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B PRSM
Micawber
Posted: 22 May 2017 13:20:16(UTC)
#41

Joined: 27/01/2013(UTC)
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Well, in January I took out profit to the tune of twice my stake and kept my original £stake which is currently showing 498% profit and has again crept over my normal threshold for an AIM holding.

The impressive thing (to me) about Blue Prism is the operational savings that customers implementing its systems report - of the order of 30%.

I'm not going to add to my holding, but am very happy to continue with what, for me, is now a free lunch and more. Overall, what I call my fun pf is up 28% in nearly five months, with others among the 11 stocks in it including Sophos and Learning Technologies, and I am having to manage potential CGT liabilities.
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J Thomas on 22/05/2017(UTC)
J Thomas
Posted: 22 May 2017 22:59:42(UTC)
#42

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I bought a fourth tranche of Blue Prism this afternoon at £8.90, off its high of £9.40 earlier in the morning. The shares were the subject of heavy selling and profit taking all day, yet were still showing gains at the close of 3.5%, with heavy buying at 4.30pm from institutions pushing the sp up to £9.14 after hours.
With a very limited share float, it appears more money is simply being offered to persuade small investors to sell up.
This latest buy takes my holding up to my third largest, and the profit from B PRSM has now entirely used up my CGT allowance for 2017/18 so tax planning is now required.
Going forward, much will now depend on the results due out at the end of June, and investors appear to be buying ahead of these.
As I may have mentioned previously, I take the 'Barbell' approach to investing; that is using the dividends and capital gains from bond proxies such as SSE, AZN, Shell B, etc to buy shares in the more exotic B PRSM, Apple, Amazon, etc.
This idea has worked very well over the last two years, with my AUM up 63.85% over 21 months, although of course the past is of limited guidance to the future.
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Micawber on 23/05/2017(UTC), Mickey on 23/05/2017(UTC)
S_M
Posted: 23 May 2017 06:23:52(UTC)
#43

Joined: 17/03/2011(UTC)
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J Thomas;47066 wrote:
I bought a fourth tranche of Blue Prism this afternoon at £8.90, off its high of £9.40 earlier in the morning. The shares were the subject of heavy selling and profit taking all day, yet were still showing gains at the close of 3.5%, with heavy buying at 4.30pm from institutions pushing the sp up to £9.14 after hours.
With a very limited share float, it appears more money is simply being offered to persuade small investors to sell up.
This latest buy takes my holding up to my third largest, and the profit from B PRSM has now entirely used up my CGT allowance for 2017/18 so tax planning is now required.
Going forward, much will now depend on the results due out at the end of June, and investors appear to be buying ahead of these.
As I may have mentioned previously, I take the 'Barbell' approach to investing; that is using the dividends and capital gains from bond proxies such as SSE, AZN, Shell B, etc to buy shares in the more exotic B PRSM, Apple, Amazon, etc.
This idea has worked very well over the last two years, with my AUM up 63.85% over 21 months, although of course the past is of limited guidance to the future.


It takes nerves of steel to top up at these levels, but your strategy of re-investing dividends seems to make perfect sense to me. I don't have an income producing portfolio, so will either need to fund any extra shares out of cash holdings or the proceeds of another share sale.

For the time being I am sitting on the sidelines, and more inclined to top up on the likes of purplebricks which also has had an amazing run since floatation.

So glad that I don't have a CGT problem, most of my investments are held within SIPPs/ISAs and I wouldn't really be inclined to invest in companies that may create an additional tax liability by holding them outside of a tax wrapper. I certainly would be looking at EIS/VCTs if I had the urge to invest in start ups etc.
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J Thomas on 23/05/2017(UTC)
J Thomas
Posted: 30 May 2017 21:58:12(UTC)
#45

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B PRSM at yet another fresh high today, up another 4.3%. Does anyone know the reason; there seems to be no news or announcements anywhere that I can find.
I still gain the impression brokers are trying to tempt smaller investors to sell their shares in the very limited 38 million share float which is available to invest in. I note Old Mutual increased their holding to 6.3% last week.
I'm afraid like the fact or not, robotic software automation and AI is the future, indeed much more important to humanity than the recent and impending elections here and abroad.
If only the UK had another few hundred companies similar to Blue Prism we would be leading the world into the future.
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Micawber on 31/05/2017(UTC)
S_M
Posted: 07 June 2017 14:33:51(UTC)
#46

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SP thumped over the last 2 days down 15%, always was on the cards. I am quite relieved to be honest. If this carries on will look to top up.
J Thomas
Posted: 07 June 2017 16:12:57(UTC)
#47

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Sold out of my entire holding today at £8.02. I didn't like the look of the fall over the last couple of days with the results due out at the end of June. I still believe Blue Prism is a great Company however 15% falls in a couple of days are a lot less exciting than the 15% gains we have been used to.
The other reason for selling was this holding is outside an ISA, and the fall brought me back under the annual CGT allowance, therefor any gain above this was going to be taxed.
So, selling for £19320 a stock which has cost me £9789 equals a gain of £9531 over ten months.
That's a gain of over 100%; a fantastic return and as the old saying goes ' You'll never go bust taking a profit.'
I may buy back in the future, and may have sellers regret in disposing at this price of course.
In the interim I am keeping the profits in cash until after the election, perhaps I should just buy more Unilever.
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Micawber on 08/06/2017(UTC), c brown on 16/06/2017(UTC)
S_M
Posted: 07 June 2017 18:19:29(UTC)
#48

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J Thomas;47704 wrote:

Sold out of my entire holding today at £8.02. I didn't like the look of the fall over the last couple of days with the results due out at the end of June. I still believe Blue Prism is a great Company however 15% falls in a couple of days are a lot less exciting than the 15% gains we have been used to.
The other reason for selling was this holding is outside an ISA, and the fall brought me back under the annual CGT allowance, therefor any gain above this was going to be taxed.
So, selling for £19320 a stock which has cost me £9789 equals a gain of £9531 over ten months.
That's a gain of over 100%; a fantastic return and as the old saying goes ' You'll never go bust taking a profit.'
I may buy back in the future, and may have sellers regret in disposing at this price of course.
In the interim I am keeping the profits in cash until after the election, perhaps I should just buy more Unilever.


That's an amazing return, well done. My initial investment was only £2k its worth nearly £6k now and it sits with the tax wrapper of a SIPP, therefore no tax considerations here. I am more than happy to take a bumpy ride and top up if the price goes below £6.50. Its such an insignificant % of my portfolio that if they went bust (which is very unlikely) it wouldn't be the end of the world. I have another star performer Purplebricks which seems to have taken on the baton at this time!
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J Thomas on 07/06/2017(UTC), c brown on 16/06/2017(UTC)
S_M
Posted: 16 June 2017 06:03:57(UTC)
#49

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Not surprised that B PRSM has seen a significant retracement as tech stocks valuations are starting to be questioned. I still believe in the company and will be tempted to top up at anything sub £5.50-£6, as usual in a small way.

I now have a wall of cash following yesterdays disposals waiting to be put to use, over what I believe will be a testing summer for markets.
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Jim S on 16/06/2017(UTC), J Thomas on 16/06/2017(UTC), c brown on 16/06/2017(UTC)
J Thomas
Posted: 16 June 2017 14:34:05(UTC)
#50

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In hindsight, it appears to have been the correct move to sell my holding at £8.02 last week, although the sp did climb back up to £8.85 a couple of days later so perhaps I got off the train one stop too early. B PRSM is now trading below £7.00 as I write this and like you SM I would be tempted to buy back in at a price below £6.00.
However we saw in the last tech boom in 2000 when stellar returns were replaced by 90 - 100% losses in a few months how quickly the tide can turn. I would add that I still believe B PRSM is a great company with excellent long term potential.
I used the near £20,000 proceeds from B PRSM to purchase and add to the following:

Royal Dutch Shell B £4,000 - dividend income and potential growth.
AstraZeneca £4,000 - dividend income and potential growth.
Polar Capital Holdings £4,000 - dividend income and potential growth.
PayPal Holdings £4,000 - US market, potential growth.
Estee Lauder Cosmetics £4000 - US market, potential growth, small dividend.

You will notice the above companies obtain almost all their earnings outside the UK.
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Jim S on 16/06/2017(UTC), c brown on 16/06/2017(UTC)
S_M
Posted: 16 June 2017 16:42:08(UTC)
#51

Joined: 17/03/2011(UTC)
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J Thomas;47988 wrote:

In hindsight, it appears to have been the correct move to sell my holding at £8.02 last week, although the sp did climb back up to £8.85 a couple of days later so perhaps I got off the train one stop too early. B PRSM is now trading below £7.00 as I write this and like you SM I would be tempted to buy back in at a price below £6.00.
However we saw in the last tech boom in 2000 when stellar returns were replaced by 90 - 100% losses in a few months how quickly the tide can turn. I would add that I still believe B PRSM is a great company with excellent long term potential.
I used the near £20,000 proceeds from B PRSM to purchase and add to the following:

Royal Dutch Shell B £4,000 - dividend income and potential growth.
AstraZeneca £4,000 - dividend income and potential growth.
Polar Capital Holdings £4,000 - dividend income and potential growth.
PayPal Holdings £4,000 - US market, potential growth.
Estee Lauder Cosmetics £4000 - US market, potential growth, small dividend.

You will notice the above companies obtain almost all their earnings outside the UK.


Seems like a very sensible thing to do. I am still at least 10/11 years from needing to draw an income from my portfolio.Therefore, I still retain my original holding.

With regard to B PRSM yes we could have the doomsday scenario of 90% losses but good quality stocks/companies always prevail in the longer term. ARM holdings was battered down to the best part of £1 just after the tech bubble burst, and last year nearly 13 years later it was sold to SoftBank for around £16 a share. Robotics has a massive future ahead of it, I guess it's just a question of whether the management of B PRSM can tap into the potential. From what I have seen so far, on the limited news flow they seem to be doing a good job. The results out at the end of this month hopefully should further back that up.
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J Thomas on 16/06/2017(UTC)
RWM
Posted: 20 June 2017 21:22:13(UTC)
#52

Joined: 15/12/2016(UTC)
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I took a 20% gain for a few weeks work and sold out of Blue Prism. The volatility of the stock is a bit too much for my liking. I do think this could be a great business and the potential is huge - robotics and automation will become more prevalent in years to come. However, for a business with such small revenue at present, I think the current market value is hard to justify and don't think the fundamentals support the current share price.

Could well be proved wrong, but happy to bank a small profit and move my money elsewhere for the time being
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