Monthly Archives: January 2016

Phase Holographic share issue

Phase Holographic – share issue

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Start-ups like Phase Holographic Imaging needs money, often lots of money to develop. There are different ways to get the money. First option: bank-loan. Unfortunately, this is often at a high interest rate since there are few assets and low security in a start-up – and then the company will fight to pay the loan back. In general, borrowed money makes it harder to achieve break even. Next two options are to ask the current investors or the public for the money. When they ask the current owners, it is a share issue with preferential rights – and a public issue when shares are offered to whoever wants to invest. The fourth possibility is to find an investor or a group of investors willing to invest in the company and make a private placing. So funding comes from either the bank, the current owners or new investors.

Friday January 29th Phase Holographic announced a double-issue totalling 40 MSEK. 25 MSEK will come in through a preferential rights issue and 15 MSEK via a private placement. The issue price for both is 23 SEK. In the preferential rights issue the current owners can buy 1 new share for each 9 shares they have. If an investor holds 900 shares, he or she is entitled to buy 100 new shares at a price of 23 SEK each. Investors must own shares Wednesday February 24th to have this right to new shares. Continue reading

Year-end reports

Year-end reports

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February is the months for year-end reports. The year circle of many companies follows the calendar, and throughout February, they are published – with a few in January and a few in March.

For growth shares at an early stage of their development the year-end reports is not the main driver of the share price. For lager companies guidance given in reports often have an impact on the share price. The share price development of growth shares are governed more by non-financial press releases: a CE-marking, an initial order, a FDA-approval etc. than by financial results.

Of my portfolio, I expect the share price of Nexam will gain by the report – with Fortnox, G5 Entertainment, Heliospectra, and Recyctec as probable benefactors. Continue reading

IPO in RhoVac and Invent Medic

IPO in RhoVac and Invent Medic

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I have noticed, that I spend less time on my shares in times where the market is pointing downwards – and more time when the direction is up. At some point it is simple psychology – and from the number of visitors on this blog, I have a strong feeling that I am not the only one behaving like this. It is clear both in August and in January that there is a strong correlation between the number of visitors and times where shares are losing value.

For a company making an IPO, I imagine that these crisis as the current, adds a certain degree of lottery to the process. If people are less willing to read on shares, spend less time on search for information on shares or investment possibilities, and in general are more cautious with their money, raising the necessary capital is much harder.

My guess is that the two offers to participate in IPO’s I have received in January will have tougher times finding investors than similar companies in November or December. Since none of the have yet expired, I have no idea of the result of the IPO’s. None the less, I’ll give them a bit of attention, even though I will not participate in neither IPO’s.

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Another red week

…and it goes on. Another red week

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This has been another red week at the share markets. After what happened in the first week of January, I hoped that this week somehow was ‘back to normal’. But no. And especially Friday was a depressing day. With two exceptions, all shares in my portfolio dropped more than 4 %. One, BrainCool, dropped 11 %. Basically just because everybody got nervous.

My conclusion in my update last week, was (a little surprisingly) that my portfolio proved very robust and fell less than market. This still goes. The OMXSPI (Stockholm broad index) is down 10.2 % since New Year compared to -7.6 % of the portfolio. The difference is app. the same 3.5 %-points, we saw last week. Continue reading

The effect of minor crisis

The effect of crisis

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I have often wondered how hard crises on the share market hits my growth share portfolio. Consequently, in this post I will take a closer look of the effect of the development on the share market the first week of 2016. The agenda was set by a new crisis in the Middle East (Saudi Arabia vs. Iran) and heavy downfalls on the Chinese share market affecting markets all over the world. Dow Jones is down 6%, FTSE 100 is down 5 % and in Copenhagen, the broad index OMXCPI is down 4 % and in Stockholm OMXSPI is down almost 7 %.

The Swedish share market was closed Tuesday afternoon and Wednesday. In effect, this week only contains 3½ trading days. The feeling I had Friday afternoon (without firmly checking) was that it had been an expensive week – especially Thursday were grim. And that my losses exceeded the general downfall. Continue reading

Portfolio performance December

Portfolio performance in December

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December was a green month – in more than one sense. The weather was warm and my lawn seemed to grow in both November and December, but more interesting the predominant colour in my portfolio performance for December is green.

In this post, I will evaluate the portfolio performance in December (and in 2015) and give a few comments of what to expect in 2016. The performance first. Continue reading