Stock of the month: BHP Billiton

BHP Billiton is one of the world's largest mining companies, focussing on precious metals which is helping to drive the emerging economy of China.

The blue line, rising dramatically recently, shows BHP Billiton's share price compared with the FTSE100. We bought these shares at 363 pence in September 2003: they are now worth 1390 pence, a gain of 214%.

Report for June 2007

After a promising start, the FTSE100 slipped back steadily during the last week of June, ending the month as it began at 6608. The PIC Unit Value also stayed the same at 125.5.

Only four of our stocks increased in value this month: BHP Billiton (+15%), China Growth, BP and Island Oil & Gas. Biffa was the worst performer at 17% down but Severn Trent (-12%) and Tesco (-9%) also disappointed.

Island stays in our StockWatch window (at -49%), but we are still hoping for good news following the recent gas strike.

We have £6,800 in cash (22% of our assets), awaiting further withdrawals by Daniel and a request for an investment in the Lorne Street Bakery Project in Oswestry.

Report for May 2007

May was a busy month with the FTSE100 rising 3%, most of our shares going up in value, and two stocks disappearing from our portfolio.

First the gains. African Platinum were finally bought out by Impala Platinum and we made a tidy profit of £2441 on the sale of our holding. This is the best return we have had so far. Reuters received a takeover bid from Thompsons and the share price rose 32% to a value only a little below its purchase price in 1999. BSkyB and Experian also did well to show double figure gains over the month. BHP Billiton, SpeedyHire and our China Units also did well in May.

But we made losses too. GlaxoSmithKline shares were hit by a report of adverse effects of one of their best-selling drugs in the US, and we followed our stop-loss policy and sold our entire stock, making a loss of £210. Island Oil and Gas fell sharply on the announcement that the company were issuing shares at a lower than market price in order to raise quick capital for further drilling, and the share value went down 32% in the month! [They have since recovered some of that drop with news of a gas-strike.]

So our Unit Value slipped marginally and now stands at 125.37 (i.e. 25% up overall).

Note that one member has taken out a small loan and has given notice that he wishes to sell the bulk of his Units soon to finance a property investment which he hopes will provide an even greater return!