No Pain, No Gain: Recruiting Proxama is a gamble which may pay off

 

I am considering a bold move for the No Pain, No Gain portfolio – enlisting the shares of a little blue sky, highly speculative company. If I do descend on Proxama it will be something of a gamble, but I feel there is a good chance it could be a rewarding experience.

One reason for looking at Proxama is that its chairman is former stockbroker David Bailey. He was the chairman and driving force behind DataCash, an online payments group that was a profitable investment for the portfolio. Eventually the company fell to a takeover bid.

I realise that it is not always possible for an executive to repeat an earlier success. In fact, the portfolio has come a cropper chasing businessmen who have failed to follow-up rewarding ventures. But I have a sneaking feeling that the Bailey involvement in this (very) high-tech operation enhances the chances of  an outperformance.

The business only arrived on the stock market in August via a reverse takeover. Its vehicle was called Longships, originally a natural-resources investor. Proxama was started in 2005 by Neil Garner, the chief executive and a significant shareholder. The company has some interesting mobile-phone developments that allow users to buy various items while enabling advertisers, if they pay for the privilege, to track the callers.

Already some intriguing links have been created with big names in this burgeoning “mobile wallet” business and there is talk that Proxama could enjoy revenue of more than £50m fairly quickly.

In the meantime it is, like so many high-tech players, absorbing cash. At the half year the loss was £1.4m and it is now calling for £8.6m at 2.5p a pop. The shares are just over 3p; they have topped 7p since their arrival.

If the portfolio does embrace Proxama it will push its membership to 15, which is near the strength I feel is ideal for small shareholders. Such a collection should provide a varied spread of interests that offer protection to counter the unexpected swings and roundabouts that investors usually encounter.

My share collection has a few winners but I am not particularly keen on locking in profits. After all, with or without the Christmas rally, the stock market has enjoyed a splendid year. I realise in most walks of life prediction can be a hazardous activity, but I feel next year will be another good one. Despite the usual array of doubts that question almost every official forecast, there are good reasons for believing – as the Government maintains – that this country’s economy is on the mend.

At the time of writing only two portfolio constituents have been in action. Avation, the aircraft-leasing group, has increased its order book by taking up five options and arranging another five. A total of 14 aircraft should be taken on before the end of 2015. In addition, two of the fleet are being sold. Revenue, including the proceeds from the aircraft sales, for the current year will be “significantly ahead” of last year. Avation also owns  61 per cent of Aim-traded Capital Lease Aviation that produced profits of $4m (£2.5m) in its last year.

Brightside, the insurance broker, has a new chief executive. Paul Williams has been recruited from Towergate Partnership, an insurance intermediary. The shares are only just above the portfolio’s buying price, but Brightside directors have clear views about recent performance. They describe the shares as an “undervalued, dividend-paying, growth stock with an enviable balance sheet”.

The shares are a little over 19p; Avation is around 129p against an 83.5p buying price.

PROMOTED VIDEO
Arts and Entertainment
Neil Young performs on stage at Hyde Park
musicAnd his Hyde Park set has rhyme and reason, writes Nick Hasted
News
Women have been desperate to possess dimples like Cheryl Cole's
people Cole has secretly married French boyfriend Jean-Bernard Fernandez-Versini after just three months.
Arts and Entertainment
AKB48 perform during one of their daily concerts at Tokyo’s Akihabara theatre
musicJapan's AKB48 are one of the world’s most-successful pop acts
News
Ian Thorpe has thanked his supporters after the athlete said in an interview that he is gay
people
News
The headstone of jazz great Miles Davis at Woodlawn Cemetery in New York
news
Arts and Entertainment
Brendan O'Carroll has brought out his female alter-ego Agnes Brown for Mrs Brown's Boys D'Movie
filmComedy holds its place at top of the UK box office
News
newsBear sweltering in zoo that reaches temperatures of 40 degrees
Arts and Entertainment
Professor Kathy Willis will showcase plants from the Royal Botanic Gardens at Kew
radioPlants: From Roots to Riches has been two years in the making
Extras
indybestThe tastiest creations for children’s parties this summer
Arts and Entertainment
TV The follow-up documentary that has got locals worried
Arts and Entertainment
Paolo Nutini performs at T in the Park
music
Finacial products from our partners
Property search
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Sales Executive - Central London /Home working - £20K-£40K

    £20000 - £40000 per annum: Deerfoot IT Resources Limited: Sales Executive - Ce...

    HR Advisor - 6 months FTC Wimbledon, SW London

    £35000 - £40000 per annum + Benefits: Ashdown Group: HR Advisor - 6 Months Fix...

    Information Security Manager (ISO 27001, Accreditation, ITIL)

    £70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...

    Biztalk - outstanding opportunity

    £75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...

    Day In a Page

    Super Mario crushes the Messi dream as Germany win the 2014 World Cup in Brazil

    Super Mario crushes the Messi dream

    Germany win the 2014 World Cup in Brazil
    Saharan remains may be evidence of the first race war, 13,000 years ago

    The first race war, 13,000 years ago?

    Saharan remains may be evidence of oldest large-scale armed conflict
    Scientists find early warning system for Alzheimer’s

    Scientists find early warning system for Alzheimer’s

    Researchers hope eye tests can spot ‘biomarkers’ of the disease
    Sex, controversy and schoolgirl schtick

    Meet Japan's AKB48

    Pop, sex and schoolgirl schtick make for controversial success
    In pictures: Breathtaking results of this weekend's 'supermoon'

    Weekend's 'supermoon' in pictures

    The moon appeared bigger and brighter at the weekend
    Iraq crisis: How Saudi Arabia helped Isis take over the north of the country

    How Saudi Arabia helped Isis take over northern Iraq

    A speech by an ex-MI6 boss hints at a plan going back over a decade. In some areas, being Shia is akin to being a Jew in Nazi Germany, says Patrick Cockburn
    The evolution of Andy Serkis: First Gollum, then King Kong - now the actor is swinging through the trees in Dawn of the Planet of the Apes

    The evolution of Andy Serkis

    First Gollum, then King Kong - now the actor is swinging through the trees in Dawn of the Planet of the Apes
    You thought 'Benefits Street' was controversial: Follow-up documentary 'Immigrant Street' has got locals worried

    You thought 'Benefits Street' was controversial...

    Follow-up documentary 'Immigrant Street' has got locals worried
    Refugee children from Central America let down by Washington's high ideals

    Refugee children let down by Washington's high ideals

    Democrats and Republicans refuse to set aside their differences to cope with the influx of desperate Central Americas, says Rupert Cornwell
    Children's books are too white, says Laureate

    Children's books are too white, says Laureate

    Malorie Blackman appeals for a better ethnic mix of authors and characters and the illustrator Quentin Blake comes to the rescue
    Blackest is the new black: Scientists have developed a material so dark that you can't see it...

    Blackest is the new black

    Scientists have developed a material so dark that you can't see it...
    Matthew Barzun: America's diplomatic dude

    Matthew Barzun: America's diplomatic dude

    The US Ambassador to London holds 'jeans and beer' gigs at his official residence – it's all part of the job, he tells Chris Green
    Meet the Quantified Selfers: From heart rates to happiness, there is little this fast-growing, self-tracking community won't monitor

    Meet the 'Quantified Selfers'

    From heart rates to happiness, there is little this fast-growing, self-tracking community won't monitor
    Madani Younis: Five-star reviews are just the opening act for British theatre's first non-white artistic director

    Five-star reviews are just the opening act for British theatre's first non-white artistic director

    Madani Younis wants the neighbourhood to follow his work as closely as his audiences do
    Mrs Brown and her boys: are they having a laugh?

    Mrs Brown and her boys: are they having a laugh?

    When it comes to national stereotyping, the Irish – among others – know it can pay to play up to outsiders' expectations, says DJ Taylor