No Pain, No Gain: Recruiting Proxama is a gamble which may pay off
Friday 13 December 2013
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.
Independent Partners; request a free guide on NISAs from Hargreaves Lansdown
Questions of Cash: What are my rights if my leak is caused by neighbours’ roofs?
Pension mortgages: 'The advice I was given was wrong and now I face losing my home'
Best savings rates are not all they might seem
Bargain Hunter: Win a Bentley competition to be driving in a winter wonderland
Mark Dampier: Maybe boom, maybe bust, but we'll probably just muddle along
- 1 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 2 Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
- 3 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 4 Sussex couple die in suspected Christmas Day 'suicide pact'
- 5 The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
Day In a Page
This five-bedroom red-brick beauty overlooks the village green and sits in just under two acres of land
A three-bedroom villa with self-contained flat, minutes from Lake Windermere
A deceptively spacious, beautifully presented Georgian home with 3000sq ft of living space and five reception rooms
A five-bedroom Victorian home with four receptions, superb gardens and paddock in Pembury
An eight-bedroom house on the south side of the The Green with cinema, wine cellars and summer house
This 17th century beauty is full of rustic cosiness, while the detached home office means you can also run a business
Four exclusive apartments in a Grade II-listed former medical school with 2,275 sq ft of living space and 18ft ceilings
A five-bedroom terraced house on the popular Peterborough Estate, ideally located for both Eel Brook Common and South Park
A state-of-the-art farm-building conversion on the former Cliveden Estate, with 11,420sq ft of internal space, cinema and wine cellar
A three-bedroom, 15th-century cottage with original features in the picturesque village of Sissinghurst
A six-bedroom terraced house with large south-facing roof terrace, cinema room and wine cellar
A new seven-bedroom home built in Queen Anne-style with swimming pool and parkland views in Mortimer
A listed, four-bedroom farmhouse in the rural hamlet of Rushall with detached barn, four acres of gardens and paddocks
A first-floor flat with two bedrooms, a spacious reception room and communal grounds in a leafy part of London
A three-bedroom flat with a spacious rootop terrace and balcony, accessed from a private gated courtyard
A Grade II-listed pile with six bedrooms, stables and 39 acres of grounds in Standlake
A two-bedroom flat with boutique hotel-style interiors, close to the foodie haunt of West End Lane
A two-bedroom flat in a beautiful old vicarage, with many original features, close to the city centre
A three-bedroom 16th-century home with an aga kitchen, private gardens and heated outdoor pool, in Hadleigh
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion
Enjoy summer by the Thames in this two double-bedroom converted warehouse in Rotherhithe village
A one-bedroom, luxury apartment with private gym and concierge service in Moorgate
A four-bedroom house in Hermitage Gardens with three reception rooms and landscaped gardens