2010 Nap review
In December 2009, I posted my 2010 Naps on Twitter.
Senior (LON:SNR)
Kryso Resources (LON:KYS)
Cairn Energy Plc (LON:CNE)
Senior (LON:SNR) (76% YTD) made the cut because it had an enviable forward order book. The signs were there that the plane market was improving and we got confirmation of that by the orders taken at the Farnborough Air Show. The car market was also on the move, perhaps due to Government incentives and the 'green' market is always top of mind these days. SNR provides parts and so it was a good multi-sector play. I have held since 26p, now 132.
Kryso Resources (LON:KYS) (62% YTD) is a gold mine in Tajikistan. There is almost no question they have 3m oz of gold but we need to know how much it's going to cost to mine and where the money is going to come from. As I type neither of these questions have been answered and things are much delayed due to a late but positive decision to change from open pit mining to underground mining. Nevertheless, we get ever closer and this week could be key as we are due to see the bankable feasibility study, which will tell us the economics of the ine. Meanwhile, the Chinese have come in with a 29% investment (bid required at 30%) and a promise to try and raise the money. I first bought at 3p and gave up at 5p. I bought back in at just over 11p, now 19.5p. I mourn the missed 'p's' but hey ho, that's the nature of investing/trading.
Cairn Energy Plc (LON:CNE) (30% YTD) despite the rise hasn't quite worked out as planned. It seemed a pretty good bet to me. An oil producer with assets in India to the value of about 350p, with a massive and ambitious exploration programme starting in Greenland. A find in Greenland could double the size of the company overnight, I reasoned. So the way I saw it was that there was little downside and much to the upside. Yes, well. They went and sold the Indian assets to Vedanta and then the first well in Greenland turned up....er....nothing very much. I sold. This was not what I bought into. If the Vedanta Resources (LON:VED) deal falls though I will buy back but for now it's not what I bought into so it's not for me. Now 432p.
All in all not bad then. I will update again at the end of the year.
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3 comments
Cairn was up 26% on the year, hardly a great performance but it failed to find oil on its first drill in Greenland and we still don't know whether they have sold their Indian assets to Vedanta. Nevertheless, the pick beat the market. I'll score that a win.
SNR was up 100% on the year. It was a no brainer. A big win.
KYS was up 37.5% on the year. A frustrating stock....about 3m oz of gold but will it ever come out of the ground. I'm starting to think I don't care! Nevertheless, the pick beat the market. A win. BTW, Ben sneered at the NAP...so what I want to say to him is: na na na nana.
Three out of three. And a total return of 54% for the Naps.
2011 Naps:
£GCL
Kryso Resources (LON:KYS)
Senior (LON:SNR)
£WTI
Interesting post, although excuse my ignorance - what does NAP mean?
It is a term used in horse racing to describe the best bet on the day. These were my naps (for myself I might add) posted on Twitter in December '09 for 2010.
S
edit: I just googled it and found this in WikiAnswers:
"Also, it comes from a card game called Napoleon. Each player is dealt 5 cards singly from a full pack of 52 and then declares, elder hand first, how many tricks he thinks he can make. "Nap" is a declaration to take all 5 tricks and therefore comes to mean a punter's best chance."