The first ASOS Challenge was successful in the sense that it taught us a few lessons on investment timing. Only three of 11 shares ended in profit and that included ASOS itself: congratulations to legend for BNH and bosley for SEO. Back to the drawing board for the rest of us (over the year the portfolio would have thrashed any opposition!).

Participants welcome for the second challenge. Primary objective is to find shares that will double in value by 1st July, beating ASC in the process; secondary to be most successful stock-picker in terms of the value of your 20K portfolio. Rules are:

1.Each participant has 20K which can go into 1,2,3 or 4 shares in units of 5K.
2.ASC has 20K and is team yardstick, not in individual portfolios.
3.Duplication between entrants OK with no upper limit for total for one share.
4.Start weekend of 21st Jan. Buy price half way between closing offer and mid.
5.Latest time of entry to be 8 pm on Sunday, 23rd Jan.
6.Challenge to close Friday, 1st July.
7.Entrants can switch up to a total of 10K; av. of Friday close bid and mid.
8.Progress reports to rank shares by performance but also participants (initial only to protect from the ridicule of outsiders!).

Participants welcome. Just post selection here or on ASC thread.

Eric

Eric, just noticed my post of last Friday asking to switch from MOB to SEO
didn't register I must have pressed the wrong button.

No doubt being the decent sort of chap that you are you will see me all
right.

capa

yes and me i changed all mine to seo, lol.

Eric

I am really surprised you did not get my post asking you to log my entire 20k plus the additional 20k gearing I borrowed from my Mum against SEO. Disappointed to be left out as I am sure I would have won.

LOL :)

SD

And don't forget I backed Wales at 2-1 last Friday with my dosh :-)

What a load of try-on merchants. The only one that is at all credible is DIL and he has had his day in the sun! The others have to write out each day: "I will not take profits on SEO but will hold them until they get to 50p". Have just had to give a sermon on the SEO thread - some were talking about taking profits. One even went so far as to say that they were only real profits when they were in the bank. I told him he was better holding a real growing asset like SEO than a reducing asset in the bank. Did he sell his house to make his asset real and then buy it back again next week? What a load of codswallop!

Sorry folk, out all day and its taken me an age to tend my rapidly growing assets at SEO, NLR and YOO. Will do the portfolio update tomorrow. Now I do have a message for all those looking longingly at SEO and thinking that the contest is over. The answer is: invest real money in SEO; use CFDs if possible to increase the gearing - the journey has only just started! More tomorrow.

Eric

Thanks EW , I did tell you :-)

SECOND ASOS CHALLENGE

The portfolio is up 15% in its first three weeks. OK, SEO accounts for some 10%but it is still pretty good going.

epic cost___ shares_ price_ value gain% week
SEO_ 7.19___ 456900_ 17.0__ 77673 136.4 58.1 BBSSUUW
NLR_ 394.5__ 5080___ 602.5_ 30607 52.7_ 11.5 CDMM
BGT_ 130.5__ 7660___ 177.5_ 13597 36.0_ 4.4_ JJ
CFP_ 0.28___ 3570000 0.38__ 13566 35.7_ -2.6 WY
DGM_ 18.19__ 110000_ 23.0__ 25300 26.4_ 1.1_ BEMS
BPRG 67.25__ 14870__ 84.0__ 12491 24.9_ 15.5 TT
AGL_ 128.25_ 3900___ 156.5_ 6104_ 22.0_ 9.8_ B
MLS_ 7.19___ 69500__ 8.5___ 5908_ 18.2_ -10.5 W
BGC_ 84.8___ 5900___ 98.25_ 5797_ 15.9_ 11.3 K
MDW_ 9.09___ 165000_ 10.5__ 17325 15.5_ 18.3 SV
CEY_ 12.625_ 39600__ 14.5__ 5742_ 14.9_ 0.0_ I
GWP_ 120.25_ 8315___ 135.5_ 11267 12.7_ 15.3 EE
MOB_ 230.75_ 2165___ 259.5_ 5618_ 12.5_ -12.0 C
GHH_ 191.5__ 2610___ 214.5_ 5598_ 12.0_ 12.6 G
PCI_ 10.625_ 47000__ 11.88_ 5584_ 11.8_ 9.2_ T
RSG_ 466.25_ 1070___ 515.0_ 5511_ 10.5_ 0.5_ P
DFD_ 136____ 3675___ 148.0_ 5439_ 8.8__ 1.7_ A
HCEG 63_____ 7935___ 68.5__ 5435_ 8.7__ 3.8_ O
THUS 15.19__ 32900__ 16.5__ 5429_ 8.6__ 4.8_ O
IDS_ 212.5__ 4700___ 229.5_ 10787 8.0__ -5.7 GH
BAG_ 811____ 615____ 870.5_ 5354_ 7.3__ -0.5 P
CRDA 327.375 1525___ 348.25 5311_ 6.4__ -0.5 P
KCOM 62_____ 16100__ 65.8__ 10586 6.0__ 1.9_ OO
TRT_ 87_____ 5750___ 91.8__ 5276_ 5.5__ 14.7 K
BPG_ 667.625 1500___ 699.5_ 10493 4.8__ 2.9_ DP
ACE_ 258.25_ 1935___ 264.0_ 5108_ 2.2__ 0.6_ G
IDOX 11.75__ 42500__ 12.0__ 5100_ 2.1__ 5.4_ v
AUG_ 256.25_ 3900___ 261.5_ 10199 2.0__ 6.3_ DE
SPS_ 50.5___ 49500__ 51.5__ 25493 2.0__ 2.0_ AHIKK
CIU_ 162.25_ 3080___ 164.0_ 5051_ 1.1__ -0.6 G
NRG_ 220.25_ 2270___ 221.5_ 5028_ 0.6__ 1.4_ C
CASH 142.25_ 7030___ 143.0_ 10053 0.5__ 5.9_ CD
XEN_ 7.44___ 67200__ 7.3___ 4906_ -1.9_ 2.1_ v
FTO_ 8.69___ 57500__ 8.4___ 4819_ -3.6_ -2.8 Y
NML_ 5.31___ 85750__ 5.12__ 4390_ -3.6_ -3.6 W
TND_ 22.5___ 111000_ 21.5__ 23865 -4.4_ 1.2_ LLLLR
PAY_ 255.75_ 1955___ 244.0_ 4770_ -4.6_ 2.7_ m
BNH_ 125.25_ 15970__ 116.5_ 18605 -7.0_ -4.1 AIRR
PMD_ 0.875__ 571400_ 0.8___ 4571_ -8.6_ -3.0 Y
KYS_ 15.875_ 63000__ 14.3__ 8978_ -10.2 -12.3 UU
EPD_ 51_____ 9805___ 45.5__ 4461_ -10.8 -13.3 I
PET_ 53.75__ 18600__ 47.0__ 8742_ -12.6 -6.5 JR
DES_ 62.25__ 8030___ 52.8__ 4236_ -15.3 2.4_ H
PDX_ 231____ 6495___ 191.5_ 12438 -17.1 -0.3 AJT
ASC_ 78.5___ 25480__ 65.0__ 16562 -17.2 2.8_ ZZZZ
TAD_ 9.375__ 53300__ 7.75__ 4131_ -17.3 0.0_ Y
PKL_ 192.25_ 2600___ 154.5_ 4017_ -19.6 0.3_ H

totals___________________ 507315_ 15.3_ 8.3
small-cap index_____ 2972.6 (anyone with access to the starting figure?)
Major movers of the week:
SEO up another 58%! Its a natural conclusion to draw that the market has been missed. This is probably far from being the case. The sales projection for 2 years ahead is 1000 machine sales and my estimate is that the pe will then be down to 10 at the present price whereas before long those projections will be left behind. ASDA are negotiating a contract and this will be on SEO's terms given that exclusivity for a period must be extremely valuable for ASDA. BUY!

There are 7 other shares which have moved more than 10% this week: MDW, BPRG, GWP, TRT, GHH, NLR, BGC. All the charts look positive to the layman (analysis appreciated, johngtudor).

BPRG are worth picking out because they have won a court case with SEO - whatever the actual sum received, which may include the InGel division of SEO, this is very much intended to demonstrate their toughness in protecting their rights. They are playing their position long-term, replacing technology unchanged in 60 years, so unlikely to move as fast as SEO but a very good medium term play.

NLR are worth picking out also as a share perhaps none of us can leave out of their portfolio. The share just rises nearly every day - the reason is that there are more and more gambnling on the internet every day and nearly all the money is moved about by NLR.

INVESTORS
BOS and Seb are almost out of site with double holdings in SEO; hats off to them! Yours Truly and Markus are also indebted to SEO but are probably fighting for the places. Moneyplus performing particularly well without any SEOs! Team has gone to sleep, ladies excepted, probably dreaming of all those sylph-like young girls in ASOS dresses (or without them!).

B 80.4_ T 11.1_ I -0.2
S 78.7_ J 10.6_ A -3.3
W 44.5_ V 7.8__ L -4.5
U 37.7_ O 7.2__ H -6.3
M 32.0_ P 7.1__ R -7.7
C 16.6_ K 6.3__ Z -17.2
D 15.1_ G 5.8__
E 13.5_ Y 1.5__

A reminder of the Stock Exchange challenge which starts at the end of March in which there is money to be won for the winner in each region based on 10 stocks at 5000 each, one of which must be in your own region (great that SEO is in South-East!). It adds work for administrator of thsi challenge to change shares so I propose we leave this offer open for two more weeks only. I will assume this is accepted unless anyone objects.

Good investing! Eric

Thanks Eric-pleased with Nlr rise but still waiting for Pay to start rising. Congratulations to the leading hands!

EW...well done on updating and seeing who is where in the comp...Are you sure that you that my BGT , MDW ande AEN haven't put me up there somewhere?..( I always dream:-)
LOL Jules

top of the league...again!!!! cheers

eric , what's the stock exchange challenge?

bos

Just go to www.imvestaquest.com for details. Entries close by 4th March although I think the competition runs from the end of March to end of June. By the way, you haven't got a chance because you can only count SEO once only! lol! 5K for the reional winner who goes into the inter-regional final. Blast! Sponsored by Barclays but it will be good to take their money off them. If there are 10 regions we can win 10 prizes between us, can't we!

Eric

congratulation bosley
but just wait mdw takes off

regards
seb

Thanks again, Eric, for posting.

But remember that I actually updated my SEO holding from 5k to 10k a while ago (just wish I'd have done so IN REAL LIFE!) so I think we are still in with a shout here? From being in 4th.from last pos. ..... up to mid-table..... then up to 6th. pos. ..... and now up to 4th. pos., remember my prediction: Markusantonius will win this Challenge at his first attempt - "It's a Marathon, not a sprint!". Sorry, but I've had a few beers this evening!!!!!

Regards,

Kus.

Markus

Good to learn that you are in relaxed mode after a few beers. SEO transfer already into your performance - mind, I intend to keep you behind me in 4th; not sure that I can catch seb or bos with only one portion of SEO. I accept it is a marathon which is why I suspect someone will come through: loof at moneyplus for instance without the benefit of any SEOs.

Eric

I would like to encourage comment on your selections in the portfolio, with cross-reference to the appropriate bb. In addition to my comments in the weekly report, worth mentioning:

ASC: driven down by shorting and are now an excellent buy with good potential to doube over the next few months.
AZM: I came out of these when I realised their timescale was probably too long for the challenge. However, there has been an excellent article in the IC (see bb) and I would be confident on the share doubling at least by the end of the year, if you have more patience than me. I would hate to be left in the cold (the NW wind is bad enough this morning) so I've taken out a CFD to tuck away; negligable downside risk.

Eric

Eric lots of enquiries on the NLR thread as to who you do your CFDs with--the interest is rising but it takes nerve!!

General Q re: MM's - Does anyone if they are allowed to (and actively do) make agreements amongst themselves to manipulate the sp's/spreads, eg. by acquring stock at a relatively low sp in the sure knowledge that they can all hike them up at a later date? Say if institutions want them in huge volume but supply is short at the moment? Hope this Q makes sense!

Hi to all you wealthy experts. I too am a newcomer, but feel I know many of you already. I purchased ASOS at 10p and SEO at 6p, I still hold both - rightly or wrongly !!!! I also will watch with interest, and learn ! Dave

Welcome, Dave, and well done! Some of us tend to trade in and out too much. Looking back over 2004, I would have been far better to have just stayed in ASC and reviewed it at the end of the year. I am now out of theshares, but have built up a decent CFD position around present prices. Have decided to run SEO through the inevitable downs and ups.

moneyplus: operate CFDs with blue index; will pop over to the NLR bb and put a fuller answer there. I don't think its a different order of 'nerve'. If you invest 10K is SEO, say; then , with a CFD at 4:1, you are effectively investing 40K. So, if the price doubles, you are plus 40K instead of 10K. If the price halves, you are minus 20K instead of minus 5K. Its really just a matter of gearing. The key thing is to select a share with limited downside compared to upside, but that a good principle anyway! The really difficult thing, I am finding, is the decision whether to close a position once you have a significant margin as, by that time, the downside has becoming a relatively larger risk.

Eric