Share Purchase – Cosalt

This week I bought a share purely because I thought it had bottomed out.  This opportunistic approach is not something I normally do.  Normally I like to see strong upward momentum before I buy.  However, with all the markets flattening out and talk of bubbles bursting I wanted to find a share that has already been as badly ravaged by the market as it can be.

I bought 12,500 Cosalt shares at 12p each, and, as you can see from the graph, the shares have been bobbling around at around 10p for months after a spectacular fall from around 300p in just over a year.  The shares have recently broken above the 60 day moving average.  I may have been premature in my purchase because I would normally like to see them move above the 200 day moving average as well.  But nothing ventured, nothing gained!

Cosalt Share price

I like to look at the fundamentals too (but with less interest than the share price itself).  The company makes safety equipment for maritime use.  It has recently divested itself of several non-core businesses.

As usual I only put a pre-defined portion of my fund into any purchase (around 5%) so, even if this decision is a disaster, it will not break the bank!

I will keep you informed of progress on this, and all other investments in my  SIPP.