The Portfolio as at 02/05/2016

Sorry for the lack of updates for those following. It's been an insane month or so and I've had no time to write anything. However, I've still been investing and doing the odd bit of research where I can.

I purchased Global Health Limited (ASX:GLH) on Friday 29 April at opening with a price of 37c because I liked the valuation (based on previous research I've done and then waiting). Over the past two days the SP has moved to 45c (on low volume). It was a complete fluke, nothing more scientific than that! Anyway, I wrote a bit about GLH a while back, and nothing has changed other than an earnings upgrade with guidance now at 3-4cps. There also appears to be a few irons in the fire with things looking positive for the company. 

On another front, I've tossed and turned about whether to add miners to this portfolio. In the end I have decided not to because I will be at the mercy of commodity prices. I can plan my investment around this, but with a one year timeframe it is rather risky if prices stay subdued.

I have added miners to my personal account however. I purchased Silver Lake Resources (ASX:SLR) on 08/03/2016 for 37c. SLR is a gold miner and explorer with no debt and a lot of cash on hand. They are cashflow positive at the current gold price. If the gold price doesn't appreciate they have enough cash on hand to survive in the mean time.

I also purchased Mt Gibson Iron (ASX:MGX) on 26/04/2016 for 22.5c. As they name suggests they are an iron ore miner and explorer. They also have loads of cash (approx 33cps which is more than the SP!) and no debt. They are currently about cashflow neutral with the iron ore price as it stands. They too will be able to survive a subdued market for long enough for the iron ore price to pick up.

Common theme with me and miners - wait until sentiment is rock bottom and valuations are very cheap. Ensure the company has loads of cash and no debt. Buy once there appears to be a resurgence in the underlying commodity price. If you are wrong about the commodity, then the company still has enough cash to survive. Then just wait until the commodity increases and the market starts liking miners again!

Hopefully I'll find the time to write more about these purchases because there's more detail I would like to add to justify my purchases.

Portfolio as it stands (current portfolio value 22k including 5.7k cash currently: