EuroZone QE (22nd January 2015)

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Jan 222015

EuroZone – Late to the QE Party?

Some 6 years after the UK & USA started their programme of Quantitative Easing (QE), the EuroZone have finally got their act together, as reported by the BBC, as follows:


(full BBC report HERE).

The European Central Bank (ECB) has announced it will inject billions of euros into the ailing eurozone economy by purchasing bonds worth €60bn per month until the end of September 2016 – far more than previously expected. The ECB has also said eurozone interest rates are being held at the record low of 0.05%, where they have been since September 2014. ECB president Mario Draghi said the programme would begin in March.

He told a news conference the ECB would be purchasing euro-denominated investment grade securities in the secondary market. He said the aim was to achieve a “sustained adjustment in the path of inflation”, which the ECB has pledged to maintain at close to 2%.

The eurozone is flagging and the ECB is seeking ways to stimulate spending. Lowering the cost of borrowing should encourage banks to lend and eurozone businesses and consumers to spend more. It is a strategy that appears to have worked in the US, which undertook a huge programme of QE between 2008 and 2014. The UK and Japan have also had sizeable bond-buying programmes.

What is a government bond?

Governments borrow money by selling bonds to investors. A bond is an IOU. In return for the investor’s cash, the government promises to pay a fixed rate of interest over a specific period – say 4% every year for 10 years. At the end of the period, the investor is repaid the cash they originally paid, cancelling that particular bit of government debt.

Government bonds have traditionally been seen as ultra-safe long-term investments and are held by pension funds, insurance companies and banks, as well as private investors. They are a vital way for countries to raise funds.

Up until now, the ECB has resisted, although the bank’s president, Mario Draghi, reassured markets in July 2012 by saying he would be prepared to do whatever it took to maintain financial stability in the eurozone, nicknamed his “big bazooka” speech.

Since then, the case for quantitative easing has been growing. Earlier this month, figures showed the eurozone was suffering deflation, creating the danger that growth would stall as businesses and consumers shut their wallets, as they waited for prices to fall.

DIY-Investors and QE?

If you think that QE has been positive in the past for the UK & USA stock markets, do you think that there will be any positive spin off for DIY-Investors as a result of this Eurozone QE policy?

Let us know what you think, using the Contact Form.

Mick (22nd January 2015)

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Merry Christmas from DIY-Investors

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Dec 242014

Merry Christmas to all DIY-Investors

DIY-Investors Christmas Greetings from Mick Pavey

Now then… time for a few “checks”…

Log fire lit – “check!”

Christmas Lights Up – “check!”

Several mince pies eaten (well someone’s gotta check the quality) – “check!”

XMAS shopping all done – “check!” (wot hell – why do we do it?)

Presents wrapped & labelled – “check!”

This Christmas ‘thing’ is quite easy-peasy really.

It’s 4pm on Christmas Eve afternoon and I’ve got nothing better to
do than write this blog post.

I’m sure you’ve got a million and one things to be getting on with at the

So I’ll keep this short and sweet.

I sincerely appreciate all your support for DIY-Investors, your kind and helpful comments and suggestions, and just for sticking around and reading my website and blog posts (and attending the webinars) over the past 12 months. I hope I’ve managed to raise a smile once in a while and also taught you one or two new investing techniques/methods along the way.

My DIY-Investor’s approach is different I know, and it’s heartening to learn that a number of you are using/adapting the DIY-Investors way of investing by combining fundamental & technical analysis and consequently seeing better results.

Just time to say, have a wonderful Christmas.

As my marketing friend Rob chirped…

Jingle Bells
Jingle Bells
Jingle All The Way
Kojak Lost His Lollypop
And Bought A Milky Way

Till next time.

All the very best,

Mick (nothing left to do) Pavey



The next free DIY-Investors’ Webinar, looking back at 2014 and discussing the coming year, will take place at 8pm (GMT) on Tuesday 30th December 2014.

You can book your place (seats limited), by using this link.

So, whether you’re new to DIY-Investing or a seasoned veteran, be sure to register and join us for an hour on the 30th December at 8pm.

I hope you can join us for this DIY-Investors webinar, as I will be announcing a brand new DIY-Investors Competition for 2015.

Mick (24th December 2014)


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Foolish Advice (12th Nov. 2014)?

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Nov 122014

Interesting Article (Harvey Jones: Motley Fool)

This article, by Harvey Jones (Motley Fool), struck a chord with me as it shows the effect of compound interest applied to fees paid to advisors. Something that, if you’ve read my book “Picking Winning Shares”, you will recall I mention in some detail.

I’ve abstracted part of the article below…

If you’re investing for your future, it’s vital to get off to a strong start. But if you take independent financial advice before deciding where to put your money, you have to accept you’re starting with a handicap. New figures out this week show that the average independent financial adviser charges £150 an hour.

  • Somebody seeking advice on a £200 monthly pension contribution pays £500.
  • And if they wanted advice on investing a £50,000 inheritance, that would rise to a whopping £1,500.

Unbiased? Moi?
The new figures are courtesy of ‘find an adviser’ site, which helps people find three named advisers in their area. If you don’t have the competence or confidence to manage your own money, by all means, take advice. But first, understand exactly how much it will ultimately cost you.

Say you are investing your full £15,000 ISA allowance for this year. If your money grows at an average annual rate of 6%, it would be worth £86,150 after 30 years.

Now let’s say you pay your adviser a £500 fee, and therefore only invest £14,500. After 30 years, your money would be worth just £83,280.

So that initial £500 fee will ultimately cost you £2,870.

If you’re interested in DIY-Investing, then read the full article HERE.

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PHTM (AGM Statement) : 23rd Oct. 2014

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Oct 232014

Photo-Me International (PHTM) – AGM

Photo-Me International (PHTM) released its AGM Statement today, see the Blog Post on PHTM Here.

Generally, everything looks very positive but beware the mixed signals on the share-price graph – shown on the annotated graph on the Blog Post (mentioned above). However, we always advise that DIY-Investors blend fundamental & Technical Analysis. So what about the fundamentals, as shown on the Key Metrics?

 Key Metrics

The Sharescope ‘Key Metrics’ are also slightly mixed, see below…

Photo-Me International (PHTM) : Key Metrics - 23rd October 2014.


Some of the PHTM Key Metrics (underlined above) are above my normal thresholds and the current share-price graph is starting to look slightly bearish. However, against that, the overall position of the Company looks very strong and it has net cash. My view is that if a DIY-Investor holds this, at a profit, then it could well become a good dividend payer in teh long-term. However, at present, it doesn’t look like a buy, with the PSR & PE being higher than my normal buy criteria. That said, remember to DYOR on Photo-Me International and make up your own mind!

Mick (23rd October 2014)

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TMMG Acquisition & Placing (7th October 2014)

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Oct 072014

The Mission Marketing Group (TMMG) – Acquisition & Placing

TMMG have been splashing out again (pun intended) and have also announced that they have placed shares to fund further acquisitions. See the text of the RNS below…

RNS Number : 5951T (7th October 2014)
The Mission Marketing Group plc (“Mission” or “the Company”)

Acquisition of Splash Interactive & Placing

The Mission Marketing Group plc (“the missiontm”), the national marketing communications and advertising group, is pleased to announce that it has agreed to acquire 70 per cent of the Asian-focused digitally-led marketing services agency group, Splash Interactive Pte. Ltd (“Splash”) (the “Acquisition”).

Completion of the Acquisition is expected by 20 October 2014, when an initial consideration payment of SGD 0.6m (£0.3m) will be payable in cash from the Company’s existing resources. The consideration for the Acquisition (the “Consideration”), payable in cash instalments depending on profitability during the period to 31 December 2017, has been structured such that the vendors of Splash, who will continue to manage the business, are incentivised whilst ensuring that the Consideration fairly reflects the maintainable earnings of Splash over the longer term. The Consideration is described further below.

The Company has also today placed 5,691,908 new ordinary shares of 10 pence each (“Ordinary Shares”) with new and existing institutional shareholders at a price of 42 pence per Ordinary Share (“the Placing Price”) (“the Placing”) to raise £2.4m to fund future acquisitions and general working capital purposes…”


TMMG closed up 2.25p (+5.2%) this evening, finishing at 43.25p, giving a market capitalisation (MCAP) of £33.3m. It’s come a long way since the low point at the tail end of 2010. Is it now firmly on the recovery road? What do you think?

Mick (7th October 2014)

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