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My ASX Small Cap Stock has been made a Takeover offer (the share price has exploded)

Caroline Mark
I'm excited about my ASX Share Portfolio. I check it on my app as often as I check my bank balance, so every few days I've been checking the share prices and I've seen it move a bit but right now I'm feeling great as we've had some fantastic news about one of my ASX small caps Panoramic Resources. Also, last week I cracked $10,000 in market value which made me smile.

ASX Small Cap Panoramic Resources has a takeover bid (and what that actually means)

But today I looked and my ASX Share portfolio had gone up a few hundred dollars! Panoramic Resources (PAM).  one of the ASX small caps on our Best ASX Stocks to Buy list - you will remember I decided to have some fun and invest $1,000 in 3,000 PAN shares after reading our Australian Stock Report with an updated Best ASX Small Caps Stocks to Buy List.

Well, it's up from 30.9c to 42.5c because Independence Group (IGO) has announces its intention to make an offmarket takeover offer. This means IGO is offering 1 IGO share for every 13 Panoramic shares. The implied offer price is 47.6 cents per Panoramic Share. Yippee!

Obviously Under the Radar Report's team of expert analysts will be updating us all on what exactly to do, but the basic point is if you own PAN share like me be happy!

ASX Small Cap Somnomed

Somnomed was another ASX Small Cap stock on the same list that I reviewed. I decided not to buy it but it's share price has almost doubled in the last four months. This list of Best ASX Stocks to Buy is clearly one to watch!

ASX Small Caps versus Blue Chips: How are my other ASX Shares going?

All the ASX shares I have bought on the back of Under the Radar Report's recommendations are in the black, except for one! What's fascinating is it's not the 'risky' ASX small caps that have dropped. ASX Small Cap PAN is up nearly 40% and ASX Small Cap Voltara (VHT) that I also bought is up nearly 20%!

It's the the big goliath bank NAB that has taken a hit - I'm down $130 and its down 4.45%. Obviously I'm not about to sell in disgust, I'm sure it will be up again and remember I bought it as it pays a nice dividend ( 5.9% forecast dividend yield).
 

What I've learnt so far from Investing money in ASX Shares

1. Don't be afraid of investing in the share market. Just open an account - it really as simply (and as annoying) as opening any bank account.  It is a bit boring like any administrative task but really it just take 15 minutes and do it! Download the app. It's quite addictive and fun actually. (I can't believe I'm saying this as I promise you I'm not the sort to be naturally interested in shares).

2. It's really ok to start small in terms of how much money to invest in the share market. You don't need a fortune. I'm really enjoying using the money I've saved in a month and as it's a new month, I'm now thinking about which shares to buy next!

3. It hasn't been a disaster. In fact, so far it's been great! Firstly I have invested $9,800 that I've got together in the last few months and I haven't spent it! Secondly, the shares I've invested in as a 'portfolio' are doing really well and I'm up 5.5% or over $540. After less than two months I'm really happy. I obviously don't want to jinx myself so I'm not going to say any more about it!

I own five ASX shares, three of which are ASX small caps (which are all in the black) and two ASX Blue Chip shares. AWC's share price moves around quite a bit but I'm up 4% and about $100 and as I said before NAB has lost money but I'm not worried about this.
 

What's Next in my plan to build up an ASX share portfolio one stock at a time?

Well it's November! It's a new month and last week we came out with a new portfolio of ASX Small Caps that pay dividends. We all know I'm personally after share price growth AND dividends too. Now that I have some money in my trading account I'll be re-reading last week's report and seeing what has happened to the share price of the ASX small caps that I have my eye on.

I was going to buy another Blue Chip banking share. Maybe now that NAB's price has dropped I should buy a few more of those so then the average price I've bought them at will be slightly lower. It's a thought to ponder. I'm not rushing in but I'll be back to tell you all about it!



 

About the Author

Caroline Mark

Caroline Mark is the Founder and Publisher at Under the Radar Report, which provides independent ASX share research to help build investor’s share portfolio. Under the Radar Report is licensed to give general share financial advice only (ASFL: 409518). The author is not licensed to give personal financial advice and this commentary is for general information only.

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