What's Good? - 05/10/2025

Preparing Conviction Notes for my Playbook strategy might be the bottle neck in the asset selection process 

It's the sifting through key financial metrics to then input those figures into tables that takes time

If I could somehow semi automate this task and have AI populate the fields for me, this would bring some level of efficiency to completing Conviction Notes.

I am finding that the output from AI is somewhat confusing and I have to painstakingly verify each piece of data.

Manually checking pretty much tells me I may as well be doing the whole task manually.

The thing is, after completing only two Conviction Notes I can see that financial reports do not follow a standardised format.

For instance, ASML provide a spreadsheet. UNL provides a colourful booklet with pictures and lots of text separated by the off table here and there.

And this is why interrogating documents is easier done with AI; it can filter those details far quicker than I can making the process efficient.

But the inefficiency comes when I am challenged to double check.

That said, I don't have to do this undress of times.

My first filter when picking stocks is looking at the chart. If the general direction of share price is upwards then this is a pretty good signal a company is doing good things.

On the other hand, if a chart shows share price tanking, this might be indicative of rough waters and a company not doing so well. 

And if a company starts off with a high share price then it tanks and flat lines, well, I don't really know what to think.

There is a company, N4 Pharma, that is in its R&D phase producing a silica based nanoparticle platform for delivering RNA based therapies. 

If this company is successful with their trials and they are able to license their process to industry giants, they are likely to become highly profitable.

I am tempted to buy shares, but investing in a company that is yet to make a profit is high risk, it also doesn't fit my playbook strategy.

The issue is, this company is going through trial phase with its technology and if successful it won't take long for their share price to increase dramatically. I want to get in while their share price is peanuts to be part of their success.

100 shares at this price is only £62.00. 1,000 shares is only £620. The share value has potential to 100x sharply. £62,000 is a decent chunk of cash. And that's only assuming a 100x. The potential for this technology could see the company's share price 1000x.

The fact picking this stock does not fit my playbook strategy is a sticking point. It's high risk and could be problematic. But the potential to turn £620 into £62,000 or even £620,000 is very appealing.

To play it safe, I could cash out of crypto and off ramp £800 and stick that into N4 Pharma. That way, it's not cash I am going to miss as I pretty much hardly ever focus on my crypto holdings of late.

Messing about with crypto has brought me many losses - more losses than gains. Diverting a chunk to this hopeful could be very rewarding. Plus, it's a beneficial area of medicine that will help people, or is intended to help people.