Just a quick update on trades in November and December within my portfolio:
The following have been sold or position reduced:
BOO: 50% sale of position bought at 27p: maybe just getting a touch lofty and occupying too higher a percentage of the dealing account and subject to CGT.
TRAKM8: their results on 28th November were in my view a bit of a disaster and to add zero joy, a profits warning. In 95% of the cases where I hold a stock that suffers a profits warning, I sell as soon as I can on that morning. Thankfully I only had a tiny initial position of 1000 shares as I felt slightly uncomfortable opex costs being partly capitalised. I sold my holding at 141p for a niggly little loss of £700; apart from “I told myself so”. I also feel that TRAKM8 management could have been shall we say, been a touch more dynamic in keeping the market informed. Once I lose trust in management, that’s it, I am out and unlikely to return. Interestingly I got out early at 141p on the day of the RNS, 28/11/16, the price has kept dropping and at the time of writing sits at 90p to sell.
GVC: I bought these back in January this year as I liked the transformational story that was unfolding. On an initial purchase, I place a 20% stop loss which I then convert to a non-automated 12-15% trailing stop loss as the share appreciated. This one has done quite well but has been falling back recently and breached by 15% trailing stop loss so time to lock in a 33% profit on a medium sized holding.
The following have been purchased or added to in the last couple of weeks:
IG Design: a top up of current position following very good interims on 29th November and a very positive outlook statement. I also get a very good impression of the management of IGR and with the exception of really bad news, intend to hold for some time.
Topps Tiles: I rather liked the final results and the ditching of low margin products and the move to higher margin item including the large sized tiles; my thought was that the market had just not latched onto the change. However, an unfortunate accounting oversight in like for like sales has caused a jitter but not so much a jitter as that to be felt within their finance directorate I would suspect. These things happen, unfortunately, yet no lasting damage done as such in my opinion.
Patisserie Holdings: CAKE: I was impressed with their interims and the organically funded roll-out programme and therefore added to a current position in CAKE. I really like the business and did not take much persuasion to adding stock on 29th November.
D4t4: this one has been shouting at me through my cash flow screens over recent weeks and has really impressive returns on capital: ROCE 21% & CROCI 39%. I dithered a little last week as I needed to find out a touch more about the increase in receivables (4211) v 2121. However, I eventually felt comfortable enough to take an initial position at 140p. Since my purchase, a tip in SCSW has sent the shares up to 170p which bizarrely is more of a hindrance than a help in terms of adding further positions.
ITV: again a share that has come up on my cash flow screens in recent months but was drifting back somewhat. That drift seems to have stabilised and I took an initial position on 6/12/16 at 171p. Very good yield and exceptional returns on capital: ROCE 40% & CROCI 23% plus decent enough trading update on 10/11/16.
Overall the financial year is progressing well and certainly much better than I thought it would be following the shock Brexit vote. I do havea few Brexit beauties that have proved real bargain buys but thats another story.
Incidentally, I always measure portfolio performance in terms of FY as it ties in with CGT and ISA timelines for the addition of cash which pleasingly increase to £20k next April. As ever, all dividends are reinvested in the relevant stock.
Welcome to my Blog Page - I hope you find my whittling on to be of some interest. I am a private investor who is happy to share thoughts on the market and individual stocks. Please remember that I am definitely not offering tips or investment advice.