So much for giving an update in August! Hope you all had a nice summer and remain safe and well?
It has been busy, busy for me and there always seems to be something better to do than to update things here! Spare time has been spent on research and maintaining my portfolio in general, as well as working full time.
I won’t waste any time talking about Coronavirus as I am sure you will have heard enough about it for today!
I am posting this update on Stockopedia for the first time to let more people see what I am up to, sometimes it is nice to see how someone else does it and what way they are thinking…
None of this is advice or recommendations.
- Number of Holdings 33 at time of writing (Down 4 since last update in May)
- Calendar YTD +3% (Up 15% since last update)
- Buy Trades 19 ( 16 Top ups & 3 New Holdings)
- Sell Trades 5
- Takeovers 2
I am working towards reducing my number of holdings back down to weed out any low conviction holdings and any that are just too small to move the dial on overall portfolio performance. I read an interesting article which suggested that 20-25 stocks was about as high as you should go to be diversified and although I do agree, I have always found it hard to achieve.
I had added a few more in the COVID crisis as starter positions but need to consolidate again, down to a maximum of 30 Holdings and as mentioned ideally 25.
Looking at what I have been buying you will see that I have been trying to build positions in stocks that I already own and believe in. There has been some that I have been able to buy at better prices and some as usual that I am averaging up on as the story and performance progresses.
BUYS – CHH, VLG
In June I bought some Churchill China at £10.74 on the hope that Covid would be defeated by now… It was a play on the revival of the hospitality sector. I have always admired this company as a quality pick with ROCE and Operating Margin always in double digits and Net cash on the balance sheet. Now that there is a definite second wave I feel safer out of this for now though and sold again at £10.20 on the 8th of October, a loss of 5.2%
Bought Venture Life Group for the first time on the 15th of June @72p after watching them break out above their 52 week high and noting their stockrank on Stockopedia push above 70 from a base around 30 previously. All a good sign of building momentum. Find out more about their products here but in a nutshell they are a self care health product supplier. From my notes I actually first spotted this one mentioned on Twitter and researched from there, and of course reading of Exceeding expectations always peaks my interest!
Dividends received on
- Strix Group PLC (KETL)
BUYS – BOO
Added to BooHoo at £2.20 on the dip on the Slave trade scandal as I think its overdone at this price.
Dividends received on
- AFH Financial Group PLC
- S & U PLC
BUYS – BLV
Added to my already large holding in Property and Lettings experts Belvoir Group as their Stockrank gets upgraded to 96 from 83.
Dividends received on
- Homeserve PLC
- Safestore Holdings PLC
- Tatton Asset Management PLC
BUYS – BLV, PMI, VLG, IGG, ABDP, IGG, BOO, NCYT
Again adding to Belvoir as Placing of 2m shares by Michael Goddard @150p brought the price down a bit. He was the original founder and at the age of 71 according to companies house, can’t be blamed for wanting to cash in a bit more…
Doubled up on Money manger Premier Miton at a much lower price, my buy timing was a bit unlucky first time (in February) but still think this merged fund manager will come good. Looks like good value as long as merger shows fruit with Stockrank of 91 and PE of 8.5.
Added to Venture Life Group as momentum continues including participation in Covid trial for their mouthwash product, and contract to supply into China is signed in August.
Continued volatility as COVID and Brexit continue without resolution is bound to be a benefit for IG Group as their client numbers continue to grow so added twice this month first time at £8 as their results came out good and again at £7.88 as the shares went Ex Dividend for 30p per share and the share price dropped 50p+ Dividend yield looks like 5%+ so happy to own more.
Also added more AB Dynamics to my ISA, I still really like this company and got more at £18.40 hoping that they continue to lead in the vehicle testing arena and that the EV (Electric Vehicle) and autonomous car developments continue. I have been a happy holder since £5.89 in 2017. Guidance of 62m revenue given and Dividend expected for FY.
Added more BooHoo after a positive response from the Levitt report and results now due in 5 days (Paid £3.69 ouch! lol)
New buy into Novacyt SA this is a dual listed company listed in France and the UK bought at £5.039p on the 30th of September as they broke out of 52 week high after they secured a huge Health Service Contract – selling Covid Antibody tests and PCR machines Stockrank is 93 at time of buying have a look into the revenue figures they are going through the roof compared to historic figures! The new contract is for initial value of £100m when the forecast revenue for 2021 was 28m. Obviously this will take a hit on any positive vaccine news but is a useful hedge against worsening Covid, so if Covid gets worse it would hit my other stocks but help Novacyt.
SELLS – RRE, FLO, PCF, HLMA
Rockrose takeover funds arrived banking 18.9% Gain
In an effort to clean up my portfolio a little I sold out of 3 of my smallest holdings with a few more ear marked to follow in the next month or so.
- FLO – Flowtech Fluidpower Loss of 26%
- PCF – PCF Group PLC Loss of 37%
- HLMA – Halma PLC Gain of 78%
Dividends received on
- Ashtead Group PLC
- Solid State PLC
BUYS – MWE, ARC, BOO, AFHP, TAM, IDHC, BOO
I have been watching for a chance to buy more of small cap wireless experts MTI Wireless edge but unfortunately they have just been tipped by Simon Thompson of the Investors Chronicle so I cant see a better price coming for now so went ahead (fear of missing out!) Paid 48p which is 38% more than I paid previously.
Bought more of Arcontech at £1.68 they have drifted down to these levels on no news and fears of long protracted sales cycle so I jumped in again for the fifth time and bought more on the 2nd of October as they announced a small contract with a bank showing for me that the new sales team and sales activity may bare fruit eventually. Additional revenue after the latest deals is around £100K small figures but lots of operational gearing here.
Can you believe I am still buying BooHoo! 2 more buys at £3.51 and at £2.34 as volatility continues hopefully this won’t all end in tears! (Boo Hoo get it?)
Added to AFH Financial Group as I am happy with this IFA consolidator and wanted to increase my position same goes for Tatton Asset Management both now top 10 holdings.
This is my fourth buy into Integrated Diagnostic Holdings as profit fell 19% as a result of Covid restrictions but I still think this is a great little company led by a very smart lady who holds over 25% of the company . Have a look at their quality metrics below and they also pay a a decent dividend. Net Cash on balance sheet. I think investors are put off by the geographies in which they operate (Egypt, Sudan, Jordan) but I believe they will be a steady earner as the growing middle classes continue to invest in their health and well being and use IDHC for tests and Scans.
SELLS – CHH, JLG, 4BSB
Sold Churchill China see notes in June.
Sold John Laing Group to reduce the number of small low conviction holdings now classed as a sucker stock with Stockrank dropped to 10 on stockopedia! Dividend still to come. Loss of 7.2%
4basebio Takeover completed this month banking a gain of 17.3 % which was ok but I would rather remained part of its future.
Dividends received on
- Halma PLC
- Integrated Diagnostic Holdings PLC
- H & T Group PLC
- Arcontech Group PLC
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So that is all that I have been up to over the summer! At least now I am in profit for the year but not by a lot hopefully the trend will continue and I can finish the year with a more meaningful profit. I have some residential property which returns between 4 and 6% so I would really like to beat or at least match that this year.
I have started reading Free Capital by Guy Thomas looks like a good read so far, you can click on the picture below to find it on Amazon (Affiliate Link so I might get a penny or two if you buy through there)
“I hope you have found reading this useful just to see what someone else is doing in the current market… Please add you comments below or Tweet your support. This has taken quite some time to pull together so your support, encouragement and criticisms are welcome!“
Below are my portfolio weightings etc from stockopedia for your interest
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