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Meeting: |
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17:15 – 18:50 |
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Chairperson: |
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Present: |
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Geoff O’F |
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Richard W |
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Chris B |
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Adrian B |
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Present: |
Kit P |
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Chairman’s Acceptance of Minutes |
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Signature |
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The minutes from the monthly meeting of 21st December 1999 were accepted[1].
17:00 – 19:30 10th February 2000 – Venue: The Crewe Arms. The beer may be a bit more expensive but RW will buy if necessary!!!
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Ref. |
Description & Progress |
Target Date |
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CB/1221/01 |
Change format of Treasurer’s report to show Cash-In-Hand and also show the share prices of our holdings. |
CLOSED |
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CB/1221/02 |
Claim £5.35 expenses |
CLOSED |
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DG/1221/03 |
Update Buy Proposal Form template to show what sparked initial interest and to show dividend yields. |
CLOSED |
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CB/1221/04 |
Arrange purchase of 1000 shares in TOTAL SYSTEMS |
CLOSED |
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CB/1221/05 |
Arrange purchase of approx £1000 of PARITY shares |
CLOSED |
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CB/1221/06 |
Arrange purchase of approx £400 of ATLANTIC CASPIAN shares |
CLOSED |
See end of these minutes
CB supplied his report.
The report showed net total assets of £10596.46 and unit value of 383.094p.
The current net value if realised on the Science Systems shares was calculated as £1864.96 (a profit of £1123.82 (or 125% APR) so far on the deal).
The current net value if realised on the ARM Holdings shares was calculated as £4978.84 (a profit of £4469.35 (or 910% APR) so far on the deal).
Three purchases had been made since the last meeting.
The current net value if realised on the Total Systems shares was calculated as £1058 (a profit of £247.02 (or 695% APR) so far on the deal).
The current net value if realised on the Parity shares was calculated as £938.70 (a loss of -£60.18 (or -244% APR) so far on the deal).
The current net value if realised on the Atlantic Caspian shares was calculated as £299.32 (a loss of -£100.68 (or -1021% APR) so far on the deal).
Our £1000 prize money from the November Mirror competition has now been deposited.
CB noted that there was a £10.81 discrepancy in the accounts but this could be due to a dividend and interest having been paid since the last statement CB had received. RW stated that he now had a Charles Schwab internet password and could get a statement to check whether the discrepancy of £10.81 was accounted for by dividends and interest (it was known that Science Systems had paid a dividend since the last meeting).
CB proposed a change to rule 9(a) in the Rules of the Club to clarify how the club’s asset valuation was calculated. After discussion, the proposed new wording was as follows:-
“The club’s assets shall be valued monthly by the treasurer, normally within 2 business days of the club meeting, and a report shall be presented at the meeting. The value of investments shall be based on ‘middle’ closing prices in the Financial Times or other reliable source of stockmarket information and will be adjusted to be a reasonable estimate of net realisable value (i.e. reductions will be made for spread and selling expenses).”
The proposal was carried unanimously. DG to revise and re-issue Rules document.
All calculations of club assets to date are regarded as correct subject to audit.
RW supplied his report.
Summary of positions :-
|
Who |
Change
last 3 weeks |
Total
|
Change
overall |
|
Adrian |
0.17% |
£4863.35 |
-2.73% |
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Chris |
2.13% |
£6894.39 |
37.89% |
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Dave |
4.76% |
£7479.47 |
49.59% |
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Geoff |
-3.64% |
£4233.11 |
-15.34% |
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Kit |
0.55% |
£6170.39 |
23.41% |
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Richard |
-4.9% |
£8699.34 |
73.99% |
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Average |
-0.21% |
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27.8% |
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FTSE 100 |
-3.27% |
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23.92% |
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FTSE All Share |
-2.1% |
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26.35% |
DG was awarded the llama (though not physically due to it having just been passed to RW for last month’s award).
RW noted that our collective average was beating the FTSE 100 and FTSE All Share which was a very creditable performance.
All have until end of Friday 14th January to send in buy/sell requests to be processed at the weekend.
RW stated that he would probably sell his AEA, Rentokil and London Clubs holdings and buy into Tibbett and Britten, Exchange and one other. CB stated that he would possibly sell out half his Atlantic Telecom holding and buy into C&W. DG stated that he would sell out of Aukett Associated due to it having fallen below 17.5% stop-loss and buy Brown & Jackson as tipped by his spreadsheet.
Both ARM and Total Systems had dropped below 20% stop-loss since last meeting (though ARM had never actually closed below its stop-loss value). Each trigger had provoked a discussion but had resulted in a “hold” decision.
CB presented a buy proposal for Cable and Wireless. After discussion, a purchase was agreed in principle but the amount to invest deferred until completion of item 10 on the agenda (see below).
No other buy proposals were presented though RW had been considering TIBBETT & BRITTEN and DG had intentions to investigation three investment trusts (BAILIE GIFFORD SHIN NIPPON, FLEMING JAPAN, INVESCO CONTINENTAL SMALL COMPANIES).
No sell proposals.
A discussion took place on what could/would cause us to sell a holding. It was agreed that the current stop-loss trigger for a mandatory sell proposal should continue as it was an excellent means of ensuring that a discussion took place rather than allowing a price to drift downwards unchecked. It was also agreed that if ever a stock was below its stop loss value at the time of a club meeting (not the case this time) then we should have a further discussion on that stock at the meeting.
Whilst it was accepted that selling on a change in fundamentals was sensible, it was likely that any significant change in fundamentals would send the share price below our stop loss trigger so a discussion would be provoked in any case
Other than that, it was agreed that a good reason to sell is if there is a better proposal to place the money elsewhere.
DG had entered the Mail on Sunday competition with STANELCO as our tip for the highest climbing stock during January.
DG expected the Mirror competition to be in either January 12th or January 19th Mirror so would look out for it. As we won the competition last time it is important that we try to defend our title!
Other competitions that might be of interest to club members (as opposed to being open to entries as a club) were the on-line competition in www.investmentchallenge.com/ukinvest as mentioned in RW’s recent Chairman’s Statement email. This is free to enter, runs till March 3rd and has a £30000 first prize. Object is to invest a fantasy £500k and get best return before 3rd March.
Another competition is available for entry via January’s edition of Money Observer and each of the January issues of the Observer newspaper. Multiple entries are permitted with each costing £1. Prize is £25000. Object is to pick the best performing 5 stocks over year 2000 out of a list of 30. Entries must be in by 2nd February.
We have already spent £400 on the speculative investment in Atlantic Caspian. There is therefore £600 still available out of the total of £1400 cash currently held.
It was agreed that we should spend approximately £200 on improving our education in investing. We could split this money by purchasing a subscription to a share tipping magazine such as TechInvest (which is a technology stocks tip sheet) and purchasing a data feed (such as is provided by Investor Ease product). RW will send off for the January 2000 edition of TechInvest to see what it is like.
RW is currently in a 28 day trial of Investor Ease and is generally impressed. He has compiled a list of faults and will pass these to DG who has just sent off for the trial (as suggested by RW). DG will raise these faults with the suppliers as part of his trial period to see if they can be resolved. Any decision to purchase this product (which would be approx £140 for the year) should be delayed until at least the completion of DG’s trial period.
It was agreed that the £400 of the prize money left over after this should be put into another speculative investment such as another penny stock or warrant. All to consider.
At the end of this discussion, it was accepted that
the £600 remaining prize money out of the £1400 cash-in-hand should be spent
separately from the other £800. This
therefore left £800 available for the Cable and Wireless purchase (see section
7.2 above). It was agreed that CB
should purchase £800 of Cable and Wireless shares.
Actions carried forward to next meeting
|
Ref. |
Description & Progress |
Target Date |
|
RW/0415/05 |
As part of improving the records we keep on companies, set up and maintain a file on Science Systems 0510: No progress 0628: No progress 0726: No progress 0827: No progress 0916: No progress 1019: No progress 1124: No progress 1221: No progress 0111: No progress |
10/02/2000 |
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KP/0827/02 |
Add Annual Reports to list and email to KP 0916: No progress 1019: No progress – DG has also obtained some annual reports since
last meeting so needs to inform KP also 1124: KP to chase 1221: KP to chase all for details of new annual reports 0111: No progress |
10/02/2000 |
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CB/0916/02 |
Increase Market Master direct debit to reflect recent increases in subscriptions 1019: Awaited any late requests for changes to subscriptions before
increasing direct debit. 1124: No progress 1221: No progress 0111: No progress |
10/02/2000 |
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ALL/1221/07 |
Consider what we could spend some of the Mirror prize money on to improve our education (e.g. books, subscriptions, data, etc.) 0111: Agreed it would be sensible to spend approx £200 on furthering
our education. All to consider what
it could be useful to buy. |
10/02/2000 |
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ALL/1221/08 |
Send details of useful URLs to club members with brief description of each 0111: No progress |
10/02/2000 |
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KP/1221/09 |
Compile and maintain a list of useful URLs 0111: Requires some action on ALL/1221/08 first! |
10/02/2000 |
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CB/1221/10 |
Submit entry to Proshare’s Successful Club of 1999 awards 0111: Entry form drafted (>255% return during 1999) and will be
posted imminently |
28/01/2000 |
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DG/0111/01 |
Revise Club Rules as agreed to have reworded rule 9(a) to clarify how asset valuation is calculated. |
10/02/2000 |
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RW/0111/02 |
Send off for January 2000 edition of TechInvest to see what it is like |
10/02/2000 |
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RW/0111/03 |
Send DG the list of faults found in Investor Ease |
31/01/2000 |
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DG/0111/04 |
Notify Investor Ease suppliers of the faults in the product as part of DG’s trial period (which should commence mid-Jan) |
10/02/2000 |
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CB/0111/05 |
Purchase £800 of Cable and Wireless shares |
14/01/2000 |
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ALL/0111/06 |
Consider a suitable speculative investment for the remaining £400 of Mirror competition prize money. |
10/02/2000 |
[1] Post Meeting Note: Date of the last meeting was shown in the minutes as 31st December 1999. This should have been 21st December 1999.