Meeting:

Monthly Meeting -March 2000

 

Held at:

Crewe Arms, Crewe

Date:

22nd March 2000

 

 

Time:

17:15 – 18:50

Prepared by:

Dave G

 

Chairperson:

Richard W

 

Present:

Chris B

 

 

Adrian B

 

 

Dave G

 

 

Kit P

 

 

Richard W

 

 

 

 

Apologies:

Geoff O’F

 

 

 

 

 

Distribution:

As above

 

 

Chairman’s Acceptance of Minutes

 


_____________________________________________


____ / _____ / ____

Signature

Date

 

 

 

 

1.              Minutes of previous meeting

The minutes from the monthly meeting of 16th February should have stated that the venue was the North Stafford Hotel rather than the North Staffordshire Hotel and that there were apologies from Geoff O’F..

2.              Next Meeting

17:00 – 19:30  Wednesday 19th April.  Venue Crewe Arms


3.              Actions from previous meeting

3.1            Actions Closed since last meeting

Ref.

Description & Progress

Target Date

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)

0216: Trial period not yet complete

DROPPED

ALL/0216/01

Review amended version of Club Rules to approve wording of rule 9(a)

CLOSED

DG/0216/03

Check out possibility of registering www.rsic.co.uk as a domain name for the club

0322: Web site of www.rsic.co.uk now set up (though still very much "under construction".

CLOSED

 

In discussing the revision to the club rules (see ALL/0216/01 above), it was agreed that the start of Rule 9a should be changed from "The club's assets shall be valued monthly by the treasurer, normally within 2 business days of the club meeting......" to "The club's assets shall be valued monthly by the treasurer normally no more than 2 business days prior to the club meeting......".  DG to amend rules accordingly.

3.2            Actions Carried forward to Next Meeting                                  

See end of these minutes

4.                           Treasurer’s Report

4.1            REPORT SUMMARY

CB supplied his report.

The report showed net total assets of £13,541.53 and unit value of 475.655p.

The current net value if realised on the Science Systems shares was calculated as £3256.00 (a profit of £2514.86 (or 240% APR) so far on the deal).

The current net value if realised on the ARM Holdings shares was calculated as £5805.00 (a profit of £4165.00 (or 893% APR) so far on the deal).

The current net value if realised on the Total Systems shares was calculated as £768 (a loss of £42.98 (or -22% APR) so far on the deal).

The current net value if realised on the Parity shares was calculated as £1401.10 (a profit of £490 (or 179% APR) so far on the deal).

The current net value if realised on the Atlantic Caspian shares was calculated as £279.68 (a loss of -£120.33 (or -134% APR) so far on the deal).

The current net value if realised on the Cable & Wireless shares was calculated as £1079.20 (a profit of £303.20 (or 210% APR) so far on the deal).

4.2            MATTERS ARISING FROM REPORT

CB noted that the Nothing Ventured web site www.nothing-ventured.com was very good.

5.              Lucky Llama competition

RW had not sent out his report but thought that GO'F had won the llama.[1]

All have until end of Friday 24th March to send in buy/sell requests to be processed at the weekend. 

6.              Portfolio Management

6.1            Stop Loss Triggers

Total Systems, ARM Holdings, Parity and Atlantic Caspian were all below 20% stop-loss trigger so a mandatory discussion took place. 

It was agreed that selling on stop-loss alone may not be appropriate but that the stop-loss trigger was necessary to provoke discussion.  There was some concern that we may never sell anything and there could be a psychological barrier to making our first real sale (Workplace Technologies not really being a true sale decision).

Considering ARM in particular, now may be a bad time to sell and identifying a higher price at which to sell out half our holding may not be sensible as we'd then be selling a rising stock.  Need to also consider that ARM will split soon (likely to be agreed on 19th April). 

General agreement was that if the technology bubble bursts,  it will take a lot of stocks with it but those that survive will be much higher in the long term so are probably undervalued now.  Consolidation WILL occur but how fast or savage it is remains to be seen. If there is a slump then maybe we should go liquid.

Again agreed that the only 2 real reasons for selling should be:-

a)      if we need the money

b)      if there's a better investment elsewhere (including cash)

A possible third reason could be when there's too much risk in one or two dominant stocks in our portfolio.  It was recognised that while we continue to put additional money into our club, the proportion of our portfolio held in ARM (or any other stock for that matter) generally reduces.

Decision therefore taken to HOLD.

6.2            New Buy Proposals

Not discussed

6.3            Sell Proposals

No sell proposals.

7.              Competitions

Not discussed

8.              AOB

None


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

0216: No progress

0322: No progress

10/05/2000 !!

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

0216: No progress

0322: No progress

19/04/2000

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

0216: No progress

0322: No progress

19/04/2000

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.

0216: RW looked at TechInvest newsletter and it is OK but unlikely that we will act on its tips straight away.  Consideration of purchase of InvestorEase is a possibility though ShareScope is worthy of a look into also.  Agreed to carry  forward action to next meeting

0322: Financial Freebies website has some potential ideas.  DG said that he was considering whether to attend one of the recently advertised Proshare seminars.  The Leeds one is 16th April.  All agreed that the club should cover the cost of this (£19.50) if DG wished to attend, as long as he wrote a report to summarise the seminar.

19/04/2000

ALL/1221/08

Send details of useful URLs to club members with brief description of each

0111: No progress

0216: CB and RW have suggested some useful URLs.  RW added that if you register (free) with www.fool.co.uk, the “MyFool” page presents some useful links.

0322: DG supplied a handout from SHARES magazine with some reviewed websites but action is still outstanding

19/04/2000

KP/1221/09

Compile and maintain a list of useful URLs

0111: Requires some action on ALL/1221/08 first!

19/04/2000

ALL/0111/06

Consider a suitable speculative investment for the remaining £400 of Mirror competition prize money.

0216: No progress

0322: No progress

19/04/2000

CB/0216/02

Begin process of transferring current account to Fleming Premier Banking

0322: DG noted that rules state that bankers cannot be changed unless through an extraordinary general meeting.  Agreed to hold an EGM on 19th April to co-incide with next club meeting.  Item on agenda to be change of bankers.

19/04/2000

DG/0322/01

Amend wording of rule 9a of club rules.  Rules to become approved subject to application of the amendment.

19/04/2000

 



[1] It later proved that Kit Pimm had won the llama.