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17:35 – 19:00 |
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Adrian B |
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Dave G |
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Geoff O’F |
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Kit P |
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Richard W (from
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Apologies: |
Richard W (to item
5) |
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Distribution: |
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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 19th April were accepted.
17:00 – 19:00 Tuesday 27th June. Venue Crewe Arms
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Ref. |
Description & Progress |
Target Date |
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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 0216: No progress 0322: No progress 0419:
to close? 0525: Dropped this action – DG will put
known list of annual reports onto RSIC website – everyone to send details to
DG if they obtain new reports (see action DG/0525/01). |
DROPPED |
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KP/1221/09 |
Compile and maintain a list of useful URLs 0111: Requires some action on ALL/1221/08
first! 0419: passed to DG 0525: Action dropped – see action
DG/1221/08 (previously ALL/1221/08) |
DROPPED |
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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 coincide with next club meeting.
Item on agenda to be change of bankers. 0419: Awaiting signatures 0525: Closed as a result of EGM 25th
May 2000 |
CLOSED |
See end of these minutes
CB supplied his report (subsequently corrected to reflect the additional purchase of 53 Science Systems shares as part of the rights issue).
The (corrected) report showed that the llama is sick with net total assets having fallen to £8883.69 and unit value of 299.7p.
The current net value if realised on the Science Systems shares was calculated as £2746.00 (a profit of £1,718.66 (or 105% APR) so far on the deal).
The current net value if realised on the ARM Holdings shares was calculated as £3551.00 (a profit of £3,041.51 (or 446% APR) so far on the deal).
The current net value if realised on the Total Systems shares was calculated as £708.00 (a loss of £102.98 (or -30% APR) so far on the deal).
The current net value if realised on the Parity shares was calculated as £450.29 (a loss of £548.59 (or -137% APR) so far on the deal).
The current net value if realised on the Atlantic Caspian shares was calculated as £289.50 (a loss of -£110.50 (or -69% APR) so far on the deal).
The current net value if realised on the Cable & Wireless shares was calculated as £748.00 (a loss of £28.00 (or -10% APR) so far on the deal).
The current net value if realised on the Tibbett & Britten shares was calculated as £996.00 (a loss of £1.70 (or -2% APR) so far on the deal).
CB to fill in tax form 1A5 similar to last year though it will be more complicated given the Workplace sale and the receipt of some dividends.
RW had emailed his report. KP takes the Llama yet again with a gain of 3.91% with only DG having also made a profit (of 1.1%) during the period.
All have until end of Friday 26thst May to send in buy/sell requests to be processed at the weekend.
All holdings (other than the just purchased Tibbett & Britten) had invoked the 20% stop-loss trigger so discussion on each was necessary. It was again agreed generally that whilst market would continue to be volatile, it was still worth hanging on. Same principles as discussed as part of the 22nd March meeting were again raised (see those minutes for commentary). However, taking each stock in turn…..
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Parity |
Never sold their contracting business and have also issued a profits warning. Whilst fall has been pretty significant (down over 50% since purchase) current realisable value is less than £500 so isn’t necessarily worth selling – might as well hold on for recovery knowing that most we could further lose would be less than £500. HOLD |
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Atlantic Caspian |
Is only worth less than £300 to us if we sell now so, again, worth holding to see if the upturn eventually happens. Not worth selling out just for £300. HOLD |
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ARM Holdings |
Some competitors to ARM are starting out but ARM has more or less captured the market at the moment and we are all confident that ARM is a winner. The recent drop in price of ARM shares therefore represents a good buying opportunity rather than a selling opportunity. HOLD. |
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Science Systems |
Still has potential to be very big. Held AGM yesterday and things are going as planned. No change in fundamentals. HOLD. |
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Cable & Wireless |
Is making money and still reported as being sound. Has been hit by Telecomms, Media, Technology (TMT) slump but no particular reason to think that C&W shouldn’t be a success and come through any shakedown. HOLD |
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Total Systems |
They announced a web commerce venture earlier this year and put up a web site in April. However, the contents of this web site hasn’t changed which could be a sign that it isn’t going anywhere. If we were to sell anything in particular (if only to break the possible psychological barrier to selling) then this could be the one to go. Agreed that it may be worth selling this share if price rises to above 90p for no discernible reason. SELL AT 90p |
No formal buy proposals submitted though RW had suggested Templeton warrants as a speculative punt. This had been arrived at largely via number crunching but it did offer exposure to emerging markets and has good gearing, reasonable liquidity and a relatively long time to run – all good qualities.
Taking the drop in ARM price as a further Buy opportunity was discussed though it was recognised that ARM already makes up more than 40% of our portfolio’s value. It was also recognised that even though buying more ARM would be an ADD rather than strictly speaking a Buy, there still ought to be a formal buy proposal submitted before any purchase be made.
All covered as part of 6.1 above.
The discussion of when to sell Total Systems (see above) had identified the benefit in thinking at the Buy stage of what price we’d like to sell at and when – i.e. an investment target level. DG to add a box to the Buy Proposal form to allow this to be recorded.
DG recalled an article on the Motley Fool site discussing the pros and cons (mainly cons) of a strategy based on selling when the price doubles. DG to find this article and distribute it.
Express competition had been cancelled due to a printing error in some regions of UK.
Our Mail on Sunday tip for May had been Surgical Innovations but it’s lack of spectacular (indeed any) price movement makes it unlikely to be the winner.
We hadn’t entered the Independent competition (B/Bear) for May as DG had missed the copy of the Independent with the entry printed.
Mirror competition was entered earlier in the week.
Next competition dates are all in early June.
None
Actions carried forward to next meeting
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Ref. |
Description & Progress |
Target Date |
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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 0419: No progress 0525: No progress. It was
remarked upon that it wasn’t big or clever to have actions lasting longer
than a year! |
27/06/2000 |
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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 0216: No progress 0322: No progress 0419: No progress 0525: No progress but agreed that this action would be progressed as
soon as bankers had been changed. |
27/06/00 |
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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. 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. 0419: RW would like to wait for an update to ShareScope in order to
re-evaluate packages. 0525: RW email had stated that ShareScope was not worth pursuing but
proposed that we purchase InvestorEase.
Proposal was that RW pays half the cost and the club pays the other
half. This was unanimously
agreed. RW to arrange purchase (see
action RW/0525/02). KP had noticed
that Motley Fool had advertised an investment information manual which the
club may wish to purchase. KP to
investigate further. |
27/06/00 |
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DG/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 0419: DG to put links on RSIC Website 0525: No progress since last meeting |
27/06/00 |
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ALL/0111/06 |
Consider a suitable speculative investment for the remaining £400 of Mirror competition prize money. 0216: No progress 0322: No progress 0419: No progress 0525: RW email had suggested looking at Warrants and Templeton in
particular. Agreed to discuss as part
of item 6.2 in the minutes. |
27/06/00 |
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DG/0525/01 |
Put annual reports list onto website |
27/06/00 |
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RW/0525/02 |
Arrange purchase of InvestorEase, half of cost being covered by the club. |
27/06/00 |
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CB/0525/03 |
Complete tax form 1A5 for the club |
30/09/00 |
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CB&RW/0525/04 |
Sell Total Systems if price rises to >90p with no discernible reason to account for it. |
27/06/00 |
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DG/0525/05 |
Add a new box to the Buy Proposal form to allow the Target Price level to be recorded. |
27/06/00 |
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DG/0525/06 |
Find and distribute the Motley Fool article about the “selling when the price doubles” strategy |
27/06/00 |