Meeting:

Monthly Meeting - June 2003

 

Held at:

The Brocklebank

Date:

20th June 2003

 

 

Time:

17:30 – 18:30

Prepared by

Chris B

 

Chairperson:

Chris B

 

Present:

Chris B

 

 

Adrian T

 

 

Richard W

 

 

 

 

 

 

 

 

 

 

Apologies:

Simon B, Dave G, Kit P

 

 

 

Chairman’s Acceptance of Minutes

 


_____________________________________________


____ / _____ / ____

Signature

Date

 

 

 

 

1          NEXT MEETING

…Is the Annual General Meeting.

Date: to be arranged via email .

Venue: The Lamb.

Food: Yes.

2          Minutes of previous meeting

Accepted.

3          ACTIONS FROM PREVIOUS MEETING

3.1      Actions Closed Since Last Meeting

Ref.

Description & Progress

Status

 

Err … none

 

3.2      Actions Carried forward to Next Meeting                  

See end of these minutes.

4          Treasurer’s Report

4.1      Monthly Report Summary

See separate report for detail. 

Highlights/Lowlights  Unit value up from  318.617 to 322.287.  We have £4,134.38 of non-mechanical cash. 

Charles Schwab has a CFD service – maybe worth considering experimental investment via this mechanism for geared investment.  Market/sector risk could be reduced by pairing – i.e. taking opposite positions in an undervalued and an overvalued company so profit arises if price difference narrows.  RW to read intro. Pack.

4.2      Matters Arising From Report

RW thinks (from MF discussions) that the simplified tax scheme may have been scrapped.  CB to investigate.

5          PORTFOlio Management

5.1      Mechanical Portfolio

We will be selling Savills, looks to have slightly underperformed FTSE.  Currently 22nd on unfiltered list (fails forecast earnings filter).

Replacement likely to be TDG, RW will rerun over weekend to confirm selection.

Portfolio up 13.4% (inc. dividends) cf. FTSE down 20.6 % (exc. Dividends) over year.

Current holdings are …

Savills

To be SOLD

Woolworths

HOLD until August 2003

Mowlem (John)

HOLD until October 2003

WH Smith

HOLD until December 2003

British Vita

HOLD until February 2004

Crest Nicholson

HOLD until April 2004

 

5.2      Monthly Reports and Recommendations

Fundamental Portfolio:-

Fulcrum

SELL

CodaSciSys

HOLD

Mothercare

HOLD

 

CodaSciSys: new CE (internal appt).  Down following trading statement and forecasts revised downwards.  Continue to monitor.

Fulcrum: RW to sell on Monday unless mid-price has risen back to 8p.

The Fundamental portfolio is still underweight, running at approx 20% of total club net value whereas strategy calls for it to be between 25% and 50%.

 

Speculative Portfolio:-

Parity

HOLD

Atlantic Caspian

HOLD

Templeton Emerging

HOLD

London Clubs International

HOLD

Cape

HOLD and introduce 20% trailing stop loss from recent high starting immediately.

 

 

 

 

5.3      Stop Loss / Sell Criteria (as of date of treasurer’s report)

The following is the summary of stop loss positions for each stock in the “Fundamental” sub-portfolio.  The stop loss is invoked against the “end of day” price, but the sell decision may wait for the opening price to avoid rogue trades at the end of day.

Stock

Reportee

“High” Price

Stop Loss (based on the “high”)

Exit Criteria

FUL

Dave

14.5

8

Sell if under 8p.  Commence 25% trailing stop loss once above 20p

CSY

Richard

325

162.5

Hold until at least Nov 03 and then review;

In addition, review following any trading or results statement that expects / reports a fall in either revenues or profits over the previous reporting period;

Trailing stop loss of 50% to start from purchase price (based on mid-price due to large spread).

MTC

Dave

142

75p

Invoke vote on a sell proposal immediately following a bid announcement.  Otherwise,  sell if price is below 75p or start a 15% trailing stop loss on reaching 160p  (it was agreed to change the exit criteria to the above in the light of the sharp rise (40% since purchase).

 

5.4                              New Buy Proposals

No new buy proposals.  Now market is showing signs of stability / growth we should be thinking about more buy proposals.

RW suggested adding more money to the mechanical portfolio, either as a money amount or a lump sum.  Another alternative would be a competing mechanical 2 portfolio using a different set of criteria.  All to think about prior to annual strategy review (August).

6          Lucky Llama competition

Another successful month with our average holdings more than doubling the FTSE

All Share gain for the third month in a row.  Kit was the only one to not share in the gains, down a mere 1%.  Adrian continued his slow but steady progress, up 2.4%.  Dave and Chris were very close up 6.4% and 6.5% respectively.  It was also close at the top with Simon up 8.5% and Richard up 8.9%. 

 

We're now at the half way stage of this competition and Dave still has a healthy lead, but not quite so much as last time:

 

Overall positions are:-

Dave G

£134,062.38

Simon B

£130,372.84

Richard W

£125,213.50

Chris B

£120,138.61

Kit P

£119,606.53

Adrian T

£106,295.33

 

It was agreed that a 1% penalty on last decisions would apply, starting from next competition.

7.                         Competitions

DG missed it!


Actions carried forward to next meeting

Ref.

Description & Progress

Target Date

2006/1

RW to investigate CFD service

July 2003

2006/2

CB to investigate tax scheme changes

July 2003


 
Proposed agenda for NEXT meeting.
 
RSIC Annual General Meeting – ?? July 2003 between 17:15 and 18:45

Venue: The Lamb

1.     Date of Next Meeting (2 mins)
[Agree a date for the next meeting]

2.     Agenda Changes? (2 mins)
[Any items for AOB or any suggested reordering of agenda?]

3.     Minutes of last meeting (2 mins)
[Any comments on minutes from previous meeting

4.     Actions from last meeting (2 mins)
[Progress on actions]

5.     Chairman’s Statement (10 mins)

6.     Treasurer's Report (10 mins)
- monthly report
- annual statement

7.     Portfolio Management (30 mins)

7.1. Mechanical Portfolio

7.2. Monthly Report for each Company in Fundamental Portfolio

7.3. Latest sell conditions for each share held

7.4. Watchlist and New Buy Proposals

8.     Lucky Llama Competition (10 mins)
[Latest positions and any new buy/sell decisions]

9.     Competitions (10 mins)

10. Resignations and Elections of Officers
- Chairman
- Secretary
- Treasurer
- Auditors
- Banker
- Broker
- Webmaster

11. AOB