Meeting:

Monthly Meeting & AGM - July 2003

 

Held at:

The Lamb, Nantwich

Date:

26th July 2003

 

 

Time:

17:30 – 19:30

Prepared by

Dave G

 

Chairperson:

Simon B

 

Present:

Chris B

 

 

Adrian T

 

 

Richard W

 

 

Simon B

 

 

Dave G

 

 

Kit P

 

 

 

 

Apologies:

none

 

 

 

Chairman’s Acceptance of Minutes

 


_____________________________________________


____ / _____ / ____

Signature

Date

 

 

 

1          NEXT MEETING

Wednesday 20th August 2003.

Venue: The Brocklebank 17:15 – 18:30.

2          Minutes of previous meeting

Accepted.

3          ACTIONS FROM PREVIOUS MEETING

3.1      Actions Closed Since Last Meeting

Ref.

Description & Progress

Status

 

Err … none again

 

3.2      Actions Carried forward to Next Meeting                  

See end of these minutes.

4          Chairman’s Statement

To be done by email.

5          Treasurer’s Report

5.1      Monthly Report Summary

See separate report for detail. 

Highlights/Lowlights  Unit value up from 322.287 to 345.507.  We have £4,836.23 of non-mechanical cash. 

Everyone is now in profit.

5.2      Matters Arising From Report

Letters were distributed to members about registration process for online club banking.  At least one person (RW?) to attempt to register.

5.3      Annual Report

CB presented annual accounts which have yet to be audited.  We are up by £325 on our investments and by £2758 on overall assets.

6          PORTFOlio Management

6.1      Mechanical Portfolio

TDG purchased last month.  No changes this month.  Only Mowlem passes the filters this month so if same happens next month we could end up with no purchase.

Current holdings are …

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

TDG

HOLD until June 2004

 

6.2      Monthly Reports and Recommendations

Fundamental Portfolio:-

CodaSciSys

HOLD

Mothercare

HOLD

 

Fulcrum was sold last month.

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.

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

The following is the summary of stop loss positions for each stock with a defined ‘stop-loss’.  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.

A discussion took place on whether or not to sell Mothercare (as it has now risen 60% and isn’t looking cheap by typical valuations) or to revise the stop loss to be tighter.  Discussion ended with agreement to leave trailing stop loss at the existing 15% threshold.

 

Stock

Reportee

“High” Price

Stop Loss (based on the “high”)

Exit Criteria

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

165.5

141p

Invoke vote on a sell proposal immediately following a bid announcement.  Otherwise,  sell on 15% trailing stop loss

CAPE

N/A (speculative)

40p

32p

20% trailing stop loss

 

6.4                              New Buy Proposals

No new buy proposals. 

Next month is the Strategy review.  We should consider initiating a second mechanical portfolio to make use of our cash pile using a different set of criteria.  All to think about prior to annual strategy review (August).

It was agreed that for the fundamental portfolio, it should not be required to fully complete a buy proposal form before making a suggestion for purchase to the club.  A buy proposal form would need to be completed before purchase but partially completed forms could be circulated to members between meetings for consideration and further input prior to meetings.

7          Lucky Llama competition

A pretty flat month all round.

Wooden spoon this time to Simon, down 1.9%. This is the largest monthly loss
any of us have had so far this competition - quite remarkable really!

Dave's 'safe' option TDG proved to be anything but and despite Mothercare's
rise he was down 1.0%.

Adrian dropped by 0.9% with a rise in Lloyds offset by a fall in Scottish &
Newcastle.

Richard was up 0.7%. Would have been rather more if the prices had been taken
from Thursday's close rather than Friday - Anite issued some poorish results
(actually they may prove to be OK in the longer term but the shares dropped by
9%).

Chris rose by 0.8%. No huge moves, the best being from Domino Printing.

And this month's winner is Kit's one pony trick portfolio again. Corus's rise
of less than a penny was enough to give him a 1.6% rise and 5 quid!

 

Overall positions are:-

Dave G

£132,691.57

Simon B

£127,928.48

Richard W

£126,095.77

Kit P

£121,530.03

Chris B

£121,095.53

Adrian T

£105,378.33

 

Portfolio changes for the coming month are Dave selling Mothercare to buy BskyB, and Simon buying Photo Me.

7.                         Competitions

Our entry for July’s FTSE Flyer was BskyB.

For our website, we should put up the articles run in the Mirror and the Independent from when we won those competitions.  Dave to scan them in.

Additionally, the appearance on Radio Stoke was possibly taped by Adrian B.  Dave to contact Adrian B to see whether he still has a copy.

8.                         Resignations and Elections of Officers

Bank                     retain Bank of Scotland

Broker                            retain Charles Schwab

Chairperson           Adrian T

Treasurer              Chris B

Secretary               Dave G

Auditors                Richard W and Simon B

Webmaster            Dave G

Webmaster Support Kit P

 

Actions carried forward to next meeting

Ref.

Description & Progress

Target Date

RW/0620/01

RW to investigate CFD service

0716: No progress

20/08/2003

CB/0620/02

CB to investigate tax scheme changes

0716: Still needs details from Simon B, Kit P and Dave G

20/08/2003

SB/0716/01

Issue chairman’s annual statement via email

20/08/2003

CB/0716/02

Ensure that accounts are submitted for audit

20/08/2003

RW/0716/03

Attempt to register for the club on-line banking

20/08/2003

ALL/0716/04

Consider different mechanical selection criteria for a new mechanical portfolio

20/08/2003

DG/0716/05

Scan in the articles from our competition wins

20/08/2003

DG/0716/06

Contact Adrian B about the tape of the Radio Stoke appearance

20/08/2003

 
 
Proposed agenda for NEXT meeting.
 
RSIC Monthly Meeting – 20 August 2003 between 17:15 and 18:45

Venue: The Brocklebank

1.     Date of Next Meeting (4 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 (1 min)
[Any comments on minutes from previous meeting

4.     Actions from last meeting (20 mins)
[Progress on actions]

5.     Treasurer's Report (10 mins)

6.     Portfolio Management (30 mins)

6.1. Mechanical Portfolio

6.2. Monthly Report for each Company in Fundamental Portfolio

6.3. Latest sell conditions for each share held

6.4. Watchlist and New Buy Proposals

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

8.     Competitions (10 mins)

9.     AOB