Meeting:

Monthly Meeting - January 2004

 

Held at:

The Brocklebank, Crewe

Date:

23rd January 2004

 

 

Time:

16:45 – 18:00

Prepared by

Dave G

 

Chairperson:

Adrian T

 

Present:

Adrian T

 

 

Richard W

 

 

Dave G

 

 

Simon B

 

 

Kit P

 

 

Chris B

 

 

 

 

Apologies:

None

 

 

 

Chairman’s Acceptance of Minutes

 


_____________________________________________


____ / _____ / ____

Signature

Date

 

 

 

1          NEXT MEETING

Friday 27th  February 2004.

Venue: The Brocklebank 16:45 – 18:00.

2          Minutes of previous meeting

Accepted.

3          ACTIONS FROM PREVIOUS MEETING

3.1      Actions Closed Since Last Meeting

Ref.

Description & Progress

Status

ALL/0716/04

Consider different mechanical selection criteria for a new mechanical portfolio

0820: Deferred to September meeting

0919: All still to consider

1022: No progress

1121: No progress – see Appendix to the minutes to help

1219: Still needs consideration

0123: See item 5.2 below

COMPLETE

CB/1022/06

Arrange for Club to pay 50% of Richard’s ShareScope subscriptions

1121: Progressing – provision has been made for this in the accounts

1219: Should be transferred once bank details have been provided

COMPLETE

DG/1219/01

Extract Chris’s explanation of the subs calculation and put it into an Appendix to the Club Rules

0123: Version 6 of rules issued for review ahead of meeting and approved at meeting.

COMPLETE

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 402.916 to 433.643.  We have £5042.08 of non-mechanical cash.  Gains in every holding this month.  Total club assets now at a record high of £19378.

4.2      Matters Arising From Report

Form from Barclays Stockbrokers signed to register Adrian T and Simon B as members and to update our standing order.

5          PORTFOlio Management

5.1      Monthly Money Management Checks

Non-mechanical cash was still in the “Too High” category (26% of total assets against strategic maximum of 25%) and the proportion of assets in common UK stock is in the “Too Low” category (72% against strategic minimum of 75%).   Another non-mechanical purchase would address both of these.

5.2      Mechanical Portfolio

No trades scheduled for this month.

Current holdings  …

British Vita

HOLD until February 2004

Crest Nicholson

HOLD until April 2004

TDG

HOLD until June 2004

European Motor Holdings

HOLD until August 2004

Severfield Rowen

HOLD until October 2004

Countryside Properties

HOLD until December 2004

 

Discussion took place as to possible criteria for a second mechanical portfolio.  Richard suggested trying an approach based on the “Cornerstone Growth” strategy as set out in JP O’Shaughnessy’s book “What Works On Wall St”.   It was agreed that Richard should send out details of the suggested criteria and the list of stocks that currently pass the filters.   We would then decide in February precisely which filters and approach to adopt for a proper purchase in March and every 2 months thereafter.   Agreed that this second mechanical portfolio should be run in a similar manner to the first one with a purchase every other month and a holding period of 12 months.  Agreed that we should start the portfolio off with purchase amounts of £1000 until the portfolio becomes full in 12 months time. 

 

5.3      Monthly Reports For Each Company in Fundamental Portfolio

CodaSciSys

HOLD – Review in May 2004 (see table in 5.5 below)

Mothercare

HOLD – not met stop loss.  Dave suggested tightening of stop-loss once share price goes above 400p.  This was agreed (see table in 5.5 below)

ISG

HOLD – Not yet met sell criteria (see table in 5.5 below)

WH Smith

HOLD – Not yet met sell criteria (see table in 5.5 below)

 

5.4      Speculative Portfolio

Parity

HOLD – not worth selling but we took up the rights offer.

Atlantic Caspian

HOLD (especially as it’s delisted !!)

Templeton Emerging

HOLD – not worth selling but look to sell if opportunity arises as the warrants expire next year

London Clubs International

HOLD – not breached trailing stop loss (see table in 5.5)

Cape

HOLD – not breached trailing stop loss (see table in 5.5)

Ashtead

HOLD – not breached trailing stop loss (see table in 5.5)

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

The following is the summary of sell criteria for each stock held within the Speculative or Fundamental portfolios (the Mechanical holdings are dealt with as part of section 5.2 above).  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

CSY

Richard

352.5

176.25p

Hold until at least May 04 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

383

325.55p

15% trailing stop loss switching to a 40p trailing stop loss once share price goes above 400p

ISG

Richard

170

85p

Hold for 6 months (March 2004) then review.  Before then, run trailing stop loss of 50% to start from purchase price

CAPE

N/A (speculative)

68

54.4p

20% trailing stop loss

PTY

N/A (speculative)

88

22p

Revise on taking up the rights offer.  Existing criteria are “Start price 44p. Invoke 15% trailing stop loss once price has doubled, or sell if price falls 50% from purchase (unless not worth selling)”

ACA

N/A (speculative)

20.4

5p

Start price 10.2p. Invoke 15% trailing stop loss once price has doubled, or sell if price falls 50% from purchase (unless not worth selling)

TEMA

N/A (speculative)

57

14.25p

Look for opportunities to sell (though currently not worth selling) as the warrants expire within a year.

LCI

N/A (speculative)

100.25

85.21

15% trailing stop loss

AHT

N/A (speculative)

29

7.25

Start price 14.5p. Invoke 15% trailing stop loss once price has doubled, or sell if price falls 50% from purchase (unless not worth selling)

 

5.6      New Buy Proposals

None

6          Lucky Llama competition

Adrian wins this month with a stunning 36.4% rise in the month.   Current standings after four months are now…..

Simon   

£140,633.29

Dave    

£133,679.88

Adrian  

£126,411.51

Richard 

£118,347.86

Chris

£104,193.55

Kit     

£100,000.00

 

7.                         Competitions

Dave missed the entry again for January and the details were not posted on the website ahead of the closing date.  Dave will try his best to buy the paper next month!!.

8.                         AOB

Kit and Simon asked whether there was any particular reason why there was a limit in the rules of £50 for monthly subscriptions.  It was thought that this may have been due to a constraint within the simplified tax scheme but, as that scheme may no longer exist, the subscriptions may not need to be limited to £50.   Dave to contact Proshare to see whether they know whether there is anything that constrains how much an individual’s subscriptions can be.

Actions carried forward to next meeting

Ref.

Description & Progress

Target Date

SB/0716/01

Issue chairman’s annual statement via email

0820: No progress

0919: No progress

1022: No progress

1121: No progress

1219: No progress

0123: No progress

27/02/2004

DG&KP/0716/06

Contact Adrian B about the tape of the Radio Stoke appearance

0820: No progress

0919: DG has just sent mail to Adrian

1022: Adrian B has the tape – he has said that he will pass it on to Chris or Kit (though Dave has given him his home address so he could post it there)

1121: No progress – Dave to remind Adrian

1219: Kit thinks that Adrian may have given the tape to him – he will check

0123: Kit to contact Adrian B

27/02/2004

KP/1219/02

(changed from ALL/1219/02 at 23/01/204 meeting)

Check to see whether you have a copy (electronic or hardcopy) of the minutes that are missing from the Website.  These are December 2000, August 2001, March 2002, April 2002, May 2002

0123: Nobody could find any electronic copies of the minutes so KP to dig out the hardcopies and scan them in.

27/02/2004

RW/1219/03

Find out which instruments can be traded via our stockbroker

0123: No progress

27/02/2004

RW/0123/01

Send out proposed criteria for 2nd mechanical portfolio and the list of stocks that currently pass those filters

27/02/2004

DG/0123/02

Contact Proshare to see whether they know of a constraint that limits the subscription amounts for club members

27/02/2004

 
 
Proposed agenda for NEXT meeting.
 
RSIC Monthly Meeting – Friday 27th February between 16:450 and 18:00

Venue: The Brocklebank

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