Meeting:

Monthly Meeting - May 2004

 

Held at:

The Brocklebank, Crewe

Date:

20th May 2004

 

 

Time:

16:50 – 18:10

Prepared by

Dave G

 

Chairperson:

Adrian T

 

Present:

Adrian T

 

 

Richard W

 

 

Kit P (from item 5.6)

 

 

Dave G

 

 

Simon B

 

 

 

 

Apologies:

Chris B

 

 

 

Chairman’s Acceptance of Minutes

 


_____________________________________________


____ / _____ / ____

Signature

Date

 

 

 

1           NEXT MEETING

Thursday 17th June 2004. Venue: The Brocklebank 16:45 – 18:00.

Other future meeting dates agreed:-

Thursday 17th June
Tuesday 20th July (AGM)
--- August yet to be agreed ----
Tuesday 7th September
Monday 4th October
Tuesday 2nd November

All assumed to start at 16:45 in The Brocklebank unless otherwise stated.

2           Minutes of previous meeting

Accepted.

3           ACTIONS FROM PREVIOUS MEETING

3.1          Actions Closed Since Last Meeting

Ref.

Description & Progress

Status

DG/0323/02

Update Strategy document to include the second mechanical portfolio

0421: Draft version sent out for review.  Approved version to be published following the agreement at the April meeting

COMPLETE

DG/0421/01

Convert the Radio Stoke tape into MP3 format

COMPLETE

CB/0421/03

Check broker charges and tiered rates so that valuation formulae can be adjusted as necessary

COMPLETE

DG/0421/04

Produce ISG monthly report for future months

COMPLETE

RW/0421/05

Sell WH Smiths shares

COMPLETE

DG/0421/06

Contact Proshare to see approximately how many clubs enter the Mirror competition

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  Bad month this month.  Unit value down from 461.384 to 445.579.  We have £4,629.07 of non-mechanical cash.

4.2          Matters Arising From Report

Minor correction needed to future reports…..that DG is producing the monthly report for ISG rather than RW.

5           PORTFOlio Management

5.1          Monthly Money Management Checks

The proportion of assets in common UK stock is in the “Too Low” category (53% against strategic minimum of 75%).   Fundamental portfolio was also “Too low” (12% against strategic minimum of 25%).

Purchase proposals for the Fundamental portfolio would address these so are encouraged (see 0 below).

5.2          Mechanical Portfolio

This month is a month for selecting a share for the ‘Growth’ side of the mechanical portfolio.  Top candidate for purchase this month is 4IMPRINT which is in the Support Services sector.  Richard to make purchase of appropriate amount (approx £1030).

The table below now reflects the sell situation for each mechanical holding.  The appropriate sell condition is shown in bold

Company

Portfolio

“Anniversary”

Purchase Price

Target Price

Trailing Stop Loss

High Since Purchase

Target Met?

Sell If Below

Crest Nicholson

Value

Already passed (Apr 2004)

215.50

323.25

32.33

361.25

Yes

328.93

TDG

Value

Jun 2004

199.00

298.50

29.85

228.00

No

298.50

European Motor Hdgs

Value

Aug 2004

172.78

259.17

25.92

210.00

No

259.17

Severfield-Rowen

Value

Oct 2004

323.88

485.82

48.58

410.00

No

485.82

Countryside Properties

Value

Dec 2004

196.70

295.05

29.51

279.00

No

295.05

Wagon

Value

Feb 2005

198.00

297.00

29.70

198.50

No

297.00

Horizon

Growth

Mar 2005

66.50

99.75

9.98

64.50

No

99.75

 

5.3          Monthly Reports For Each Company in Fundamental Portfolio

CodaSciSys

Review took place as one was scheduled for May 2004.
Agreed to HOLD without further review but revise exit criteria slightly to be a ‘pence’ stop loss rather than a percentage stop loss (see table in 0 below)

ISG

HOLD – Not yet met sell criteria (see table in 0 below). 

 

5.4          Speculative Portfolio

Parity

HOLD – not worth selling

Atlantic Caspian

HOLD (especially as it’s delisted !!)

Templeton Emerging

HOLD – underlying share is now below the strike price of the warrants so unlikely that the warrants will be worth anything by the time they expire in September 2004

Cape

HOLD – Not yet met sell criteria (see table in 0 below)

 

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

420

210p

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).

ISG

Dave

193.5

96.75p

Hold for 12 months (September 2004) then review.  Before then, run trailing stop loss of 50% to start from purchase price

CAPE

N/A (speculative)