Meeting:

Monthly Meeting - August 2004

 

Held at:

The Brocklebank, Crewe

Date:

17th August 2004

 

 

Time:

17:30 – 18:40

Prepared by

Dave G

 

Chairperson:

Dave G

 

Present:

Dave G

 

 

Kit P

 

 

Richard W

 

 

Simon B

 

 

Apologies:

Adrian T

 

 

Chris B

 

 

 

Chairman’s Acceptance of Minutes

 


_____________________________________________


____ / _____ / ____

Signature

Date

 

 

 

1           NEXT MEETING

Tuesday 7th September 2004. Venue: Brocklebank 16:45 – 18:30.

Other future meeting dates agreed:-

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

SB/0720/01

Send email confirmation of completion of audit of 2003 accounts

COMPLETE

CB/0720/02

Send signed constitution to Helen of Abbey so that we can open our account and get the £1000 prize

0807: Complete but see new action SB/0807/01

COMPLETE

CB/0720/04

Send Standard Form of Agreement to tax office

COMPLETE

RW/0720/05

Send email confirmation of completion of audit of 2004 accounts

COMPLETE

RW/0720/06

Purchase Sportingbet for Mechanical portfolio

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  A drop this month.  Unit value drop from 463.529 to 454.213.  We have £4,774.81 of non-mechanical cash.

4.2          Matters Arising From Report

None

5           PORTFOlio Management

5.1          Monthly Money Management Checks

The proportion of assets in common UK stock is in the “Too Low” category (65% against strategic minimum of 75%).   Fundamental portfolio was also “Too low” (14% against strategic minimum of 25%).

Purchase proposals for the Fundamental portfolio would address these so are encouraged.

5.2          Mechanical Portfolio

This month is a month for selecting a share for the ‘Value’ side of the mechanical portfolio to replace European Motor Holdings.  Top candidate (indeed only candidate) for purchase this month is Alfred McAlpine.  Richard to make purchase of appropriate amount.

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

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

69.00

No

99.75

4Imprint

Growth

May 2005

141.50

212.25

21.23

144.00

No

212.25

Fyffes

Value

Jun 2005

117.34

176.00

17.60

119.50

No

176.00

Sportingbet

Growth

Jul 2005

99.05

148.55

14.86

99.05

No

148.55

 

5.3          Monthly Reports For Each Company in Fundamental Portfolio

CodaSciSys

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

ISG

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

Parity

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

 

5.4          Speculative Portfolio

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. That said, agreed that it was not worth selling them as the most we could lose at current valuation was approx £75 whereas we could make gains if the underlying share price picks up.

Cape

HOLD – Not yet met sell criteria (see table in 5.5 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 Nov 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 210p to start from purchase price (based on mid-price due to large spread). (High = 420.0p)

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

PTY

Adrian (from July)