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Meeting: |
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Held at: |
The Office, and Casa Tapas restaurant, Crewe |
Date: |
18th
July 2005 |
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Time: |
17:15 – 20:30 |
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Prepared by |
Dave G |
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Chairperson: |
Adrian T |
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Present: |
Adrian T |
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Chris B |
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Dave G |
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Kit P |
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Richard W |
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Simon B |
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Apologies: |
None |
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Chairman’s Acceptance of Minutes |
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Signature |
Date |
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Proposed dates for future meeting are as below. Each to be confirmed at the preceding meeting:-
Wednesday 10th August
Monday 19th September
Monday 17th October
Monday 21st November
Monday 19th December
The date of the next meeting was incorrect. Otherwise, accepted.
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Ref. |
Description & Progress |
Status |
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AT/0720/03 |
Issue Chairman’s annual statement via email 0817: No progress 0907: No progress 1004: No progress 1102: No progress 1207: No progress 0106: No progress 0222: No progress 0323: No progress 0420: No progress 0516: No progress 0620: No progress 0718: No progress so now dropped as AT/0718/01 is now due from this meeting! (see later in these minutes) |
DROPPED |
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ALL/0620/01 |
Determine appropriate date and venue for
the AGM |
COMPLETE |
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RW/0620/02 |
Sell Fyffes and buy Alumasc, remembering
to account for the additional £6000 being put into the mechanical portfolio |
COMPLETE |
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RW/0620/03 |
Find out what made Alumasc pass the
filters this month despite them failing to pass them last month |
COMPLETE |
See end of these minutes.
Deferred as no report available.
See separate report for detail.
Highlights/Lowlights: Another good month with our holdings up more than £1230 on the month, equivalent to a 3.7% gain. Unit value up from 573.34 to 594.453. We have £4273 of non-mechanical cash.
Sportingbet is currently shown as being in the “Software” sector whereas the view of the meeting was that it should really be shown as being in “Leisure” as its primary business is as an online bookmakers rather than as a provider of software.
Chris to update the Treasurer’s report to reflect this.
It was agreed that the Strategy should be also updated to allow the sector to be changed where considered appropriate to do so.
Chris stated that Dart was about to move off the main market and onto Aim, and also noted that Hunting was considering offering a rights issue. We would be notified of the options soon after any such decision, expected by the end of July. By default, the position should be to do nothing but, given that we have a lot of cash, have just put more money into the mechanical portfolio, and want to preserve our current balance between holdings, it was agreed that we would take up the rights offer if made available. Dave to update the Strategy to state that the default decision would be to do nothing when faced with a rights issue unless a proposal to take it up was raised.
A couple of points arose regarding the Money Management checks in the Treasurer’s report. These are covered in section 6.1 below.
Chris distributed the annual accounts. It had been another very good year net assets up approximately £15000 against subscriptions of less than £6000. Just considering the income from investments on the year, we had gained approximately £7300 on an asset base at the start of the year of just over £23000 which is an excellent result. In this context, our performance in the year to June 2004 was even better than we recognised at the time.
Fundamental portfolio is still “Too low” (23% against strategic minimum of 25%). Given the cash pile, fundamental proposals are strongly encouraged.
Dave had identified an inconsistency in the Money Management checks in the report. Specifically, the % holdings by sector was calculated just using the non-cash assets whereas the % holdings by company was calculated using all assets. It was agreed that both the above checks should use the non-cash assets.
There is also a Money Management check to calculate the % held in common UK stock. It was agreed that this should remain as currently calculated, using the total net asset value of the club.
Dave to update the Strategy to make the Money Management calculations explicitly clear. Chris to update the calculations in the Treasurer’s report accordingly.
This is a month for the ‘Growth’ side of the portfolio with Sportingbet as the candidate for sale. However, Sportingbet has risen beyond the target price so is now to be held until it breaches its trailing fall of 14.86p. As this represents only 4% of the current share price, it is very likely that Sportingbet will be sold during the next month but, as it is being held today, there is no mechanical buy transaction for July 2005. The top candidate for purchase would have been Charter had Sportingbet not been retained.
The table below now reflects the sell situation for
each mechanical holding. The
appropriate sell condition (i.e. “Anniversary” or “Sell If Below”) is shown in bold.
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Company |
Portfolio |
“Anniversary” |
Purchase Price |
Target Price |
Trailing Stop Loss |
High Since Purchase |
Target Met? |
Sell If Below |
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Sportingbet |
Growth |
Jul 2005 |
99.05 |
148.58 |
14.86 |
351.50 |
Yes |
336.64 |
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McAlpine |
Value |
Aug 2005 |
254.70 |
382.05 |
38.21 |
383.00 |
Yes |
344.80 |
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Hyder |
Growth |
Sep 2005 |
150.00 |
225.00 |
22.50 |
231.50 |
Yes |
209.00 |
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Lambert
Howarth |
Value |
Oct 2005 |
272.00 |
408.00 |
40.80 |
363.00 |
No |
408.00 |
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Advanced
Fluid Connectors |
Growth |
Nov 2005 |
24.65 |
36.98 |
3.70 |
30.75 |
No |
36.98 |
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Taylor
Woodrow |
Value |
Nov 2005 |
242.39 |
363.59 |
36.36 |
347.25 |
No |
363.59 |
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Bellway |
Value |
Dec 2005 |
724.40 |
1086.60 |
108.66 |
894.00 |
No |
1086.60 |
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Hunting |
Growth |
Jan 2006 |
184.75 |
277.13 |
27.71 |
264.00 |
No |
277.13 |
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Wagon |
Value |