Meeting:

Monthly Meeting & AGM - July 2005

 

Held at:

The Office, and Casa Tapas restaurant, Crewe

Date:

18th July 2005

 

 

Time:

17:15 – 20:30

Prepared by

Dave G

 

Chairperson:

Adrian T

 

Present:

Adrian T

 

 

Chris B

 

 

Dave G

 

 

Kit P

 

 

Richard W

 

 

Simon B

 

 

Apologies:

None

 

 

 

Chairman’s Acceptance of Minutes

 


_____________________________________________


____ / _____ / ____

Signature

Date

 

 

 

1           NEXT MEETING

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 

2           Minutes of previous meeting

The date of the next meeting was incorrect.  Otherwise, accepted.

3           ACTIONS FROM PREVIOUS MEETING

3.1          Actions Closed Since Last Meeting

Ref.

Description & Progress

Status

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

ALL/0620/01

Determine appropriate date and venue for the AGM

COMPLETE

RW/0620/02

Sell Fyffes and buy Alumasc, remembering to account for the additional £6000 being put into the mechanical portfolio

COMPLETE

RW/0620/03

Find out what made Alumasc pass the filters this month despite them failing to pass them last month

COMPLETE

3.2          Actions Carried forward to Next Meeting                         

See end of these minutes.

4           Chairman’s Report

Deferred as no report available.

5           Treasurer’s Report

5.1          Monthly Report Summary

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.

5.2          Matters Arising From Report

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.

5.3          Annual Report

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.

6           PORTFOlio Management

6.1          Monthly Money Management Checks

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.

6.2          Mechanical Portfolio

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.

 

Company

Portfolio

“Anniversary”

Purchase Price

Target Price

Trailing Stop Loss

High Since Purchase

Target Met?

Sell If Below

Sportingbet

Growth

Jul 2005

99.05

148.58

14.86

351.50

Yes

336.64

McAlpine

Value

Aug 2005

254.70

382.05

38.21

383.00

Yes

344.80

Hyder

Growth

Sep 2005

150.00

225.00

22.50

231.50

Yes

209.00

Lambert Howarth

Value

Oct 2005

272.00

408.00

40.80

363.00

No

408.00

Advanced Fluid Connectors

Growth

Nov 2005

24.65

36.98

3.70

30.75

No

36.98

Taylor Woodrow

Value

Nov 2005

242.39

363.59

36.36

347.25

No

363.59

Bellway

Value

Dec 2005

724.40

1086.60

108.66

894.00

No

1086.60

Hunting

Growth

Jan 2006

184.75

277.13

27.71

264.00

No

277.13

Wagon

Value