Meeting:

Monthly Meeting  - Jan 2006

 

Held at:

The Brocklebank, Crewe

Date:

17th January 2006

 

 

Time:

17:00 – 18:00

Prepared by

Dave G

 

Chairperson:

Dave G

 

Present:

Adrian T

 

 

Chris B

 

 

Dave G

 

 

Simon B

 

 

Richard W (from item 5.2)

 

 

 

 

 

Apologies:

Kit P

 

 

Chairman’s Acceptance of Minutes

 


_____________________________________________


____ / _____ / ____

Signature

Date

 

 

 

1           NEXT MEETING

To be proposed by email, Fridays to be avoided if possible.

2           Minutes of previous meeting

Accepted.

3           ACTIONS FROM PREVIOUS MEETING

3.1          Actions Closed Since Last Meeting

Ref.

Description & Progress

Status

 

No actions closed since last month

 

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:  Another good month’s performance with our holdings up 5.3% on the month.  Unit value up from 632.388 to 659.878.  We now have £2,180 cash with an additional £8,576 in cash alternative investment trusts.

4.2          Matters Arising From Report

It was noted that our decision to use Investment Trusts as a cash alternative has proved to be a good one so far with the investments having risen by £580 since purchase whereas, had we continued to hold the cash in the bank account, we’d have received less than £15 in interest.

Club’s profit reached £21.2k this month, a new record high.

Kit’s exit value now exceeds £10,000, another milestone.

5           PORTFOlio Management

5.1          Monthly Money Management Checks

Fundamental portfolio is showing as “too low” with 17% held in this portfolio against strategic minimum of 25%.

We no longer have a Speculative holding but as the strategic range is  0%-25%, this is not actually “too low”.

Fundamental and Speculative proposals are very much encouraged.

5.2          Mechanical Portfolio

Up 3.4% over the month, in line with the general market.

The mechanical portfolio has now reached a milestone of it’s own by now exceeding £10,000 profit.

Due to sell Hunting from the Growth side this month but, as it has risen above it’s 50% target level, we will be holding.  BetOnSport would have been purchased had we sold Hunting.

We still have two vacant slot in the value side of the portfolio which will be filled once we have some valid candidates.  Still no candidates this month on the Value side.

A discussion took place over whether we should relax the filters yet further to let something through, or to purchase an additional Growth candidate to fill one or both of the gaps in the Value portfolio.  Richard suggested that we could rank the Growth candidates by the Value weightings and select the highest ranked.  Decision taken as follows:-

·         If more than one gap in the Value portfolio and no candidates pass the Value filters then the following process should take place:-

o        Rank the successful Growth candidates by the Value weightings and select the highest ranked company provided that

§        It is in the top 50 of unfiltered stocks

§        The spread is not unreasonable

o        Fill at most only 1 vacant slot each month using this method

o        Leave at least 1 slot vacant for a valid Value candidate next month

·         Same principle to apply also if more than 1 vacancy in the Growth portfolio.

Dave to update the Strategy to reflect the decision above.

Richard to apply the above process to fill one of the vacant Value slots this month.

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

Hyder

Growth

Sep-05

150.00

225.00

22.50

292.75

Yes

270.25

Hunting

Growth

Jan-06

184.75

277.13

27.71

323.50

Yes

295.79

Wagon

Value

Feb-06

182.85

274.28

27.43

199.50

No

274.28

Carclo

Growth

Mar-06

67.50

101.25

10.13

88.50

No

101.25

Dart Group

Growth

May-06

295.70

443.55

44.36

413.50

No

443.55

Alumasc

Value

Jun-06

158.50

237.75

23.78

182.50

No

237.75

Charter

Growth

Aug-06

326.26

489.39

48.94

576.00

Yes

527.06

Wyndeham Press

Value

Oct-06

114.43

171.65

17.16

131.00

No

171.65

McAlpine (Alfred)

Value

Oct-06

347.97

521.96

52.20

409.50

No

521.96

Metnor Group

Growth

Nov-06

219.83

329.75

32.97

230.00

No

329.75

 

5.3          Monthly Reports For Each Company in Fundamental Portfolio

CodaSciSys

HOLD – Not yet met sell criteria (see table in 5.6 below)

ISG

HOLD – Not yet met sell criteria (see table in 5.6 below)

Pace

HOLD – Not yet met sell criteria (see table in 5.6 below)

Raymarine

HOLD – Not yet met sell criteria (see table in 5.6 below)

UBC Media

HOLD – Not yet met sell criteria (see table in 5.6 below)

 

See separate monthly reports for more detail. 

 

5.4          Speculative Portfolio

No holdings in the speculative portfolio.

Proposals are encouraged.  An iShare may be worth considering; might not double in a year but we should remember that the Speculative portfolio was also to allow us to invest in products or markets that we are not familiar with.

5.5          Other Investments

Brief discussion took place as to when it would be appropriate to put some cash into the alternative cash investments that we have set up.  We currently have £2,180 of spare cash, with an additional £6880.10 of mechanical cash that could be temporarily put into one or other of the investment trusts in the short term.   We’re now adding £670 per month as subscriptions so, by default, our cash pile will get increasingly bigger.