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Meeting: |
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Held at: |
9th Floor, Rail House, |
Date: |
23rd
May 2006 |
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Time: |
17:15 – 17:40 |
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Prepared by |
Dave G |
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Chairperson: |
Adrian T |
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Present: |
Adrian T Dave G Kit P |
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Apologies: |
Chris B Simon B Richard W |
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Chairman’s Acceptance of Minutes |
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Signature |
Date |
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To be arranged – possible dates to be sent out by email.
Accepted.
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Ref. |
Description &
Progress |
Status |
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AT/0718/01 |
Issue Chairman’s annual
statement for 2005 via email 0810: No progress 0921: No progress 1017: No progress 1128: No progress 1219: No progress 0117: No progress 0215: No progress 0314: No progress 0427: No progress |
DROPPED |
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SB/0427/01 |
Send out link to the QINETIQ documentation |
COMPLETE |
See end of these minutes.
See separate report for detail.
Highlights/Lowlights: A very poor month with holdings down 7.6% on the month which represents £3.5k – almost exactly wiping out the gains we improved by during April. The FTSE during the month is down 7.3%. Unit value down from 735.503 to 688.824. We have £3,113.06 available as non-mechanical cash with an additional £8,451.35 in cash alternative investment trusts. Having also sold ISG from the fundamental portfolio at the weekend, we’re actually now over £5k in non-mechanical cash and over £13k in total non-mechanical cash or cash investments.
None
Fundamental portfolio is still showing as “too low” with 15% held in this portfolio against strategic minimum of 25%.
Speculative portfolio is only 5% which isn’t “too low” because the lower limit is 0% but represents only one holding.
Cash is now 22% which is approaching the upper limit of 25% so buy proposals are encouraged.
A poor month, down 5.3% but at least we outperformed the market! 7.5% compared to the market’s 4% rise.
Dart is due to be sold from the Growth side this month and with Hunting having been sold during the month as it breached its stop loss, this leaves two vacancies. Top candidate is Character Group which is in the Media sector and is involved with the design, development and international distribution of digital cameras, toys, games and giftware. For the second slot, we already hold BETonSPORTS and Interior Services (in the value side) so the first valid candidate would be Laura Ashley, the clothing retailer.
Whilst no sale is due in the Value side, we still have one vacancy but there are no current candidates to fill it. However, Wyndham Press takeover has gone unconditional with the expectation of going through by the end of May so, if we were to consider that as “sold” then this would mean that there were two Value vacancies. In these circumstances, then the compromise filters/rankings would apply and the top candidate for selection would be M&C Saatchi, the advertising agency.
A discussion took place over whether or not to consider Wyndham as sold and therefore buy M&C Saatchi. On the one hand, we are certain that the takeover will go through so, on the basis of “better in than out” then considering Wyndham as sold would allow us to make a purchase and avoid having 2 vacancies carried forward to next month. On the other hand, waiting till next month would have two proper vacancies and it could be that some real value candidates could come through and this would be preferable to the Value side portfolio becoming filled with compromise candidates. On balance, the decision was taken that as Wyndham still appeared in the Treasurer’s Report as a holding then we should consider Wyndham as not yet sold. There will therefore be two Value vacancies next month.
It was suggested that the Strategy be further modified to use the above rationale to determine whether a holding in a takeover situation should be considered “sold”. Dave to update the Strategy.
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 |
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Dart
Group |
Growth |
May-06 |
295.70 |
443.55 |
44.36 |
427.50 |
No |
443.55 |
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Alumasc |
Value |
Jun-06 |
158.50 |
237.75 |
23.78 |
182.50 |
No |
237.75 |
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Charter |
Growth |
Aug-06 |
326.26 |
489.39 |
48.94 |
860.50 |
Yes |
811.56 |
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Wyndeham
Press |
Value |
Oct-06 |
114.43 |
171.65 |
17.16 |
154.00 |
No |
171.65 |
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McAlpine
(Alfred) |
Value |
Oct-06 |
347.97 |
521.96 |
52.20 |
499.75 |
No |
521.96 |
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Metnor
Group |
Growth |
Nov-06 |
219.83 |
329.75 |
32.97 |
260.00 |
No |
329.75 |
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First
Choice Holidays |
Value |
Jan-07 |
233.99 |
350.99 |
35.10 |
249.75 |
No |
350.99 |
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Interior
Services Group |
Value |
Feb-07 |
259.70 |
389.55 |
38.96 |
302.50 |
No |
389.55 |
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BETonSPORTS |
Growth |
Mar-07 |
159.44 |
239.16 |
23.92 |
171.00 |
No |
239.16 |
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Growth |
Mar-07 |
781.00 |
1171.50 |
117.15 |
781.00 |
No |
1171.50 |
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CodaSciSys |
HOLD – Not yet met sell criteria (see table in 5.6 below) |