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Meeting: |
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Held at: |
Square One then The Empire, |
Date: |
26th
July 2006 |
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Time: |
17:30 – 20:20 |
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Prepared by |
Dave G |
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Chairperson: |
Adrian T |
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Present: |
Adrian T Chris B Dave G Kit P Richard W 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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To be arranged – will be during August Bank Holiday week.
Accepted.
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Ref. |
Description &
Progress |
Status |
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CB/1128/01 |
CB to produce audit pack 1219: No progress 0117: No progress 0215: No Progress 0314: No Progress 0427: No Progress 0523: No Progress – is
this still needed?? 0621: No progress |
COMPLETE |
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RW/0621/02 |
Purchase £2500 of QINETIQ |
COMPLETE |
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CB/0621/03 |
Provide details of Ceres Power cash burn rate |
COMPLETE |
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SB/0621/04 |
Produce a buy proposal for Ascribe |
COMPLETE |
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ALL/0621/05 |
Consider venues for the AGM |
COMPLETE |
See end of these minutes.
Not done – Kit to produce one ahead of the next meeting.
See separate report for detail.
Highlights/Lowlights: Another poor month with holdings down 2.1% on the month which represents just over £1k. This was primarily due to us agreeing to treat the suspended BetOnSports as being at zero value (which is likely to be the valuation when the suspension is over!!). The rest of the portfolio rose by approx £1k which was actually slightly ahead of the FTSE which was up 1.7% on the month. It was probably our most active month ever with 5 purchases and 2 sales.
Unit value down from 677.786 to 655.607. We have £1,213 available as non-mechanical cash with an additional £8,371.99 in cash alternative investment trusts.
None.
Chris had distributed the annual accounts ahead of the meeting.
It had been another good year with net assets up approximately £13k against subscriptions of less than £8k. Just considering the income from investments on the year, we had gained approximately £8k on an asset base at the start of the year of just under £38k which is another pretty good result.
Due to the combination of Chris’s ability to get the accounts out a few days ahead of the meeting, and Richard’s dedication to progressing the audit in these few days, we had the luxury of also having the auditer’s report at the meeting. The audit found that the accounts were a true and fair state of the affairs of the club.
A general point raised in the audit report was how the accounts may appear to an auditer that may not be familiar with the detailed working of the club, should we ever need or wish to have the accounts audited externally. To quote directly from the report:-
“Providing detailed transactional records (e.g. double
entry bookkeeping) would address this issue. It would, however, put a
considerable extra burden on the Hon. Treasurer and may require the purchase of
an accounts package to enable it to be performed efficiently. I am not
convinced that the extra effort involved is currently worthwhile but as the
club’s assets increase it may become so. Alternatively, every such detail could
be recorded in the notes to the accounts but this could again mean significant
extra effort.”
Three actions arose from the discussion of this issue. Firstly, Richard agreed to produce an example of what the annual report might need to look like if we were to submit the accounts for external audit. Secondly, Simon agreed to investigate possible use of OpenSource software packages to help the Treasurer. Thirdly, Chris agreed to maintain a running list of items that could be incorporated into the annual report – maintaining a running list being a bit easier than creating the list from scratch at the time of having to produce the annual report.
A further discussion took place on whether or not dividends that had not yet been paid but which had gone XD before our year end should be included as assets of the club in the year end report. It was agreed that ideally they should be and that we should adopt this approach for next year’s annual accounts.
Fundamental portfolio is still showing as “too low” with 14% held in this portfolio against strategic minimum of 25%.
The Fundamental portfolio is also too concentrated with only 3 holdings in it, the issue being that two of these three exceed the strategic maximum weighting of 30% in any one stock within this portfolio.
The portfolio was significantly down this month, by 4% against a 2% rise in the market as a whole. This was due to the suspension of BetOnSports following the arrest of their CEO and the closing of the majority of their business.
It was noted that if BetOnSports does indeed prove to be near worthless when it comes out of suspension, it will be the second disaster in the growth selections to date (Advanced Fluid Connections being the other at -79%). Despite these, the average return on growth selections is still 33% so they have been very profitable but at much higher risk – which is pretty much what we expected.
No trades scheduled for this month. We continue to run with a vacancy in the Value side but there are no candidates coming up yet.
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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Charter |
Growth |
Aug-06 |
326.26 |
489.39 |
48.94 |
860.50 |
Yes |
811.56 |
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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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Character
Group |
Growth |
May 07 |
59.50 |
89.25 |