Meeting:

Monthly Meeting - August 2006

 

Held at:

The Brocklebank, Crewe

Date:

31st August 2006

 

 

Time:

17:15 – 18:20

Prepared by

Dave G

 

Chairperson:

Richard W

 

Present:

Chris B

Dave G

Kit P

Richard W

 

 

 

 

 

Apologies:

Adrian T, Simon B

 

 

Chairman’s Acceptance of Minutes

 


_____________________________________________


____ / _____ / ____

Signature

Date

 

 

 

1           NEXT MEETING

Wednesday 20th September at 17:00 in the Brocklebank.

2           Minutes of previous meeting

Section 6.6 had said that the exit criteria table covered both the Fundamental and the Speculative portfolio but only showed the Fundamental holdings.  This to be corrected from the August minutes onwards.

3           ACTIONS FROM PREVIOUS MEETING

3.1          Actions Closed Since Last Meeting

Ref.

Description & Progress

Status

DG&SB/0718/14

Propose a possible reworked top page for our website so that navigation can be made more like a portal

0810: No progress

0921: No progress

1017: No progress

1128: No progress – but still worth thinking about

1219: No progress

0117: No progress

0215: No progress

0314: No progress

0427: No progress

0523: No progress

0621: No progress

0726: No progress

0831: Agreed to drop this action though it was noted that the website had drifted out of date over the past 6 months and that it was important to get it back up to date.

DROPPED

CB/0621/01

Produce necessary figures for tax forms

0726: No Progress

0831: Very promptly dealt with by the tax office too.

COMPLETE

CB/0726/05

Treat dividends that are XD before year end but paid after year end as being assets of the club in the annual valuation from next year (June 07)

0831: Is covered in the template provided by Richard as part of action RW/0726/02 so can be considered complete as Chris has agreed to use this template for the 2006/07 report next year.

COMPLETE

RW/0726/02

Produce an example annual report in a proposed format that may lend itself more easily to being externally audited

COMPLETE

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:  A mixed month with an overall gain in our holdings of £1100 (2.5%) which is an underperformance against the FTSE which was up 3.8%.

Unit value up from 655.607 to 683.368.  We have just over £2k available as non-mechanical cash with an additional £8.5k in cash alternative investment trusts.  

4.2          Matters Arising From Report

It was noted that in the 98 months since comparisons could begin,  the Club has outperformed the FTSE Allshare in 58 of these, which is 59.1%.  However, and more notably,  in the 87 rolling 12-month periods since comparisons could begin, the Club has outperformed the FTSE Allshare in 71 of these, which is 81.6%.  This is a pretty impressive performance.

5           PORTFOlio Management

5.1          Monthly Money Management Checks

Fundamental portfolio is still showing as “too low” with 12% 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.

5.2          Mechanical Portfolio

The portfolio was up 4.8% this month with good gains from Cable & Wireless, Character Group, Metnor and Charter.   BETonSPORTS remains suspended with a likely zero valuation.

New highs were set by Character, Cable & Wireless, John David and Metnor.

There were no transactions last month. This month we are due to sell Charter from the Growth side. It is currently showing a profit of approximately 130%. The top replacement candidate is Jacques Vert,  a clothing wholesaler / retailer.

As is becoming the norm we have one vacancy in the value side and no valid candidates.

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

McAlpine (Alfred)

Value

Oct-06

347.97

521.96

52.20

499.75

No

521.96

Metnor Group

Growth

Nov-06

219.83

329.75

32.97

292.00

No

329.75

First Choice Holidays

Value

Jan-07

233.99

350.99

35.10

249.75

No

350.99

Interior Services Group

Value

Feb-07

259.70

389.55

38.96

302.50

No

389.55

BETonSPORTS

Growth

Mar-07

159.44

239.16

23.92

171.00

No

239.16

Stanley Leisure

Growth

Mar-07

781.00

1171.50

117.15

781.00

No

1171.50

Character Group

Growth

May 07

59.50

89.25

8.93

75.50

No

89.25

Ashley (Laura)

Growth

May 07

22.50

33.75

3.38

27.00