Meeting:

Monthly Meeting - October 2006

 

Held at:

9th Floor, Rail House, Crewe

Date:

18th October 2006

 

 

Time:

17:00 – 18:10

Prepared by

Dave G

 

Chairperson:

Adrian T

 

Present:

Adrian T

Chris B

Dave G

Kit P

Simon B

 

 

 

 

 

Apologies:

Richard W

 

 

Chairman’s Acceptance of Minutes

 


_____________________________________________


____ / _____ / ____

Signature

Date

 

 

 

1           NEXT MEETING

Wednesday 15th November at 17:00 in the Brocklebank.

Wednesday 13th December at 17:00 in the Brocklebank.

2           Minutes of previous meeting

Accepted.

3           ACTIONS FROM PREVIOUS MEETING

3.1          Actions Closed Since Last Meeting

Ref.

Description & Progress

Status

CB/0726/04

Maintain a running list of items to be eventually incorporated into next year’s (to June 07) annual account report.

0831: Not started.  Action left open as a reminder until Chris says he’s started it.

0920: As above

1018: Incorporated into Treasurer’s Report

COMPLETE

ALL/0920/02

Consider a member of the banking sector for the October selection of the lucky llama

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:  Another good month with an overall gain in our holdings of £2342 (4.8%) which is an outperformance against the FTSE which was up 4.5%.

Unit value up from 705.247 to 732.92.  We have just over £3.1k available as non-mechanical cash with an additional £9.2k in cash alternative investment trusts.  

Club profits were now at a new record high of £26.7k.

Main investment news during the month was the split of CodaSciSys into Coda and SciSys and the fact that the Stanley Leisure bid has now gone unconditional.

The following stats were noted from the Tracking spreadsheet:-

+         The Club's effective annualised rate of return since it started is a phenomenal 24.4% (against FTSE of 8.1%)

+         The Club's effective rate of return in the past 12 months is 22.6% (against FTSE of 19%)

+         In the 100 months since comparisons could begin, the Club has outperformed the FTSE Allshare in 59 of these, which is 59%

+         In the 89 rolling 12-month periods since comparisons could begin, the Club has outperformed the FTSE Allshare in 73 of these, which is a whopping 82%

4.2          Matters Arising From Report

It was agreed that we should take the cash for Stanley Leisure.  Chris B to arrange.

Adrian T noted a possible anomaly in the RSIC Tracking spreadsheet with respect to the record high for the profits.  In the Member Value worksheet, the club was indeed showing new high for overall profit, yet no individual club members had a personal new high profit.  Chris B to check.

5           PORTFOlio Management

5.1          Monthly Money Management Checks

As usual, the 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 still 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 two investment trust alternative cash holdings are both approaching the 10% limit also.

More fundamental buy proposals are encouraged.

5.2          Mechanical Portfolio

We were due to sell McAlpine this month but it reached it's 50% profit target last week so the trailing stop loss has kicked in - 52.2p which means the stop is currently 477.8p v its current 522.5p. We've got the usual vacancy in the value side and, also as usual, no candidates.

Hence no transactions 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

McAlpine (Alfred)

Value

Oct-06

347.97

521.96

52.20

522.5

Yes

477.8

Metnor Group

Growth

Nov-06

219.83

329.75

32.97

325.00

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

878.50

No

1171.50

Character Group

Growth

May 07

59.50

89.25

8.93

77.00

No

89.25

Ashley (Laura)

Growth

May 07

22.50

33.75

3.38

27.00

No

33.75

Cable & Wireless

Value

Jun-07

110.39

165.59

16.56

142.50

No

165.59

John David Group

Value

Jun-07

254.49

381.74

38.17

320.00

No

381.74

Jacques Vert

Growth

Aug-07

18.00