Meeting:

Monthly Meeting - November 2006

 

Held at:

The Brocklebank, Crewe

Date:

15th November 2006

 

 

Time:

17:15 – 18:35

Prepared by

Dave G

 

Chairperson:

Dave G

 

Present:

Chris B

Dave G

Kit P

Richard W

Simon B

 

 

 

 

 

Apologies:

Adrian T

 

 

Chairman’s Acceptance of Minutes

 


_____________________________________________


____ / _____ / ____

Signature

Date

 

 

 

1           NEXT MEETING

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

RW/0920/04

Carry out some analysis of which Values filters are most sensitive to see whether a further relaxation of the filters could allow more potential Value candidates

1018: Partly done – Richard supplied an initial report as discussed in section 5.2 of these minutes.  Action left open to allow further discussion next meeting.

1113: Done.  Discussed as part of section 5.2 below.

COMPLETE

CB/1018/01

Arrange to accept the cash from the Stanley Leisure acquisition

COMPLETE

CB/1018/02

Check the Member Value sheet in the Tracking workbook to understand and explain/correct the anomaly relating to the club having a new high profit despite no individuals showing one

COMPLETE

RW/1018/03

Confirm or revise default sell criteria for Coda

COMPLETE

RW/1018/04

Define sell criteria for SciSys

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 £1527 (3.2%) which is an outperformance against the FTSE which was up 1.1%.

Unit value up from 732.92 to 753.448.  We have just over £3.8k available as non-mechanical cash with an additional £9.2k in cash alternative investment trusts.  

Club assets are at a new record high of £60.7k with profits too at a new record high of £28.3k.

4.2          Matters Arising From Report

With HBOS now about to begin charging, it was proposed that we switch bank and Abbey was agreed as being where we should switch to.   Chris to co-ordinate the provision of details to Abbey to enable the accounts to be transferred. 

5           PORTFOlio Management

5.1          Monthly Money Management Checks

As usual, the Fundamental portfolio is still showing as “too low” with 12.8% 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

Another solid month with a 4.2% rise versus the market’s 1.1%.  McAlpine remains above its stop loss level (currently 503.05p) and will only be sold if it falls below it.  Metnor Group reaches its anniversary this month and would be sold from the Growth side but it has also reached its 50% profit target so is held until the trailing stop is breached.

However, we received the funds from the takeover of Stanley Leisure during the month creating a space in the growth side of the portfolio so there WILL be a transaction afterall with Lookers, who are car dealers, being the candidate to be purchased.

We continue to have a vacancy in the value side and there continues to be no valid replacement 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

555.25

Yes

503.05

Metnor Group

Growth

Nov-06

219.83

329.75

32.97

330.00

Yes

297.03

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

Character Group

Growth

May 07

59.50

89.25

8.93

89.25

Yes

89.25

Ashley (Laura)

Growth

May 07

22.50

33.75

3.38

27.25

No

33.75

Cable & Wireless

Value

Jun-07

110.39

165.59

16.56

159.25

No

165.59

John David Group

Value

Jun-07

254.49

381.74

38.17