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Meeting: |
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Held at: |
The Brocklebank, Crewe |
Date: |
15th
March 2007 |
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Time: |
16:55 – 17:50 |
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Prepared by |
Richard W |
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Chairperson: |
Adriant T |
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Present: |
Adrian T Kit P Richard W Simon B |
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Apologies: |
Chris B, Dave G |
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Chairman’s Acceptance of Minutes |
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Signature |
Date |
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To be decided by email.
Accepted.
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Ref. |
Description &
Progress |
Status |
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DG/0116/07 |
Submit entry to Proshare for the annual awards 0215: Not done but will do so
by deadline day of 16th Feb. 0315: Entry submitted but not shortlisted for any awards – a complete travesty! |
COMPLETE |
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DG/0116/08 |
Contact Proshare about possibility of keeping an eye on (or even negotiating) rates at banks and brokers for investment clubs 0215: Not specifically
progressed but there is a move by Mourad of the Mobius Club and others (via
the Proshare message board) to establish a Steering Committee to help
investment clubs, as Proshare no longer appear to be motivated to offer
anything to clubs. Dave to keep in
touch with Mourad for progress and contribute where necessary. 0315: Closed as no specific action required |
COMPLETE |
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RW/0215/03 |
Sell ISG and buy Royal Dutch Shell, ScS Upholstery and Renold |
COMPLETE |
See end of these minutes.
See separate report for detail.
Report prepared by Richard as Hon Treasurer is currently away on business. As a result some information not available but nothing that would have a material effect on the unit value.
Highlights/Lowlights: A small loss which comfortable outperformed the larger market loss. Thanks to the additional subscriptions the club assets set a new high.
Unit value down from 846.810 to 843.087.
We have £4.5k available as non-mechanical cash with an additional £9.2k in cash alternative investment trusts.
Overall club assets stand at £70,786 with profits of £35,692. Overall return on investment is 101.70% and the annualised rate of return since the club started in May 1998 is 27.13% (compared with an annualised rise in the FTSE of 7.53% over the same period). In the 94 rolling 12-month periods since comparisons could begin, the Club has outperformed the FTSE in 78 of these, which is 82.9%.
Current status of the Abbey current account application is not known. Once it is open Chris will need to arrange for the direct debits with Barclays Stockbrokers to be transferred and inform members of new account details to allow them to amend their subscription standing orders.
As usual, the Fundamental portfolio is still showing as “too low” with 11.9% 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.
More fundamental buy proposals are encouraged.
The portfolio suffered a 1% fall during the month but it was still an out performance with the market falling by 2%.
The main movers were Lookers (+7%), John David (+6%), Character Group (+5%), Cable & Wireless (-5%) and Oxford Instruments (-10%). In addition, McAlpine fell by 17% before it was sold.
During the month, McAlpine fell below its stop loss level and was sold. As a result we once again have a vacancy in the value side.
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 |
Annivers-ary date |
Purchase Price |
Target Price |
Trailing Stop Loss |
High |
Target Met? |
Sell If Below |
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Metnor
Group |
Nov-06 |
219.83 |
329.75 |
32.97 |
427.50 |
Yes |
394.53 |
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Character
Group |
May-07 |
59.50 |
89.25 |
8.93 |
156.50 |
Yes |
147.58 |
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Ashley
(Laura) |
May-07 |
22.50 |
33.75 |
3.38 |
29.25 |
No |
33.75 |
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Cable
& Wireless |
Jun-07 |
110.39 |
165.59 |
16.56 |
179.50 |
Yes |
162.94 |
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John
David Group |
Jun-07 |
254.49 |
381.74 |
38.17 |
422.75 |
Yes |
384.58 |
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Jacques
Vert |
Aug-07 |
18.00 |
27.00 |
2.70 |
23.75 |
No |
27.00 |
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Lookers |
Nov-07 |
167.72 |
251.58 |
25.16 |
198.50 |
No |
251.58 |
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Oxford
Instruments |
Jan-08 |
273.73 |
410.60 |
41.06 |
285.50 |
No |
410.60 |
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Royal
Dutch Shell B |
Feb-08 |
1702.53 |
2553.80 |
255.38 |
1707.00 |
No |
2553.80 |
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ScS
Upholstery |
Feb-08 |
422.90 |
634.35 |
63.44 |
437.50 |
No |
634.35 |
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Renold |
Feb-08 |
131.96 |
197.94 |
19.79 |
138.50 |
No |
197.94 |
There are no valid candidates to fill the vacancy on the value side. 5 companies pass the newly relaxed filters agreed upon last month. Royal Dutch Shell is one of these (which we bought last month) and the other 5 all fall outside the top 50 in the unfiltered list. We had agreed to the top 50 stipulation last month but Richard suggested that perhaps it would make sense to relax or even scrap it for the new relaxed filters (whilst keeping it for the other relaxations). The general feeling at the meeting was that it should be OK to scrap it altogether and Dave had already voted for this by email. Adrian put forward a counter suggestion to relax the requirement to it being in the top 10% of companies in the unfiltered list on the basis that this was a significant relaxation (the top 10% currently equates to 212 companies) and that it reduced the risk of buying a weak candidate. This suggestion was agreed upon.
Dave to update the strategy with the change to the top 10% of companies (included in existing action DG/0215/04.
As a result of adopting this change, the housebuilder, George Wimpey becomes eligible for purchase. Richard to purchase it.
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Coda |
HOLD – Not yet met sell criteria (see table in 5.6 below). |
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SciSys |
HOLD – Not yet met sell criteria (see table in 5.6 below). |
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Raymarine |
HOLD – Not yet met sell criteria (see table in 5.6< |