Meeting:

Monthly Meeting - February 11th 1999

 

Held at:

The Bank

Date:

11 February 1999

 

 

Time:

17:15 - 18:20

Prepared by:

Dave G

 

Chairperson:

Dave G

 

Present:

Chris B

 

 

Adrian B

 

 

Dave G

 

 

Kit P

 

 

Richard W

 

 

Apologies :

Geoff O’F

 

 

 

 

 

Distribution:

Those above

 

 

Chairman’s Acceptance of Minutes

 


_____________________________________________


____ / _____ / ____

Signature

Date

 

 

 

 

 

 

1.                           Minutes of previous meeting

The minutes from the monthly meeting of 13 January 99 were agreed.

2.                           Next Meeting

The next meeting will be the March monthly meeting of the club and will take place at 17:00 on Thursday 18th March in Clancy’s (or The Bank depending on opening times).

3.                           Actions from previous meeting

3.1                       Actions Closed since last meeting

Ref.

Description & Progress

Target Date

KP/1118/02

Sign the revised issue of the club Rules (Issue 2, as updated 22/10/98)

1209: No known progress

0113: No known progress

0211: Superseded as we now have an issue 3

DROPPED

AB/0113/01

Obtain the next free copy of The Analyst (which is available by contacting 0181 2897966)

0211: Adrian received the September issue

CLOSED

DG/0113/02

Issue a revised version of the Rules for review and acceptance so that selling back of part holding to the Club is permitted

0211: See item 7 on agenda

CLOSED

           

3.2                       Actions Carried forward to Next Meeting

See end of these minutes

4.                           Treasurer’s Report

CB supplied his report.

The report showed net total assets of £2242.88 (profit of £442.88 (or 49.21% APR)), unit value of 127.442p and units held as 293.318 per member (which equates to £355.11 per member if realised; a profit of £55.11 (or 36.74% APR)).

The current net value if realised on the Science Systems shares was calculated as £1030 (a profit of £288.86 (or 128.16% APR) so far on the deal).

The current net value if realised on the ARM Holdings shares was calculated as £670.75 (a profit of £161.26 (or 577.64% APR) so far on the deal).

5.                           BUY/SELL Process

CB provided a brief overview of the process to be followed when carrying out a buy/sell transaction.  In short, we use the touch-tone, phone based dealer service.  This requires you to key in an account number and PIN then follow a voice menu and key in instructions.  You select the share you wish to trade by entering the code number as supplied in each Monday’s Financial Times.  You are then provided with an indicative share price and you then select the number of shares to trade.

RW stated that the internet based service is a bit more flexible (e.g. allows specification of a cost value rather than just a number of shares).

CB undertook to write-up the process and also cover the transferring of funds to the Charles Schwab account.  This documentation will then enable other members of the club to progress a deal should CB be unavailable for any reason.

CB explained that Charles Schwab’s new investment club service required us to nominate two dealers.  It was agreed that CB and RW should be our two nominated dealers.  CB to notify Charles Schwab.

6.                           Lucky Llama competition

RW supplied an updated copy of the portfolio spreadsheet showing the latest positions in the Lucky Llama competition. 

Summary of positions :-

Who

Change last 5 weeks

Total

Change overall

CB

10.14% (£347.87)

£5529.43

-24.41%

RW

4.27% (£236.33)

£5765.76

15.32%

AB

2.86% (£137.31)

£4936.68

-1.27%

KP

2.84% (£134.29)

£4859.07

-2.82%

GOF

0.08% (£4.58)

£5580.17

11.60%

DG

-0.93% (-£55.12)

£5890.49

17.81%

Average

2.68% (£134.21)

£5135.27

2.71%

FTSE 100

-4.75%

 

11.54%

FTSE All Share

-3.03%

 

10.63%

RSIC Portfolio

25.23%

 

35.89%

 

It was noted that all 6 of us beat the FTSE 100 over the last 4 weeks - indeed all bar DG made a profit during the period[1]

Overall, 3 people were beating the FTSE 100 and DG was the overall leader so far[2].

The pot llama had already been formally handed over to CB prior to the meeting.

Nobody had any buy/sell decisions to present at the meeting though DG indicated that he was likely to sell out of Pacific Assets and into Chiroscience Group and AB indicated that he was likely to sell out of Hamleys and Mid Kent and possibly into Securicor. 

All have till end of Friday 12th February to send in buy/sell requests that would get processed at the weekend.

7.                           RULE CHANGE

DG had issued a revised version of the rules (issue 3) for review and acceptance.  This version had incorporated the new rule to cover the selling back of part holdings to the club (as discussed at the 13 January 1999 meeting).

The rules were accepted.

As Chair, KP needs to sign them off as approved.

8.                           Portfolio Management

8.1                       Stop Loss Triggers

Science Systems has risen further in the last 4 weeks standing at a new high since purchase of 211.5p.  No stop-loss has therefore been triggered.  With a 20% stop-loss, a price drop to 169p would trigger a sell proposal.

ARM has risen since purchase and was standing at 1960p, slightly below the high of 2037p reached one week previously.  With a 20% stop-loss, a price drop to 1630p would trigger a sell proposal.

8.2                       New Buy Proposals

No buy proposals were presented for discussion/consideration. 

CB had noted in his Treasurer’s report that we will soon have £700 in our Market Master account so it isn’t too soon to be considering what we should purchase next. 

8.3                       Sell Proposals

Some discussion took place on whether we should take advantage of our skill/luck and get involved in some profit-taking.  It was recognised that having only purchased 35 shares in ARM, it was not really sensible to sell enough to cover our initial costs as this would only leave us with 7 shares!.  However, whilst the principle of selling out for profit taking was not rejected, it was agreed that as we have no buy proposals and our strategy is ‘…better to be in than out’ then we should not sell any of our current holdings.


9.                           Competitions

DG reported that we had again got 7 out of 10 predictions correct in the Mirror Competition.  The end values were as follows :=

Stock

Start Value

Prediction

End Value

 

Asda

151

Lower

156

X

Boots

930

Lower

867

Ö

Carlton

542

Higher

655

Ö

EMI

375

Lower

450

X

Halifax

800

Lower

697.5

Ö

Marks & Spencer

358

Lower

363.25

X

National Power

530

Lower

469

Ö

Railtrack

1469

Higher

1599

Ö

Shell

344

Lower

334.25

Ö

Thomson Travel

150

Higher

155.5

Ö

 

Again, this is unlikely to win - especially as we also got the tie-breaker wrong by selecting Railtrack.

The next entry form is expected in the Mirror on Wed 16th February.  DG to look out for it.

The Mail on Sunday competition’s entry date was 4th February so we missed it.  The next one is expected in the first week in March.


Actions carried forward to next meeting

Ref.

Description & Progress

Target Date

KP/1020/03

Find out what other items could fall into the Market Analysis section of the Buy Criteria

1118: No progress

1209: No known progress

0113: No known progress

0211: No progress but agreed it was worth keeping the action open

18/3/99

 

ALL/1118/04

Send a list of which annual reports you own to DG

1209: No progress

0113: No progress

0211: No progress

18/3/99

DG/1118/05

Create a consolidated index of annual reports that we collectively own (based on completion of ALL/1118/04 above)

1209: DG has listed the reports he owns but the completion of this action is dependent on everyone else completing ALL/1118/04

25/3/99

DG/0211/01

Obtain the next free copy of The Analyst (which is available by contacting 0181 2897966).   Wait till mid March before ordering as ordering too soon may mean we get another September issue

18/3/99

KP/0211/03

Sign the revised issue of the club Rules (Issue 3)

18/3/99

CB/0211/04

Document the procedure that needs to be followed when transferring club funds to our Charles Schwab account and progressing a buy/sell transaction.

18/3/99

CB/0211/05

Notify Charles Schwab of the fact that CB and RW are our two nominated dealers

18/3/99

DG/0211/06

Send out details of the next Mirror competition, expected in the Mirror of 16th February

16/2/99

 



[1] but I’ll not bother minuting that!

[2] And I will bother minuting that!