A NEW GOVERNMENT PROMISING GROWTH
LET'S HOPE SO
The China Dolls have been busy "cleaning up" their portfoliio and have managed to reduce the number of companies down from 26 to 20. This is quite an achievement when you think how often is it that 8 women agree on something?
Of those 20 only 7 are showing a loss which is a good average - 5 of those companies are in our AIM group of shares which we always anticipated would take a while to come to fruition.
I.T.M. POWER: is a renewable energy company, which designs and manufactures hydrogen energy systems for clean fuel production and energy storage.
Ian Cowie wrote an interesting article on ITM recently
He invested into this company over a decade ago, paying 41p a share. He took profits the following year at 56p but then decided to invest more as it increased to 124p. By Jan/March 2021 the share had risen substantially and, he quotes, "thank heavens I took two thirds of my investment out at 539p and 446p"
I.T.M is now sitting at 52p
Ian emphasises that paper profit is just that - profit on paper is not real until you make the decision to cash it in.
The China Dolls bought into this company when the share price was sitting at 311p - so as you can gather we are showing a substantial loss. Thank goodness we only deal in small amounts when initially investing in AIM stocks. It is not worth us selling, so a hold.
COSTAIN: On a happier note:
We invested in Costain anticipating a house building growth programme if a Labour government got into power. We were correct in our assumption - Labour are forging ahead with the easing of planning laws which is only good news for the construction company, Costain, and we are currently showing a 14% rise in our investment. A definite hold.
DIAGEO: We bought into Diageo at the start of the pandemic in 2020. By December 2021 we were showing a healthy profit (note to China Dolls, take in what Ian Cowie wrote!) The share price held up well until December 2022, since when it has been in a steady decline.
However, many analysts still seem to report that Diageo is undervalued, and it pays a good dividend. As many of you who read our articles know - our Treasurer, Pam S, loves a company with good dividends!
THE PROPERTY FRANCHISE GROUP:
We initially held shares in Belvoir which was taken over by The Property Franchise Group,
since when our holding, originally showing a loss, has been on the increase. We are now showing a profit of 27%.
Details have emerged of a deal - reported on Letting Agent Today and Sky News in June - that the Property Franchise Group is to buy The Guild of Property Professionals and Fine & Country.
The Guild and Fine & Country provide services to a total of 1,036 outlets, of which 65 are international, substantially broadening The Property Franchise Group which has an existing network of 910 outlets.
We are holding.
SIMEC ATLANTIS ENERGY COMPANY:
We reported on this company last month, since when the share price has increased by 219%
WOW! What a substantial move.
The company’s strategy directly supports UK government policy to improve energy security and achieve Net Zero by 2050.
A few insights into SIMEC:
2023 Financial Highlights:
£23.2m profit (loss of £11.1m 2022)
Group revenue increase of 292% to £15.3m
Excellent revenues available e.g. from sale of Uskmouth for £10m
Net assets increased by 678% mainly from the reassessment of the value and size of the company’s BESS projects. (Battery Energy Storage)
A reduction of 30% in group debt.
A reduction of 29% in operating costs.
All this sounds very positive for this AIM company.
We are holding.
DECISIONS:
We did not sell any of our holdings:
But yes: you guessed it. We purchased another £500 of SIMEC shares.
See you in August.
DISCLAIMER
The China Dolls is a group of private individuals who meet regularly to discuss investment strategy and make investments based on the collective opinion of the the group.
The China Dolls is not in the business of offering any form of advice on investing or other financial matters.
The content of this blog is not to be considered an inducement to trade as we trade and is offered for illustrative purposes only.
Any use you may make said content is entirely your responsibility and The China Dolls will not be held liable for any losses you may incur as a result of using this blog to help you trade.
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