We've received a couple of enquiries recently asking how to start an investment club.
The China Dolls began meeting monthly in the year 2000. Back then we had help from Proshare which was invaluable. Sadly, Proshare no longer offer start up programmes. HOWEVER: their ivaluation software can still be purchased. They offer a free trial and give a lot of information on the site.
If you're interested go to:
SHARES:
AB Dynamics: AB Dynamics plc is an international group of companies specialising in simulation and testing to enable the safe development of active safety and autonomous systems.
This week at the Silverstone motorsport circuit, Formula Student competitors will race against each other using the A B Dynamics static Plus driving simulator.
We are still waiting for this share to shine and at the moment are showing a 50% loss. But this is an AIM share for the future - we are sure it will perform for us one day.
Ceres Power: As a leader in fuel cell technology enabling production of clean, low-cost energy. Ceres, like ITM which we also hold, is seen by Interactive Investor (www.ii.co.uk) as company worth investing in. This year it announced a partnership with Bosch and Weichai (China), which indicates huge potential for the company.
Yes: we are showing a loss on this share - but we are a patient lot and will hold on to this one.
Diageo: This is the largest holding in the China Dolls portfolio. Purchased at the start of the pandemic, we are showing a 33% profit. This month it rose by 5%. However Deutsche Bank issued a downgrade on 29 June, new price target 3220p. (curently 3695) They think Diageo is the only large drinks manufacturer not trading at a discount and could be hit by consumers cutting back on spending. We may look to cashing in some of our profit at next months meeting, but for the moment we are holding - it is a good solid company with great dividend payments.
Trainline: This share has started to recover from the Covid fallout. It has risen over 67% over the past six months, 25% of this over the last month. They have recently reported a faster than anticipated recovery in rail passengers. Holding for now.
QinetiQ: Purchased at our June meeting and already showing a small profit of 3%. But 3% over one month is good in the current climate.
Unite Group: Up 10% last month, this share continues to perform. They commented that sales have progressed well in the 2nd quarter with 90% of rooms sold for the 2022/23
academic year compared to 81% for 2021/22 and 80% 2020/21. Unite valued its funds worth 2.97 Billion. We have held this share for years and are showing almost 60% profit. We are holding onto this solid company.
DISCUSSION:
SOMERO ENTERPRISES INC.
Questor, (the Daily Telegraph writer ) recently wrote a large article recommending Somero Enterprises This is an American company based in Florida (the share is quoted in £'s on the FTSE)
It manufactures laser-guided and technologically innovative machinery used in horizontal concrete placement.
It is a niche market with very few competitors so it makes very high returns and has a lot of repeat business: they keep their customers for life.
It is showing high profit margins of 35% and is expanding into Australia.
Its expansion has been almost entirely organic, resisting temptation to make acquisitions.
It has a strong balance sheet and clean accounts. Cash flow is good.
Questor is puzzled why it has a p/e valuation of 7.8 x when looking at the company figures it could well be valued at 20x
This is partly due to the company's low profile - and its cyclical nature tied to the construction industry.
The stock is currently sitting at 427 (a rise of 8% since Questor's article) but has been given a fair valuation of 800
Questor says it is a relatively low risk with a potential for big gains.
We will keep a watch on this share and perhaps buy in next month.
That's it for July - STAY COOL - see you next month.
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.