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THE UPS AND DOWNS OF INVESTING



THE "UPS"


UNITE GROUP: is the UK's largest owner, manager and developer of purpose-built student accommodation serving the country's world-leading Higher Education sector. They provide a home for 74,000 students, across 172 properties, in 25 leading university towns and cities. Their accommodation is high quality and affordable as well as safe and secure.

The China Dolls invested in this share years ago when the price was 568p. We have since added to our investment, and although the last tranche is showing a small loss of 5% we have an overall profit of over 80%. Unite struggled over the Covid pandemic, but stood by their students by offering greatly reduced rentals. They are recovering well and now sit at 1079p. We are holding onto this share.


CORNISH METALS: In January of this year this share soared to 28p. We bought at 14p in July 2021 - so we doubled our money over a short period of time. Since January 2022 the share dropped back but is now recovering and is sitting at 19p which still gives us a healthy profit. We are holding onto this one too!


SEGRO: Shares in Segro plunged to their lowest levels for six months after a downgrade from analysts. However, the China Dolls are still showing a healthy profit having bought in at 770p.

The company – which is one of the UK’s largest commercial property groups – sank 10.3 per cent. It fell after brokers cut the target price to 1250p. It is now currently sitting at 1103p so a definite blow to our investment.

The downgrade marked a change of fortune for the company, whose profits surged during the pandemic as a boom in online shopping drove up demand for its warehouses.

The group’s profits for 2021 jumped 20 per cent to £356million, while the value of its portfolio increased by nearly 29 per cent to £18.4billion.

The dividend was also hiked 10 per cent to 24.3p per share.

Warehouse owners such as Segro emerged as pandemic lockdown winners as retailers scrambled for extra storage space to cope with the rising numbers of online delivery orders.

However demand is falling.

This is a strong, financially reliable company.

We are holding.


DIAGEO: Another share holding up well. Bought at the beginning of pandemic and showing a profit of around 18%. Another hold.


THE "DOWNS"


OCADO: We are very disappointed in the performance of this share which has dropped over 29% in the past month, mainly due to the effect of rising food and energy prices. However Directors and a non executive Chairman have invested heavily in the past month which is encouraging.

Ocado, like Segro, was a pandemic winner and we were showing a healthy profit until recently.

We will hang on in there and hope for a recovery.


REACH: Another disappointment. Fallen from 170p to 115p over the past two months. The market has experienced reduced advertiser demand and lower average yields, with the war in Ukraine significantly reducing the level of ‘brand safe’ content for news publishers. While this has led to lower growth than expected, Reach is improving the quality of their digital sales, with strong growth in higher yielding revenues.

On the plus side, China Dolls did sell a large tranche of our profit in December 2021 and we are still showing a profit of 23% on the remaining shares.

We are an optimistic bunch and are holding hoping for a recovery.


A B DYNAMICS: This company is a leading specialist in autonomous vehicle technology.

We had high hopes of the AIM share with the prospect of driverless cars. It has recently opened its £10 million Engineering Design Centre based in Wiltshire in response to significant growth and has shown a small rally in its share price. We are still showing a loss of 50%: but it is one for the future so we are holding.


DECISIONS:


BHP: We invested a further £1000 into BHP. A brilliant share in which we are showing almost 100% profit.


BAE Systems: We had been investigating BAE for a couple of months - then read that Questor recommended it as a long term addition to any portfolio. So we decided to invest £2000.

BAE is a British multinational arms, security, and aerospace company.

They provide some of the world’s most advanced, technology-led defence, aerospace and security solutions and employ a skilled workforce of 85,800 people in more than 40 countries. From state of the art cyber threat detection to flight control systems that enable pilots to make better decisions. They are constantly working to improve their technology.


That's it for this month. See you all in June.


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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