One advantage of being in an investment club is that you can invest in innovative companies that you may be cautious of if a singular investor.
With many changes happening in the car industry, and Boris mentioning that by 2030 he would like all cars to be electric, there is a modern future out there for car manufacturers.
At a recent Mello meeting (Mello Events) a talk by a company that stood out to us was "Surface Transforms" They manufacture ceramic braking systems giving a weight saving of 70% to existing brake systems. As we seem to be investing in the future at the moment we decided to take the plunge and bought £1500 of these AIM shares, currently sitting at 50p.
Smith DS: We are sitting patiently waiting for this share to rise as expected! The Times rate it as a long term buy with attractive growth dynamics and say the share is "insanely cheap".
We agree! Reports show a revenue to the 12 months up to April 2020 as £6 billion with pretax profits of £368 million. With current online packaging increasing it really should be doing better. Come on Smith DS - you can do it!
Trainline: This share showed a small rise in anticipation of a vaccine allowing office workers to return to their workplace. We wait in hope that a vaccine with get us all back to a normal life.
Genus: Continues to perform well! At it's highest in three years.
Codemasters: An American company has won the race to take over Codemasters. However investors are not happy with the mediocre price offered. Brokers say the price is not taking into account the growth prospects of Codemasters.
Halma: This is another share we bought after seeing a presentation at the Mello Events in 2018 since when it has increased by over 35%. Wallet Investor (a US investigative site) predicts the share may double over the next 5 years.
DISCUSSION: This week the government announced a large increase in the defence budget: so we are looking into two companies Qinetiq and BA Systems: the latter of which has just been awarded a £1.3 billiion contract for 38 Eurofighter Typhoon aircraft.
So that's just some of our news. See you all next month when hopefully we will be out of lockdown and looking forward to our Christmas celebrations. We have sadly postponed our Christmas lunch at the Chewton Glen Hotel but hope we can get together over Easter.
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.