THINGS CAN ONLY GET BETTER
The share market has improved hugely since our last "chat". Many shares are recovering well and in this current, uncertain, climate that is all we can hope for.
So: we had our first ZOOM China Dolls meeting last Wednesay, which was great for me as I was able to join in with the chat and voice my opinion.
We discussed our portfolio and here is a brief summary of our meeting. Shares listed in alphabetical order.
ABF – Primark has cancelled or suspended £256m of orders from suppliers in Bangladesh. With no 0n-line business to clear stock it may end up cancelling many of the suspended orders. It constituted 49% of revenue for ABF last year, but by closing its stores it represents a loss of £650m in net sales per month. HOLD
BHP – Up over last month. Share Centre buy Hargreaves Lansdown buy. Other brokers strong buy. Copper and zinc mine in Peru, in which BHP has a 33.75% interest, is closing temporarily because of Coronavirus. CLOUDCALL – Have announced appointment of Paul Clark as its chief technology officer on Thursday. The share rose slightly on 9th April to 76.00p (from a high in July 2019 of 119.00p). Rated a buy on Share Centre.
CODEMASTERS -269.50 151 million shares in issue. Over the last year, Codemasters share price has been traded in a range of 125 hitting a high of 317.5 and a low of 192.5 . HOLD
CRODA – The share price has been recovering over the last month and is up a further 6.5% on the week. Brokers: Neutral HOLD
DECHRA – No news seen on this company. Our March valuation showed a price of 2146p...........not sitting at 2634p so a good gain this month. High in Jan of 3058p A strong buy recommendation from the Share Centre and other brokers. HOLD
DIAGEO –Share price is up nearly 20% in the month. We invested a further £1,300 on 26 March and this holding is up 3.2% Diageo has said it will continue to pay dividends but has suspended its share buyback scheme for the moment. HOLD FEVER-TREE Up over last month SC buy. Other brokers buy. Britvic and Diageo have seen very similar moves in share price. Year low 888.9. PE ratio 41.2. Divided yield 1.11 HOLD GENUS – 791p today Like all shares a massive loss when virus took hold but now nearly back up to where it was. According to an article on the iii site by Stockopedia - it beat earnings forecast which sent its share soaring and it is listed top as one of the shares doing their best to weather the market. HOLD HALMA – Has also has shown signs of recovery. The Share price is up a little today, 2.5%. Financial position remains robust. AGM 23 April. Brokers: Buy. HOLD HOMESERVE – 1151.00 gives up some gains from earlier in the week. Expects higher annual earnings implements cost cuts and a dividend review amid uncertainty caused by Covid 19 outbreak. HOLD
HOTEL CHOCOLAT – Slight rise to 267.50p on 9th April.
Recommended as a buy on Share Centre. HOLD
HURRICANE – Hurricane up over last month. SC buy Other brokers strong buy. HOLD
INVINITY ENERGY SYSTEMS – Formerly Red T Energy. It was taken over or merged by IES which is the new quoted company. We have been appointed 407 shares and our holding is valued at £183.15 HOLD for now
M&G – This company has been hit by Insurance claims due to the virus - March price 89p - now sitting at 143.45 - so steadily rising. HOLD
OCADO – 2nd quarter growth had doubled compared to the 1st quarter but this was due to stockpiling.
Ocado was forced to shut down website temporarily as it was overwhelmed by the demand.
We could consider buying more. HOLD or buy more
PRUDENTIAL – This year high in February of 1489p - low in March of 783p. Now sitting at 1040p Share Centre recommend a strong buy. Again, (like M & G) Pru has been hit by the Insurance side of its business. But it is a solid company and should regain ground, so HOLD
REACH - 52 week high 186 52 week low 62 Currently 88 This share is rising slowly.
This is a quote in one of the financials: There might be better investments than Reach out there but you will have to work hard to find them. HOLD/BUY
SEGRO – Fortunately it is defensively positioned against the economic disruption that has accompanied Covid-19. Due to e-commerce their rental income has swelled in recent years and they have managed to collect a higher proportion of rent due in respect of the second quarter than those operating in the retail and leisure sectors. HOLD
SIMEC – They continue to supply electricity to the Grid from MeyGen project in Scotland. To preserve cash, the Chairman and non-executive. Directors have taken 20% cut in fees and the CEO and executive team have taken 20% salary deferral. Remains Strong Buy with brokers. HOLD
DS SMITH – Last month 271. This month 308. This share is bouncing back. HOLD
SCIENCE IN SPORT – Last month 32. This month 28 Over the last 3 years SIS has seen earnings per share move in a positive direction by an average of 12% per year. HOLD/SELL
Current value of our investment £1,500
We bought on 25 February for 528p per share. This dropped to 202p on 23 March which was its low point. Current price is 330p so recovering well but we are still down over 40%
CE has taken a 50% pay cut, directors 20% and staff furloughed so they seem to be taking all the right actions during the lockdown and hopefully the recovery will continue.Once travel allowed, Trainline should benefit from the closure of Flybe as a regional travel option. HOLD
UNITE GROUP –814p today which is down from this time last month - (940p.) Unite announced its reservations for 2020/21 are standing at 79% which is in line with same period last year. However they realise with travel restrictions the intake of international students could be at risk.
HOLD or sell some/
Decisons: We sold some of our Unite Group shares in order to buy more of D.S.Smith and Genus. We also invested in a new company Tristel.
Tristel – The company specialises in infection prevention. The products are mostly used in hospitals worldwide. Company has been going 27 years. Turnover £26million and pays a small dividend. Gaining approval for new products is a notoriously slow process in the healthcare industry and Tristel has taken time to become established. Looking ahead, sales and profits should accelerate as coronavirus concentrates minds on effective hygiene. It is an Aim share and was tipped last Sunday at £4.45, price today £4.80
SO THAT'S IT FOR THIS MONTH. THANKS HUGELY TO OUR SECRETARY, PAM G. WHO WRITES OUR REPORTS.
STAY SAFE EVERYONE AND KEEP WASHING THOSE HANDS.
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.
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