My April 2018 Portfolio Update – Net Worth: £126,701 (+£16,790)

The gain in net worth during April 2018 was £16,790. This increases the total net worth of my portfolio to £126,701. The per-share value of my portfolio increased by 14.2%. Since inception in August 2015, the per-share value has grown by 296%.

Welcome to my April 2018 portfolio update here on Smart Systematic Investor!

Each month I publish an update to what’s been happening in my investment portfolio. I include a detailed profit and loss report revealing the exact positions that made or lost money. I also show which stocks I’ve bought or sold during the month and give an explanation of why I’ve bought or sold. Along with that are lessons learned and plans for the future.READ MORE…

My March 2018 Portfolio Update – Net Worth: £109,911 (+£18,872)

The gain in net worth during March 2018 was £18,872. This increases the total net worth of my portfolio to £109,911. The per-share value of my portfolio increased by 19.4%. Since inception in August 2015, the per-share value has grown by 246%.

Welcome to my March 2018 portfolio update here on Smart Systematic Investor!

Each month I publish an update to what’s been happening in my investment portfolio. My goal is was to reach a net worth of £100,000 by December 2019.

I include a detailed profit and loss report revealing the exact positions that made or lost money. I also show which stocks I’ve bought or sold during the month and give an explanation of why I’ve bought or sold. Along with that are lessons learned and plans for the future.

READ MORE…

My February 2018 Portfolio Update – Net Worth: £91,039 (-£6,150)

The loss in net worth during February 2018 was £6,150. This reduces the total net worth of my portfolio to £91,039. The per-share value of my portfolio decreased by 7.3%. Since inception in August 2015, the per-share value has grown by 190%.

Welcome to my February 2018 portfolio update here on Smart Systematic Investor!

Each month I publish an update to what’s been happening in my investment portfolio. My goal is to reach a net worth of £100,000 by December 2019.

I include a detailed profit and loss report revealing the exact positions that made or lost money. I also show which stocks I’ve bought or sold during the month and give an explanation of why I’ve bought or sold. Along with that are lessons learned and plans for the future.READ MORE…

My January 2018 Portfolio Update – Net Worth: £97,189 (+£5,474)

The gain in net worth during January 2018 was £5,474. This brings the total net worth of my portfolio to £97,189. The per-share value of my portfolio increased by +4.8%. Since inception in August 2015, the per-share value has grown by 212.8%.

Welcome to my January 2018 portfolio update here on Smart Systematic Investor!

Each month I publish an update to what’s been happening in my investment portfolio. My goal is to reach a net worth of £100,000 by December 2019.

I always include a detailed profit and loss report revealing the exact positions that made or lost money. I also show which stocks I’ve bought or sold during the month. Along with that are lessons learned and plans for the future.READ MORE…

Burford Capital (BUR) 2017 Interim Results

Litigation funder Burford growth on by bigger caseload. No end of the trend in sight.

READ MORE…

My December 2017 Portfolio Update – Net Worth: £91,715 (+£5,022)

My gain in net worth during December 2017 was £5,022. This brings the total net worth of my portfolio to £91,715. The per-share value increased by 4.6%. Since inception in August 2015, the per-share value of my portfolio has grown by 198.3%.

Welcome to my December 2017 portfolio update here on Smart Systematic Investor.

Each month I publish an update to what’s been happening in my investment portfolio. My goal is to reach a net worth of £100,000 by December 2019.

In every update, I include a detailed profit and loss report revealing the exact positions that made or lost money. I also show which stocks I’ve bought or sold during the month and give an explanation of why I’ve bought or sold. Along with that are lessons learned and plans for the future.

I’ve been posting these reports since August 2015, so if you want to go back into the archives and check them out, head on over to the portfolio results page.

My investment strategy

I invest in UK stocks trading on the London Stock Exchange. I systematically screen the market for stocks that show the following:

  1. Profitability – almost every company I own is generating a profit
  2. Sustainable Growth – I virtually always invest in companies that are growing both revenue and earnings
  3. Compelling valuation – I am looking for stocks that trade at reasonable price to earnings ratio
  4. Strong balance sheet – I prefer companies with strong balance sheets and little debt

This is just a short summary. Check out my investment strategy page where I explain the approach in greater detail.

What happened in December?

The year 2017 is over. And what a year this was. My total net worth soard to a new record high of £91,715. That is nearly £60k higher than it was a year ago and brings me actually very close to my £100,000 goal.

The per-share value increased 130% this year. Markets were generally bullish this year. My benchmark, the FTSE All-Share index rose 9% for the year. And this general positive trend in the markets certainly helped. But I do really hope that some of my performance this year is due to my stock picking and not to pure luck.

I’ve been a bit lazy for the past month and didn’t write the monthly updates. One of my new year resulutions is to become better at writing up my thoughts and understandings in 2018.

In December, the per-share value of the portfolio rose 4.6% . Since I started investing in August 2015, the per-share value of my portfolio has grown by 198.3%. In comparison, the FTSE All-Share Index gained 22.9% over the same period.

Of course the per-share calculation takes out the effects of monthly cash additions and redemptions.

This means, that if you had done a one-time investment of £1,000 in August 2015, your investment would now be worth £2,983 if you had followed all my trades. An equal one-time investment of £1,000 in the FTSE All Share Index would now be worth £1,229.

Investments

The table below shows all my open positions at the end of this month. You can click on each position to get straight to my trade alert which includes the investment thesis on why I bought the position in the first place.

A lot of movement in my portfolio last month. There were 3 purchases and 2 sales. Let’s go through them.

Purchases

There were no purchases in December.

Sales

Best of the Best (BOTB) – BOTB issued a trading update that effectively changes the nature of this company to a gambling operator.

The game that BOTB is running is called spot the ball. In the game, you will be shown a photograph that does not contain a ball. You must use your skill and judgement to decide where you think the centre of the ball should be. Your chosen points will be recorded. At the end of the game, the same Spot the Ball picture you used to choose your coordinates is shown to a judging panel comprised of professional sporting experts. In the presence of an independent lawyer they mark where they think, in their professional opinion, the centre of the ball should be. The winner is simply the person who is closest to the judge’s position.

So far BOTB have argued that this is not a game of chance but an actual competition. Yet, the given announcement seem to indicate just this. A new tax ruling seems to indicate that BOTB is now liable to Remote Gaming Duty (RGD).

When it turns out to be a game of chance then BOTB will become a gambling operator. This has most certainly implications. I can’t fully grasp the effect of this, so I stay on the side of caution. Therefore I’ve exited my position. In the end there was a loss of £960.

Holdings

Burford Capital (BUR) – No significant updates on BUR in December. The share price traded 6% lower.

Bioventix (BVXP) – The same goes for BVXP. A decline of 6% for the month.

Fevertree (FEVR) – After the fantastic trading update in November, the sentiment for this company is still strong. Shares finished trading 17% higher in December.

Gear4Music (G4M) – No news for G4M. Nevertheless the stock finished the month higher, up 12%.

Games Workshop (GAW) – Winner in performance this month was GAW. The shares went up 34% in December. The reason was a very upbeat trading statement.

Plus 500 (PLUS) – PLUS was down 5% for the month.

S & U (SUS) – SUS was down 4% for the month.

Taptica (TAP) – Even without any news, shares in TAP were 14% higher in December.

My September 2017 Portfolio Update – Net Worth: £84,237 (+£5,786)

My gain in net worth during September 2017 was £5,786. This brings the total net worth of my portfolio to £84,237. The per-share value increased by 6%. Since inception in August 2015, the per-share value of my portfolio has grown by 183.6%.

Welcome to my September 2017 portfolio update here on Smart Systematic Investor.

Each month I publish an update to what’s been happening in my investment portfolio. My goal is to reach a net worth of £100,000 by December 2019.

In every update, I include a detailed profit and loss report revealing the exact positions that made or lost money. I also show which stocks I’ve bought or sold during the month and give an explanation of why I’ve bought or sold. Along with that are lessons learned and plans for the future.

I’ve been posting these reports since August 2015, so if you want to go back into the archives and check them out, head on over to the portfolio results page.

My investment strategy

I invest in UK stocks trading on the London Stock Exchange. I systematically screen the market for stocks that show the following:

  1. Profitability – almost every company I own is generating a profit
  2. Sustainable Growth – I virtually always invest in companies that are growing both revenue and earnings
  3. Compelling valuation – I am looking for stocks that trade at reasonable price to earnings ratio
  4. Strong balance sheet – I prefer companies with strong balance sheets and little debt

This is just a short summary. Check out my investment strategy page where I explain the approach in greater detail.

What happened in September?

This month still saw a lot of news regarding Brexit and a possible trade deal. There was major debate wether Mrs May did enough to restart the stalled negotiations or not enough to push them beyond the current sticking points of the Divorce bill and citizens’ rights.

There may be a two-year transition period to allow new trade arrangements to be put in place smoothly. During this period, Britain would continue to be subject to EU rules, including the jurisdiction of the European Court of Justice.

The credit-rating agency, Moody’s cut its rating for UK sovereign debt from AA2 to AA1: its lowest ever credit rating. Moody’s believes that Brexit will be negative for the country’s medium-term economic growth prospects, and that growth will not recover to its historic trend rate over the coming years.

On economic news, unemployment continuing to edge lower. It reached 4.3%. Inflation was returning to the 2.9% level seen in May. However, second quarter GDP growth was revised downwards from 1.7% to 1.5%.

Equities traded lower during the month, with the FTSE 100 losing 0.8%. Some comfort was found in the mid-cap space where the Mid 250 Index managed a gain of 0.4%.

My portfolio didn’t seem to mind the market decline in large cap stocks. While my benchmark, the FTSE All-Share index, lost 0.6%, my portfolio increased 6% in value.

Of course the net worth also soared to a new all time high. In the end it was £5,786 higher during September.

As always, the monthly net worth figure includes an additional £1,000 of fresh money that I save during the month from my day job. The actual mark-to-market gain from stocks in my portfolio was £4,786.

This brings the total net worth of my portfolio to £84,237.

 

The per-share value of the portfolio rose 6% in September. Since I started investing in August 2015, the per-share value of my portfolio has grown by 183.6%. In comparison, the FTSE All-Share Index gained 17.9% over the same period.

Of course the per-share calculation takes out the effects of monthly cash additions and redemptions.

This means, that if you had done a one-time investment of £1,000 in August 2015, your investment would now be worth £2,836 if you had followed all my trades. An equal one-time investment of £1,000 in the FTSE All Share Index would now be worth £1,179.

Investments

The table below shows all my open positions at the end of this month. You can click on each position to get straight to my trade alert which includes the investment thesis on why I bought the position in the first place.

 

 

 

Purchases

Games Workshop (GAW) – I bought 400 shares of Games Workshop (GAW). The company designs, manufactures and sells fantasy miniatures and related products. I have to admit that I’m late to the party. I reviewed the company already on 11th January 2017 and concluded that:

The company is a global leader, generates high margins, targets a high return on capital, has apparently strong and lasting brands, and quickly pays out excess cash. So maybe it is worth a shot?

But I didn’t act on it. Now the price has more than doubled since my review. Additionally, the company issued a trading update that read very well.

Following on from the Group’s update in July, trading for the first quarter of the current financial year has continued strongly . Sales and, given the high operational gearing of the business, profits for 2017/18 to date are therefore well above the same period in the prior year.

The earnings forecast for FY/18 figures 99.2p per share (FY/17 93.4p). Based on this the company trades on a price-earnings multiple of 16.5. But given that the trading update speaks of well above profits, there might be a strong chance that earnings will be significantly higher.

S&U (SUS) – I bought 500 shares of S&U (SUS). SUS provides motor finance and specialist lending service. The company issued a strong trading update on the 4th August. New loan transactions have been up by 20% and monthly collections are 27% higher than a year ago. Nevertheless the stock price hasn’t reacted much. The shares still trade in a downtrend. There will be half year results out soon where I believe the company will report good numbers. In anticipation of this I bought today as the company ticks a lot of boxes.

The return on capital is at a very good 16%. Earnings per share have been rising 33% in FY/16 and 28% in FY/17. The company is paying a dividend yield of nearly 5% and the price earnings ratio is just above 10. Also the company has issued a good trading update, so I believe half year results can only suprise on the upside.

Gear4Music (G4M) – Gear4music is the largest UK based online retailer of musical instruments and music equipment. I sold the shares after the company shocked many people with a trading update that didn’t give any hard figures and hinted that results in H1 wouldn’t be as good as expected.

Now the company corrected this an has given us the revenue figures that everyone has been waiting for. One can only speculate why they didn’t do this in their first trading update and cause so much confusion.

Anyway, the numbers look good. UK sales have risen by 30% to £17.9 million while sales in the rest of the world increased by a staggering 70% to £13.3 million. In total, this gives revenues of £31.2 million. A plus of 44% compared to H1/17.

The company also mentions that they are ahead of their expectations for H1/18. And again, costs are mentioned. A period of investment into our proposition and infrastructure in H1 has increased our operational costs and restricted margins in the short term. Encouragingly, revenue growth over the last six weeks supports our expectation that, as previously stated, revenue and profitability is likely to be more H2 weighted in FY18 than in FY17.

I think these are good numbers. Costs will be higher for this half but the important Christmas period will be ahead of us and given that revenue is still rising fast, I can see the share price gaining traction eventually again.

Sales

There were no sales in September.

Holdings

Bioventix (BVXP) – The company issued a positive trading update at the beginning of the month.

The Board is pleased to report that revenues for the financial year ended 30 June 2017 are expected to be marginally in excess of £7M (2015/16: £5.5M). Since the cost-base of the Company continues to follow a similar shallow trajectory as in previous years, both revenues and profits before tax are expected to be ahead of market expectations for the year ended 30 June 2017.

This set the shares much higher. BVXP closed the month with a plus of nearly 25%.

Taptica (TAP) – After TAP did their $50m acquisition of Tremor Video, the company reported its interim results this month. The growth story is still very much alive. The shares ended the month with a gain of 9%.

Plus 500 (PLUS) – The company announced in a trading update that revenue and profits are ahead of current market expectations. As the update came at the end of the month, so the share price shows a 2% loss for the month.

Burford Capital (BUR) – No news for BUR. Still the company was in a bit of a consolidation. 10.5% loss for the month.

Fevertree (FEVR) – FEVR also showed a large loss this month. This is not unusual after the large gains from last month. Down 11% for September.

Best of the Best (BOTB) – A small gain for BOTB this month. Up 2.2% for September.

My July 2017 Portfolio Update – Net Worth: £67,268 (+£5,414)

My gain in net worth during July 2017 was £5,414. This brings the total net worth of my portfolio to £67,268. The per-share value increased by 7%. Since inception in August 2015, the per-share value of my portfolio has grown by 132.7%.

Welcome to my July 2017 portfolio update here on Smart Systematic Investor.

Each month I publish an update to what’s been happening in my investment portfolio. My goal is to reach a net worth of £100,000 by December 2019.

In every update, I include a detailed profit and loss report revealing the exact positions that made or lost money. I also show which stocks I’ve bought or sold during the month and give an explanation of why I’ve bought or sold. Along with that are lessons learned and plans for the future.

I’ve been posting these reports since August 2015, so if you want to go back into the archives and check them out, head on over to the portfolio results page.

My investment strategy

I invest in UK stocks trading on the London Stock Exchange. I systematically screen the market for stocks that show the following:

  1. Profitability – almost every company I own is generating a profit
  2. Sustainable Growth – I virtually always invest in companies that are growing both revenue and earnings
  3. Compelling valuation – I am looking for stocks that trade at reasonable price to earnings ratio
  4. Strong balance sheet – I prefer companies with strong balance sheets and little debt

This is just a short summary. Check out my investment strategy page where I explain the approach in greater detail.

What happened in July?

Equity markets across the world were broadly positive again during July. Investors and politicians seemed to ease into the summer period. There was hardly any news and thin trading volumes.

Major market equities offered returns ranging from +0.2% for the Euro Stoxx 50 Index to +1.9% for the S&P 500. Emerging markets were the better performers during the month.

Economic news during the month was largely disappointing. Inflation dropped from 2.9% in May to just 2.6% in June. This was due, to some degree, to the softening in the oil price, which fell by 4.1% in June. This decline continued in July, as oil lost a further 2.8%. Core inflation stood at 2.4% in June and is projected to rise slightly in July.

Brexit negotiations are now underway. Yet, there are hardly any facts out. It’s more a matter of spin and posturing than actual information. Theresa May, now leading a weakened minority Government, is seeking to portray a tough image, reportedly being prepared to walk out of talks over Britain’s divorce bill.

The FTSE 100 Index ended the month 0.8% higher, whilst smaller companies managed a gain of 2.1% during a quiet month leading into the holiday season. The UK market remains in positive territory for the year-to-date, showing a modest 3.2% gain.

The positive drift also showed in my portfolio. Nearly all of my holdings and new purchases showed gains at the end of the month. This helped my portfolio to a new all time high. The net worth rose £5,414 during July.

As always, the monthly net worth figure includes an additional £1,000 of fresh money that I save during the month from my day job. The actual mark-to-market gain from stocks in my portfolio was £4,414.

This brings the total net worth of my portfolio to £67,268.

The per-share value of the portfolio rose 7% in July. Since I started investing in August 2015, the per-share value of my portfolio has grown by 132.7%. In comparison, the FTSE All-Share Index gained 17.8% over the same period.

Of course the per-share calculation takes out the effects of monthly cash additions and redemptions.

This means, that if you had done a one-time investment of £1,000 in August 2015, your investment would now be worth £2,327 if you had followed all my trades. An equal one-time investment of £1,000 in the FTSE All Share Index would now be worth £1,178.

Investments

The table below shows all my open positions at the end of this month. You can click on each position to get straight to my trade alert which includes the investment thesis on why I bought the position in the first place.

A lot of movement in my portfolio last month. There were 3 purchases and 2 sales. Let’s go through them.

Purchases

Plus 500 (PLUS) – I bought 3,000 shares of contract for difference broker PLUS in July. The company issued a trading statement stating that they expect revenues and profits for the year to be significantly ahead of current market expectations.

The company is dirt cheap at a price-earnings ratio of around 7 based on 2016 earnings. Broker forecasts are quite a bit lower for the year 2017. Yet, these are based on the assumption that regulatory rules will affect earnings for the financial year 2017. But this will not be the case. The FCA is now expected to implement its rules in the first half of 2018.

Because of this, I can’t see how Plus will have earings any lower than in the financial year 2016. By all means it might just keep on growing as it has done in previous years. This assumption is not too far fetched given the trading update. The shares in PLUS already soared 10% higher since I bought them

Burford Capital (BUR) – I only sold this share last month due to worries about a global downturn in the equity markets. I’m still slightly worried, but I’m missing out on rising prices in great companies. I always liked this company. The fundamentals haven’t changed, so I bought back in for the same amount as I had sold in June. This paid out handsomely already with BUR trading 13% higher than my purchase price.

Fevertree (FEVR) – After carbonated mixer company FEVR reported exceptional half year results, I have to admit that I was wrong when I thought that the company might grow at a slower rate. Revenue and earnings growth is as strong as in 2016 and there is no sign of slowing down for the moment. I was clearly too cautious when I sold my position in March. I missed a good bit of the stock price gains. Currently, the company is on a run and I can’t see an end to it in the medium future. For this month, I’m up 12.5% with my position.

Sales

Frontier Developments (FDEV) – It seems like I’m going in and out of this one. Now I’m out again. I sold my shares of game developer FDEV for an average price of 525p. This amounts to a total value of £5,250 and gave me a total gain of £800.

The problem with this share was that it is very illiquid. After the recent trading update, shares have moved another 30 percent up. I decided to take my profits as and reduce once again my positions in the very illquid share category.

Gear4Music (G4M) – I sold my shares for a total gain of £2704. That is a fantastic 82% return on my investment. What was the reason for the sell? Gears4music have released a trading statement this morning which had quite few problems in it:

First, no hard figures for revenue or profits are given, or in fact anything. This is strongly in contrast to the more detailed trading updates that they used to give.

Second, a suggestion that this year will be more strongly H2 weighted. Often statements that all will come good in H2 are precursors to profit warnings, if things don’t work out as expected.

And last, there are lots of additional costs to be justified by hoped for future growth. Given this trading update combined with a price-earnings factor of around 70, the risk of a substantial fall in price is quite large. So I decided to take my profits for the moment and stay on the sidelines.

Holdings

Bioventix (BVXP) – Again, nothing new to report from this company. The price didn’t go nowhere this month. A small loss of 1.1%.

Taptica (TAP) – TAP did a smallish acquisition in July. I bought the majority shareholding in Adinnovation Inc., a leader in Japan’s mobile advertising industry. The price was $5.7m. The Acquisition is being funded out of Taptica’s own cash resources. The markets liked that and TAP finished once again up for the month.

My June 2017 Portfolio Update – Net Worth: £61,854 (+£1,721)

My gain in net worth during June 2017 was £1,721. This brings the total net worth of my portfolio to £61,854. The per-share value increased by 1.2%. Since inception in August 2015, the per-share value of my portfolio has grown by 117.5%.

Welcome to my June 2017 portfolio update here on Smart Systematic Investor.

Each month I publish an update to what’s been happening in my investment portfolio. My goal is to reach a net worth of £100,000 by December 2019.

In every update, I include a detailed profit and loss report revealing the exact positions that made or lost money. I also show which stocks I’ve bought or sold during the month and give an explanation of why I’ve bought or sold. Along with that are lessons learned and plans for the future.READ MORE…

My May 2017 Portfolio Update – Net Worth: £60,133 (+£7,248)

My gain in net worth during May 2017 was £7,248. This brings the total net worth of my portfolio to £60,133. The per-share value increased by 11.6%. Since inception in August 2015, the per-share value of my portfolio has grown by 114.9%.

Welcome to my May 2017 portfolio update here on Smart Systematic Investor.

Each month I publish an update to what’s been happening in my investment portfolio. My goal is to reach a net worth of £100,000 by December 2019.

In every update, I include a detailed profit and loss report revealing the exact positions that made or lost money. I also show which stocks I’ve bought or sold during the month and give an explanation of why I’ve bought or sold. Along with that are lessons learned and plans for the future.

I’ve been posting these reports since August 2015, so if you want to go back into the archives and check them out, head on over to the portfolio results page.

My investment strategy

I invest in UK stocks trading on the London Stock Exchange. I systematically screen the market for stocks that show the following:

  1. Profitability – almost every company I own is generating a profit
  2. Sustainable Growth – I virtually always invest in companies that are growing both revenue and earnings
  3. Compelling valuation – I am looking for stocks that trade at reasonable price to earnings ratio
  4. Strong balance sheet – I prefer companies with strong balance sheets and little debt

This is just a short summary. Check out my investment strategy page where I explain the approach in greater detail.

What happened in May 2017?

Major equity markets around the world turned in positive performances in May. In the UK, markets were buoyed to new highs by expectations that Theresa May’s electoral gamble will pay off and deliver a substantial Conservative majority ahead of the start of Brexit negotiations later in June.

However, a reported narrowing of the polls, and poor performance by the Prime Minister in televised debates, could mean that a wide range of election outcomes may be possible. Recent polls suggest that whilst Labour is gaining ground, its gains have been mostly at the expense of the minor parties.

Large-cap stocks were the clear winners during May. The FTSE 100 large cap index gained 4.4%. The FTSE 250 mid-cap index rose by a more modest 1.8%, while smaller companies gained 2.3%.

The benchmark for my portfolio, the FTSE All-Share index increased a healthy 3.9%. And while markets were up to new heights, my portfolio did even better.

The net worth of my portfolio rose £7,248 during May. This is now the 8th month in a row with positive results.

As always, the monthly net worth figure includes an additional £1,000 of fresh money that I save during the month from my day job. The actual mark-to-market gain from stocks in my portfolio was £6,248.

This brings the total net worth of my portfolio to £60,133.

The per-share value of the portfolio rose 11.6% in May. Since I started investing in August 2015, the per-share value of my portfolio has grown by 114.9%. In comparison, the FTSE All-Share Index gained 19.8% over the same period.

Of course the per-share calculation takes out the effects of monthly cash additions and redemptions.

This means, that if you had done a one-time investment of £1,000 in August 2015, your investment would now be worth £2,149 if you had followed all my trades. An equal one-time investment of £1,000 in the FTSE All Share Index would now be worth £1,198.

Investments

The table below shows all my open positions at the end of this month. You can click on each position to get straight to my trade alert which includes the investment thesis on why I bought the position in the first place.

Purchases

Luceco (LUCE) – Luceco is a manufacturer and distributor of LED lighting products. After the latest positive trading statement I had another look at the accounts and couldn’t see any red flags, so I decided to buy some shares of this company.

The reason is basically in the upbeat trading statement:

The momentum reported at the Group’s full year results has continued with significant year on year growth in revenue and profit. Growth has been driven by strong market share gains within the key brands in the UK and other newer markets, and the ongoing expansion of the product ranges.

And:

While the key autumn trading period is still to come, the board has confidence in the year ahead and now expects the Group’s full year results to be marginally ahead of current market expectations.

Broker forecasts are currently seeing earnings per share at 10.1p. So marginally ahead could maybe mean 10.5p. Based on the excellent quality figures of this share (return on capital is at 30% and return on equity at 47%) and the current growth rate (about 30% based on my earnings per share estimeat), the price earnings ratio of 28.8 doesn’t look to excessive. Also remember that all growth is organic. Based on these facts, I think a long position is a conservative bet in this share.

Holdings

Burford Capital (BUR) – BUR shares continued its momentum. The company issued a sterling bond, raising £175m of funds to increase their fire power for investments. The markets saw this positive. BUR shares climbed 14% over the course of the month.

Bioventix (BVXP) – BVXP also had a good month. The company announced that Siemens finally launched the new troponin test. The test is a key biomarker used in heart attack diagnostics. This launch is significant for the company as the test uses antibodies created by BVXP and accordingly the Company will receive product royalties based on Siemens activities in this area. The market like this. BVXP closed 11% higher for the month.

Frontier Develpment (FDEV) – FDEV announced that it will release its latest game on Playstation. I’m not sure that this was the cause for the stock rise or not. But in the end, shares traded 23% higher.

Gear4Music (G4M) – The largest winner by far this month was G4M. The shares went up a staggering 52% and closed at 808.50p. G4M released its full year results on 9 May with revenues increasing 58% and operating profit up 192%. It seemed like the market approved those results.

Taptica (TAP) – TAP continued to trend up. In the end there was a small plus of 1.7%. There were no important news this month.

Focusrite (TUNE) – TUNE issued its half year results . Figures were great with earnings per share up by 52.2%. The market clearly liked the results. TUNE traded 37% higher for the month.

Sales

There were no sales this month.

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