First things first: This Thursday at 12.30 pm the webcast we’ve all been waiting for is on…analysts James Samson, Mitch Sneddon and Simon Dumaresq will be joining me in the studio for a review of their portfolios across growth stocks, income and Listed Investment Companies (LIC). As you probably recall we had to suspend the first attempt at this webcast on the Thursday before Easter, I’m pleased to report all is now ready to roll…and if you had already registered then your existing registration will be sufficient. If you had not registered…well, lucky you, there is still a day or two to put your name down - click here.
You can get a good idea of how our income analyst James Samson has been travelling in his article today, while LIC specialist Mitchell Sneddon has also produced a quarterly review for your examination: Mitch has also put a ‘sell’ note on Cadence Capital for all the right reasons …it is too expensive…don’t miss his piece - there's a link to it in his summary below.
Next week we have two very interesting events:
Tuesday, April 12: Mitchell Sneddon's will be talking to Chris Stott, Chief Investment Officer at Wilson Asset management, and
on Thursday April 14: Mitch will be speaking to Kevin Bertoli, Portfolio manager at PM Capital Asian Opportunities Fund (PAF). We've yet to lock in precise times with these guys, we will have the full timetable next Monday.
One last thing - don't forget Alan Kohler is back with his Saturday morning email every weekend, if you missed his missive on Saturday morning simply click here.
Income First model portfolio
This week we take a broad look at how the portfolio has performed across the quarter - and it's doing what we expected it to. Read more here: Our Income Portfolio on target.
Growth First model portfolio
The Growth First portfolio has had a positive couple of weeks to be up 22 per cent, well above the benchmark and despite holding 35 per cent cash. The BKW share price reacted positively to its first half results, and the TOX share price has also rallied after its acquisition of Worth Recycling. XTD is slightly down since it entered our portfolio as the market waits for a potential South East Asian cross track deal. AMA Group appears to be moving up again after a period of consolidation. The full year result will be critical for AMA, to see evidence of the integration and synergies from the major acquisition of Gemini Accident Repair Centres. Empired (EPD) is still in the low 30's as the market waits for evidence that the worst effects from the sales re-structure have passed.
- Simon Dumaresq
LIC model portfolio
LIC model portfolio
This week sees the first sale from the portfolio. Cadence Capital Limited (CDM) is leaving for now. The only reason for this is the growing disconnect between share price and NTA. This has nothing to do with the portfolio’s short-term performance. This is why I am confident in saying CDM will see a return when it is at a better price. Click here to read the full article: Why we're taking a break from Cadence Capital.
In other news, BKI Investment Company (BKI) announced a share purchase plan (SPP) last week. I had a quick conversation with BKI managing director Tom Millner shortly after the announcement. Here is what he had to say on the SPP:
“We’ve decided to conduct another SPP as we see a number of attractive opportunities in the market. The SPP will enable us to use additional funds to increase BKI’s investment portfolio in a cost effective manner. Despite the worry and volatility in the market we are seeing some good opportunities for the long-term investor, with many stocks presenting attractive yields and valuations compared to historical averages. The SPP is a fair way to offer all BKI shareholders the opportunity to invest further with us. Shareholders can participate in the SPP without paying brokerage and new shares will be eligible for the Final FY16 dividend expected to be announced with our full year results in July.”
Current Share Price
BKI Investment Company
PM Capital Asian Opp.
Perpetual Equity Investment Co.
*Not including dilution effect of outstanding options
- Mitchell Sneddon