Tag: SELL

Dominos (DOM) – Sell, Brickability (BRCK), VP (VP.) and Epwin (EPWN) buy

Portfolio No Comments

Dominos

Dominos leapt after a smashing set of results and it seemed rude to not take a 50%+ profit after just 6 months. I just think it’s got a bit ahead of itself now and hopefully it might sink back later in the year to buy back in again.

Sell price: @ £4.02
Buy price: £2.62
Dividend income: 2.5%

Gain: 55.5% total (2.5% + 53%) 130% pa (not compounded)

With the Dominos money burning a hole in my pocket I’ve been playing with the Stock Screening tool on Stockopedia. I’m looking for companies within 20% of their 52 week low, with a reasonable PER and PEG. Minimum size £20M although in practise I’m more comfortable with the £50M + Organisations. I also filtered out certain sectors as they are not for me. Pure exploration and Biotech for instance.

This threw up a list of about 120 and I trawled through the figures this weekend. This narrowed it down to a shortlist of about 40, which I then ranked, then had enough cash to purchase three of the top ones. Plenty more to purchase, just no cash to do so… ones that didn’t make the cut, for instance, include the Banks Barclays and tarnished NatWest.

Brickability

Brickability Group PLC is a United Kingdom-based construction materials distributor. The Company supplies facing bricks, blocks, rainscreen cladding systems, architectural masonry, paving, roof tiles and slates to the construction industry (Stockopedia)

Does what it says on the tin. Makes bricks. Income has grown rapidly in its 3 years of trading from £11m to £600m with profits of about 5-10%. Positive trading update and cost pressures are abating. Taken a modest stake as it’s a smaller than my normal size Organisation.

Buy @ 54.47p with a Dividend yield of 6% and PER of 5.4
Portfolio %: 2.2%
Total Portfolio Holdings: 2.2%

VP Group

Vp plc is a United Kingdom-based equipment rental specialist company. The Company provides specialist products and services to a diverse range of end markets, including infrastructure, construction, housebuilding, and energy (Stockopedia)

More steadily rising turnover and profit, but positive noises from the Management team. Brisk are not yet going out of fashion, especially with the drive for more affordable housing, whatever the colour of the Government over the next 5 years.

Buy @ £5.79 with a Dividend yield of 6.5% and a PER of 7
Portfolio %: 2.8%
Total Portfolio Holdings: 2.8%

Epwin Group

Epwin Group Plc is a manufacturer and supplier of energy efficient and low-maintenance building products, including windows, doors, and fascia systems. (Stockopedia)

Energy efficient”, “low maintenance”. Nice.

Trading Update end July:

Trading ahead of a strong 2022 comparative; confident of achieving full year expectations

and

Trading during the first half of 2023 was in line with the Board’s expectations. Revenues increased to approximately £180 million, with the Group continuing to trade ahead of a strong 2022 comparative.

Buy @ 72.3p with a Dividend yield of 6.2% and a PER of 7.3
Portfolio %: 2.2%
Total Portfolio Holdings: 2.2%

888 Reports next week (15th). It’s bounced back strongly and quickly since the sell-off after I sold, so it will be interesting to see whet the effects of interest rate rises have had on both its costs and the ability of its customers to place bets. I’m still cautious and, so far, it’s about 10% below my selling price.

I’ll update the Portfolio later this month.

888 (888 Holdings – Sell)

Portfolio 1 Comment

Sometimes you cannot look a Gift Horse in the mouth, as they say.

Earlier on this month a couple of Gambling Companies declared a stake in 888. This has put a rocket under the share price, taking it from about 70p to about £1.20 today.

888 is a high risk stock since it bought William Hill for massive amounts of debt. Whilst a lot of it (70%) is fixed debt for a couple of years, the rest is not. In their April Trading Statement, 888 highlighted debt being a possible issue, restraining investment. Since then, inflation remains stubbornly high and rates have climbed, with more to come.

Whilst I don’t follow Sports (so take my thoughts with a pinch of salt) , I’m not aware of any significant events in 2023 that could lead to a surge in betting. Similarly, a lot of fixed rate Mortgages are coming to an end and money is going to be tighter for the remainder of 2023.

This is a Business with a high level of debt that means that any dip in earnings will put the Business into the Red. Debt payments will have a disproportionate effect on profitability. With a half-year Report due any day now, there is a not insignificant chance that earnings will be down and possibly even some sort of money raising to pay down debt.

For me the downsides currently outweigh the upsides, so I have sold all my holdings. I’ll have a muse as to what to do with the cash. TEP, IHC, CEY and ULVR are under consideration.

Sell price (ave): £1.195

Buy price (ave): £0.79

Dividend income: 0

Gain: 50% total (0% + 50%) 250% pa (I wish….)

CEY (Centamin – Sell) / 888 (888 Holdings – Buy)

Portfolio No Comments

OK, so after musing over the weekend I’ve swapped my Centamin Holdings for more 888.

Centamin just trundles on. I don’t think it’s ever going to make vast profits – a lot of it is given away as parts of its Joint Ventures with (say) the Egyptian Government. Reviewing figures it seems to be moderate feast and moderate famine, a lot depending on the Gold price.

Nothing fundamentally wrong with the Business but I’m happy to trade the cycles, so if it drops to double digits I’ll revisit it. I’m happy to sell at a 10% profit over 2 months.

Sell price: £1.0981

Buy price: 99.25p

Dividend income: 0

Gain: 10% total (0% + 10%) 60% pa (linear, not compounded)

As promised, I’ve topped up my 888 Holdings at 82.3p to a shade under 8% of the whole portfolio. That will do for now.

Associated British Foods (ABF – Sell)

Portfolio No Comments

Owner of the Primark Brand. It’s had a good run and the dividend yield is not particularly appealing, so have sold for now. Bricks and mortar shops are still finding it tough, although Primark does seem to defy the odds with its rock-bottom prices. Held for approximately 1 year for a 17.5% gain.

Sell price: £19.45

Average Buy price: £16.80

Dividend income: Circa 2.5% total

Gain: 17.5% total (2.5% + 15%), 17.5%pa

HSBC (HSBA – Sell)

Portfolio No Comments

I’ve held HSBC since 2019. Since then, obviously, we’ve had the COVID crisis and at one point the shareholding had halved in price. It has now made that back, and then some. Whilst its latest report was very positive, there are headwinds with Russia and China. China’s intentions towards Taiwan may also be a concern.

At the moment, China is treading a fine line between trading with Europe, but also refusing to condemn Russia. If Putin decides to accelerate action, we might see China’s true colours forced out into the open.

After its recent run, the shares are looking a bit toppy with a ‘nothing special’ dividend yield. Sold for a 12% return over 3 years. Not planning on doing anything with the cash as yet but will keep an eye on markets, especially with the ongoing downbeat housing results (My Persimmon holdings took a 10% beating today after downbeat results).

Portfolio allocation report not yet updated so still shows HSBC.

Sell price: £6.37

Average Buy price: £6.18

Dividend income: Circa 10% total

Gain: 12% total (2% + 10%), 4%pa

Proudly powered by WordPress & Skyrocket Themes

MENU

Navigation

This Blog must in no way be construed as investment advice. I’m not an Advisor, I’m just a Private Investor that takes an interest in Stocks and Shares as a way of increasing my standard of Living & having a bit of fun. Feel free to comment. All comments are Moderated before publication, keep them relevant, short and interesting otherwise they won’t be published. My Blog, my Rules.

Don’t make me responsible for any decisions that you make off the back of anything I write here. Do Your Own Research. Capice?

I agree