A sudden re-rating of shares in Judges Scientific means Christmas came early for the Share Sleuth portfolio, but also left me with a thorny problem.
This month Share Sleuth is spoilt for potential trades. Victrex, one of the most highly rated shares in Share Watch, is under-represented at 2.5% of the portfolio’s total value, whereas the share price of Judges Scientific has risen so much that the portfolio’s holding has grown to 8.5% of its total value, so it is over-represented.
This month, I have liquidated the Share Sleuth portfolio’s small holding of 434 shares in Colefax, raising £1,747 after a £10 deduction in lieu of broker fees. The share price, quoted by a broker, was 405p.
If you have read my contribution to Money Observer’s 40 tips for better investing, you will know I do not dwell on performance. However, it is not just Money Observer that is celebrating an anniversary this month. On 9 September, the Share Sleuth portfolio was 10 years old.
The last decade has not obviously been a propitious time to invest. The Share Sleuth portfolio was born towards the end of an 18-month-long contraction in the economy, the longest UK recession since quarterly figures on economic growth were first published in 1955.
This month, I have been agonising about something I am very bad at: selling a loser. Specifically, I have been torn between reason and sentiment, which is ironic because that is what System1, the company concerned, is all about.
Last month’s column ended with Portmeirion on the brink of expulsion from the Share Sleuth portfolio. I feared the company, which owns popular tableware brands including Portmeirion Botanic Garden, Spode Christmas Tree and Royal Worcester, might be drifting strategically.
News that Science has acquired 9% of Frontier Smart Technologies has sealed the former company’s fate as far as the Share Sleuth portfolio is concerned. On 28 May, I liquidated the shareholding.
This month, I have added RM, a company I profiled in the May issue’s Share Watch pages, to the Share Sleuth portfolio. I was cautious about it back then, but digging into its history has emboldened me.
RM supplies schools with equipment and IT, and examination boards with e-marking software. These businesses are not obviously natural bedfellows, which means the company is complex and has to do lots of things well – one reason for my caution.
This month, I have refrained from trading, although I might have added shares in Anpario had I realised the portfolio had enough cash to add a small holding. The company briefly strayed into value territory and now sits right on the cusp by my estimation. Like Porvair, Anpario has been on my watch list for many years.
In what must be the most active start to a year in Share Sleuth’s near 10-year history, I have traded for a third time in 2019, swapping a fraction of the portfolio’s holding in Solid State for a small shareholding in Quartix.