Monthly Recap – December 2018

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Monthly Recap Image December 2018

November Buys And Sells…

As always, this is a recap of my trading activity from the previous month.

After a busy October (for me) where I had 2 purchases and 10 sales (as I had a bit of a clear out) November was much more subdued – With just 2 purchases, in order of execution…

Bought into Volex (VLX) on the 9th of November. This had been on my Standard Technical Screen previously and revised forecasts were provided in a broker note by Liberium on Research Tree (after a decent Trading Update on the 9th November). Applying my usual analysis approach for Growth and Value – I saw potential for a 100%+ 2 year upside here (without discounting the 20% or so Net Cash (vs current Market Cap)). Forecast is for 20%+ EPS growth in 2019E and 2020E. On a PER of 10 or so this presented a decent opportunity for me. My main concern is the below industry standard (and rather poor) Op Margin of 2.7% or so.

On the 26th November Sanderson (SND) (had also previously been on my Standard Technical Screen) reported ahead of expectations results. There was also a subsequent favourable update from N+1 Singer (on Research Tree). I usually like to see more than this (just a 20% or so upside (based on 10% or so forecast EPS growth in each of the next 2 years)) but, with ahead of expectations results, above Industry standard ROCE and Op Margins, a 3.5%+ yield and Net Cash I decided to buy in.

I remain just over 25% in Cash.

Buy Date Stock Code Buy Price Sell Price Sell Date % Movement
9-Nov-18 VLX 88.00      
26-Nov-18 SND 92.90      

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