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|