Monthly Recap – June 2019

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Monthly Recap Image June 2019

May Buys And Sells…

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

Note: Most of my trading activity is a based on the analysis from my Parity PEG Price Reports.

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Each month I analyse at least 20 stocks in a Monthly Parity PEG Price Report. The report usually includes coverage of any stocks I have traded (bought or sold) that month – Those detailed here.

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There’s been 2 purchases (and no sales), in order of execution…

On the 16th May I bought into BOKU Inc (BOKU), a stock that had been on my Watch List for a while. This is not usually one for me as EPS is not forecast to grow in 2019E (it’s forecast to be the same as 2018A). It is however forecast to rise 200% in 2020E from the 2018A and 2019E level.  This is supported with 45% Revenue growth in 2018A, 50% in 2019E and 32% in 2020E.  I little more speculative than my usual purchases perhaps and will be keen (hope) to see that operational gearing kick in as updates and results come through.

On 22nd May I finally decided to buy another stock on my Watch List, PCF (PCF).  Two things I didn’t like here, the HUGE Net Debt (but it is a lender, so I was willing to overlook this) and the (1 Year) Downtrend.  What I do like…  The ROCE is well above the Industry Median at 12% and the Operating Margin, although below the Industry Median, is still an acceptable 20% (this is forecast to rise to 30%+ in 2019E).   Revenue is forecast to grow 30%+ in both 2019E and 2020E and PBT is pretty much in-line with this growth.  EPS is forecast to grow by 30% or so in both years, so is the Dividend.  On a PER of 11 I see there being reasonable scope for 100% 2 Year upside here, to fair value.

Buy Date Stock Code Buy Price Sell Price Sell Date % Movement
16-May-19 BOKU 131.50      
22-May-19 PCF 33.80      

I am around 15% or so in Cash now.

Example Parity PEG Price Report – For T Clarke (CTO)

T-Clarke-CTO-June-2019-PPPR


For the reasoning behind the Parity PEG Price Report and access to 20 of them every month (including most or all of those I have traded) – You can find details here.

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