Monthly Recap – October 2018

Monthly Recap Image October 2018

September Buys And Sells…

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

Quite a bit of activity this month with 1 sale and 4 new purchases to report, in order of execution…

First up is the sale which was on the 4th September and it was Filta Group (FLTA). Interims were reported on this day with Revenue up 15%, PBT up 13%, Basic EPS up 24% and the Interim Dividend up 10% or so. There was a negative reaction to these results and on a PER of 27 (expecting a little more) I pressed the Sell button and kind of regretted it almost immediately. Later in the day after reading the latest Broker note from Research Tree it was clear I’d made a mistake and put an order in but did not get filled. This remains on my Watchlist.

2 new purchases on 19th September…

Bought into Mission Marketing (TMMG), which was already on my Tech Screen, after interims confirmed all round double digit growth for a company on a PER of less than 6. I see good upside potential (with a PER catch up) plus there’s a 4% or so yield to boot.

Also decided to buy into AFH Financial (AFHP) on this day, having been meaning to do so for a while. There’s just so much to like here such as the 20%+ Revenue growth, 40%+ PBT growth and 35%+ EPS growth (2017A, 2018E and 2019E). On a PER <20 (and Net Cash of £20m, current Market Cap £150m) this was a no brainer for me.

2 new purchases also made on 24th September, both of which I had been meaning to buy into for a while as they both were on my Tech Screen (my “advanced one”, not yet documented – But it is exactly the same as the one above only it highlights companies that also have an EPS 3 Year CAGR % greater than the current PER) – As a note, TMMG and AFHP (above) both also qualified for this “advanced screen”…

Bought into Miton (MGR) after interims confirmed Revenue up 24.3%, Adjusted PBT up 51.7% and Adjusted Diluted EPS up about 50%. On a PER of 13 or so I have no idea why I left it so long here.

In a buying mood, also bought into Adept Telecom (ADT), now called “AdEPT Technology Group”. As mentioned above this has been appearing on my “advanced screen” for some time and with some others adding valuable analysis on Twitter I decided to press the Buy button today. As well as looking good technically the fundamentals look like this is on a PEG around the 0.5 level – If forecasts are met I see room here too for some “PER Catch Up”.

I remain about 20% or so in Cash.

All comments as always, most welcome.

Buy Date Stock Code Buy Price Sell Price Sell Date % Movement
1-Jun-18 FLTA 210.00 222.38 4-Sep-18 6%
19-Sep-18 TMMG 53.92
19-Sep-18 AFHP 404.00
24-Sep-18 MGR 67.84
24-Sep-18 ADT 380.00
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