Monthly Recap – September 2018

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Monthly Recap Image September 2018

August Buys And Sells…

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

After a lot of activity in July in August I have just 2 new purchases and 1 new sale to report, in order of execution…

Bought into Bloomsbury Publishing (BMY) on the 2nd August. On a PER of 15 or so, recent EPS growth (based on Stockopedia data) was 12.1% 2018A with forecasts as 18.9% (2019E) and 13.3% (2020E). Throw in a 3.5% or so yield and I just decided it was time to pay up. Kicker – New publications doing well, legacy publications (Harry Potter) also doing well and potential for on-line to (hopefully) improve too. Also met my Standard Tech Screen at the time.

My final purchase was on the 8th August when I bought into Gordon Dadds (GOR) – Brought to my attention by a fellow investor. The PER is <15. Based on a Broker note by Arden Partners on 28th June (from Research Tree) Revenue is forecast to increase 30% in each of the next 2 years, PBT is forecast to increase 50% or so in each of those years with EPS forecasts growing at the same rate (50%). The Dividend is forecast to grow about 40% per annum (current yield circa 3.0%) and there’s Cash too, about £8m (15% or so of the current Market Cap). Kicker – Has Cash to expand with additional acquisitions as well as the opportunity for organic growth from cross-referral to “acquired” clients.

My only sale was on 9th August when I sold the remaining half of my Game Digital (GMD) holding. Having sold half last year after it doubled I sold the remainder for a 41% gain. The reason for selling – I just couldn’t work out where this was heading and I just have no idea what’s going to happen.

I remain about 20% – 25% in Cash.

All comments as always, most welcome.

Buy Date Stock Code Buy Price Sell Price Sell Date % Movement
2-Aug-18 BMY 236.00      
8-Aug-18 GOR 187.76      
17-Jul-17 GMD * 20.25 28.61 9-Aug-18 41%

Note * – Total Profit on GMD = 70.5% based on selling half at 100% and half at 41%.

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