My investment non-mistakes in 2012: Part 1

Friday, Jan 04 2013 by
4

If that last post was really tough to write at least this one should be much more fun - I get to focus on what went right! So here goes: a list of all my positions this year that contributed positively towards my returns, roughly in order of contribution to overall returns:

Trinity Mirror - TNI

If you were looking for a rollercoaster ride this year, Trinity Mirror (LON:TNI) was probably it. It started the year at 48p where I thought it was insanely cheap having bought in 2011 at prices of 54.8p and 43.9p respectively. I did a post on TMF where I tried to value TNI but long story short I thought that a) The business was still highly cash generative and not declining that quickly and b) The balance sheet was much stronger than it first appears due to the large amounts of freehold property that hasn't been revalued in over a decade, a pension deficit inflated by artificially low gilt yields and a deferred tax liability that's largely a figment of some daft accountant's imagination. I pegged my target value somewhere in the 100's and felt pretty happy with my purchases.

Naturally, the next thing the share did was a steady decline from March to May down to a low of 25.5p. Why? I wish I knew, I'm still a bit baffled by it. No significant news came out really to warrant a 50% decline in share price. Perhaps there was a distressed seller? Who knows. I'd love to say I was cool as a cucumber and accumulated a gigantic position to take full advantage but really I was questioning my analysis. What does someone else know that I don't? Maybe I'm underestimating the danger of the pension liability? What if the phone hacking situation is set to take down TNI? I researched and researched and still felt pretty confident the equity was worth far more than the market price so I topped up significantly at 30.7p and 26.9p in April and May. It was one of my biggest positions but no where near the "all-in" bet I'd have made if I'd been ultra-confident - ah well, hindsight investing is so easy isn't it?

Since then my thesis has played out fairly well - the company announced profits…

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Trinity Mirror plc is a national and regional multimedia content publisher in the United Kingdom, producing and distributing content through newspapers and associated digital platforms. The Company operates through four segments: Publishing, which includes all of its newspapers and associated digital publishing; Printing, which provides printing services to the publishing segment and to third parties; Specialist Digital, which includes its digital recruitment classified business and its digital marketing services businesses, and Central, which includes revenue and costs not allocated to the operational divisions. The Company publishes paid-for national newspapers and paid-for and free regional newspapers, and operates a portfolio of related digital products. Its publishing brands include the Daily Mirror, the Sunday Mirror, the Sunday People, the Daily Record, the Sunday Mail and daily titles in metropolitan cities. It also publishes Metros in each of its key metropolitan markets. more »

LSE Price
111.5p
Change
-1.3%
Mkt Cap (£m)
320.3
P/E (fwd)
3.1
Yield (fwd)
5.3

Judges Scientific Plc (Judges) is a United-Kingdom based company. The Company is engaged in the design, manufacture andsale of scientific instruments.Judges operates through two segments, including the Materials Sciences group and the Vacuum group.The Materials Sciences group supplies measurement equipment across both public and private sectors.The Vacuum group designs and manufactures instruments to aid the examination of samples in optical and electron microscopes and to create motion, heating and cooling within ultra-high vacuum chambers. The Company’s subsidiaries include Fire TestingTechnologyLimited, PE.fiberoptics Limited, UHV Design Limited, Aitchee Engineering Limited, Quorum Technologies Limited, Sircal Instruments(UK) Limited, Global Digital Systems Limited and Scientifica Limited. more »

LSE Price
1885p
Change
1.5%
Mkt Cap (£m)
113.3
P/E (fwd)
16.4
Yield (fwd)
1.4

PV Crystalox Solar PLC is a United Kingdom-based supplier to the global photovoltaic industry. The Company produces multicrystalline silicon ingots and wafers for use in solar electricity generation systems. The Company's three-stage production process includes ingot production, whereby multicrystalline silicon ingots are directionally solidified; block production, and wafer production. The block production process or sectioning of ingots into blocks is carried out at the Company's facilities in the United Kingdom and by its partners in Japan. Wafering of the blocks is done using wire saws at the Company's facility in Erfurt, Germany and in Japan by its wafering subcontractor. The Company markets its products in the United States, the United Kingdom, China and Japan. more »

LSE Price
12.59p
Change
-4.1%
Mkt Cap (£m)
21.0
P/E (fwd)
n/a
Yield (fwd)
n/a



  Is Trinity Mirror fundamentally strong or weak? Find out More »


2 Comments on this Article show/hide all

Monty9 31st Jul '13 1 of 2

Re JDGS accounting issues. As an accountant I understand the rules and find them all the more annoying for that. Ret he convertible stock it puts the gain on the connected party through the PNL. Logically it should do the same with the whol

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Monty9 31st Jul '13 2 of 2


Sorry... Whole share capital so it shows market cap - and a huge deficit on ret earnings. The standard is, IMHO, plain wrong.

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About CantEatValue

CantEatValue

Part-time private investor predominantly in micro-cap UK equities or anywhere I can find inefficiencies.

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