SIF Portfolio January review: IGR, TOT, CAMB & PAF

Wednesday, Jan 25 2017 by
25
SIF Portfolio January review IGR TOT CAMB amp PAF

My Stock in Focus screen is throwing up slim pickings at the moment. All five of the qualifying shares at the time of writing are already in the portfolio. I’m hoping for more choices next week. As this will be the last SIF portfolio article published in January, this week’s focus will be the portfolio’s monthly review.

There are four stocks up for review this month, each of which has spent at least six months in the portfolio. (Each company name is linked to my original article on the stock):

IG Design, Total Produce and Cambria Automobiles have now been in the portfolio for six months, so are due for review. Pan African Resources has been held for longer, so is kept under review each month.

IG Design

Giftware group IG Design had a StockRank of 97 when it joined the portfolio in July. It also qualified for the Jim Slater ZULU Principle, Naked Trader-esque and Value Momentum screens. All three of these have delivered annualised returns in excess of 20% since their inception, so my hopes were high for a solid performance.

IG Design hasn’t disappointed and trading has remained strong. The shares have risen by almost 50% following in-line trading updates in August and January, and upgraded guidance with the interim results in November. Paul Scott was impressed on both occasions and commented that the group might continue to grow into its valuation.

I share Paul’s view that this is a good company with good management, but this stock has now been in the portfolio six months and dropped out of the SIF screen. As a result, I’ll be selling it from the portfolio this week, in accordance with my rules.

One interesting point is that IG Design’s StockRank has fallen to 75 since it joined the portfolio. The shares now trade on 16.9 times current year earnings and the yield has dropped below 2%. Is the StockRank forewarning us that the value is already in the price? It will be interesting to see how the shares perform over the next six months.

IG’s share share price has risen by…

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As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


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IG Design Group plc, formerly International Greetings plc, is engaged in the design, manufacture and distribution of gift packaging and greetings; stationery and creative play products, and design-led giftware. The Company's geographic segments include UK and Asia; Europe; USA, and Australia. The Company sells its products in over 150,000 stores across approximately 80 countries. It also offers a portfolio of licensed and customer bespoke products suitable for sale through multi channel distribution. The Company's products include crackers, pens and pencils, stickers, single cards and gift wrap. The Company offers its products under the brands A Star, B Stationery, Papercraft and Pepperpot. Its subsidiaries include Artwrap Pty Ltd, International Greetings UK Ltd, International Greetings USA, Inc, International Greetings Asia Ltd, The Huizhou Gift International Greetings Company Limited, Hoomark BV, Anchor International BV and Hoomark S.p.z.o.o. more »

LSE Price
328p
Change
-0.3%
Mkt Cap (£m)
205.5
P/E (fwd)
17.0
Yield (fwd)
1.5

Total Produce plc is a fresh produce distributor in Europe. The Company is engaged in the growing, sourcing, importing, packaging, marketing and distribution of a range of fruits, vegetables and flowers. The Company's segments include Europe-Eurozone, Europe-Non-Eurozone and International. Its segments are engaged in the procurement, marketing and distribution of fresh produce and some healthfoods and consumer goods products. Its Europe-Eurozone segment is an aggregation of 12 operating segments in France, Ireland, Italy, the Netherlands and Spain. Its Europe-Non-Eurozone segment is an aggregation of six operating segments in Scandinavia, the United Kingdom, Poland and the Czech Republic. Its International segment is an aggregation of five operating segments in North America and India. Its subsidiaries include Total Produce Ireland Limited, which is a Fresh produce company, and Allegro Limited, which is engaged in Consumer products distribution. more »

LSE Price
173.5p
Change
2.1%
Mkt Cap (£m)
559.3
P/E (fwd)
15.4
Yield (fwd)
1.5

Cambria Automobiles plc is a motor dealer, which is engaged in the sale and servicing of motor vehicles. The Company is engaged in the provision of car vehicle sales, vehicle servicing and related services. It is a retailer of new and used cars, commercial vehicles and motorbikes. It operates on a dealership-by-dealership basis. It operates from approximately 30 sites with a total of over 50 dealer franchises. It operates dealerships across England, from the North West through the Midlands, down to Kent in the Southeast and across Exeter in the South West, trading under local brand names, such as Dees, Doves, Grange, Invicta, Motorparks and Pure Triumph. Its brand portfolio comprises Abarth, Alfa Romeo, Aston Martin, Dacia, Ford, Fiat, Honda, Jaguar, Jeep, Land Rover, Mazda, Nissan, Renault, Seat, Triumph, Vauxhall and Volvo. It also provides ancillary services. It offers finance and insurance for the execution of the transaction along with service plans to maintain the vehicle. more »

LSE Price
71.5p
Change
-2.1%
Mkt Cap (£m)
71.5
P/E (fwd)
8.0
Yield (fwd)
1.5



  Is IG Design fundamentally strong or weak? Find out More »


6 Comments on this Article show/hide all

gus 1065 27th Jan 1 of 6
1

Pan African Resources (LON:PAF) just issued an "in hours" trading update, so some might have missed it.

http://www.investegate.co.uk/pan-african-resources-plc/paf/trading-statement/20170127103000P7304/?fe=1&utm_source=FE%20Investegate%20Alerts&utm_medium=Email&utm_content=Announcement%20Alert%20Mail&utm_campaign=Pan%20African%20Resources%20PLC%20Alert

It's usually a bad sign when this happens although the key indicators all seem to be well up. However, the commentary/significance of the ZAR/£ currency movements leaves me a bit perplexed, echoing Roland's point above about the import of this factor.

Gus.

| Link | Share | 1 reply
herbie47 27th Jan 2 of 6

In reply to gus 1065, post #1

Yes thanks for that, i missed it. Why is it late? Not good. Actually the figures look ok but could have been expressed better I feel.

| Link | Share
REO100 28th Jan 3 of 6

A little harsh on timing of trading update, the August update was at the same time - I think this more likely to SA listing. As already mention the content of the update looks strong and the recent coal purchase encouraging.

| Link | Share
StudentSteve 28th Jan 4 of 6

I hold Cambria Automobiles (LON:CAMB) as I think it's a well run business at a very reasonable valuation. I think there's some protection to the downside due to the after sales profit and tangible asset backing. The impact that cheap credit has had on the market in recent years is interesting and I feel there's too many variables to model the impact the unwinding of this will have on dealers. I do feel that the impact of the predicted slowdown will hit manufacturers harder than dealers though as even in a reduced market, the dealers will continue to perform an essential service on behalf of the manufacturers.

I'm interested in what has driven the reduction in the Stockrank over the last 6 months?

| Link | Share
Flackwell 31st Jan 5 of 6

Sorry Student - meant to hit the up button but slipped/missed

| Link | Share
Trident 31st Jan 6 of 6

Re: PAF

The style of PAF announcements is akin to someone telling you in funereal tones you have won the Lottery. You're not sure if you have been told good news or bad!?

I suppose it makes change from AIM hype.

It seemed to me that PAF announced positives in increased production, currency gains, share reduction, and gold price received during the period. Muted reaction maybe a result of the lack of PR hurrah in the RNS and a wary look by the market at the forward price of Gold. But I can't help feeling the market has missed something substantially positive

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 Are IG Design's fundamentals sound as an investment? Find out More »



About Roland Head

Roland Head

Private investor & writer on stock markets with a particular fondness for free cash flow, dividends and value, plus an interest in resource stocks.In earlier life, I worked as an engineer in telecoms and IT. The quantitative, rule-based mindset required for this type of work is probably reflected in my investment style. Another factor that affects my investment choices is my experience working for a large telecoms company at the turn of the century, when tech stocks were booming. Watching this bubble inflate and then implode from the inside was very educational. more »

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