Safestyle UK sells double glazing windows, doors and conservatories, and due to the contraction in the double glazing market in the last year have suffered three profit warnings, which means that their share price has taken a battering.

However, they have a strong balance sheet, their current assets at £26m in the last interim report stand at £3m more than all liabilities combined, and I am a big fan of companies whose current assets amount to more than all liabilities combined.

In fact, companies like that are just my type of company, and at the current share price they pay a good dividend, the yield close to 6%, and I see the potential for perhaps yet another special dividend this year (they paid one out last year, and have a policy of paying out excess cash to shareholders).

A few things I am weary of, for one, the gap between the current assets and total liabilities is dwindling, but this is mainly because of the new factory that they have built, which is a one off cost, and because of the special dividend that they paid out last year, so I am alright with that.

Something else I am weary of, how many houses need double glazing these days really, or rather, with Brexit on the horizon, how many households are willing to pay to upgrade to new windows; further more, how many are willing to pay to have a conservatory built; then there is the housing market, it's been doing well for a good while now, and I don't know why, but something just sits uneasy with me about the current state of it.

Regardless, weighing up the pros and cons, I've decided to purchase Safestyle UK at 201p per share.  The plan is for a long term buy, but I will be keeping a close eye on things, so that might change.

The other three purchases I have made are more trade based buys than long term holds, Marks and Spencers have dipped below 300p a share, which to me despite all the tailwinds against them at current, for example the fact they lag massively in the online world, and the fact that food division is teetering, to me is a buy point.  Will see.  Probably sell if they get above 340p.

Petrofac is…

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