Buying into a Super Stock

When I first bought shares in Computacenter (LON:CCC) I had split the proceeds from the sale of my Avesco shares following the latter being taken over.

I split the proceeds into 3 different companies:

DCC (LON:DCC) - 50% of the cash went into this share, and I've recently exited this position at a healthy profit;

SCISYS (LON:SSY) - 20% of the cash found its way into a position in this software company as the business turned itself around from some difficult trading in the prior year.  It was initially a Super Stock, but has since fallen from grace following concerns around the funding of the European Space Agency as the UK exits Europe;

Computacenter (LON:CCC) - The final slice of the pie bought me what at the time equated to around a 4.5% portfolio position.  I had been following this company for a while, and finally bought shares in November 2016 at around 733 pence.

The Chairman and his wife had been spending big on shares, and I liked the way that management announced results and trading updates by tending to tell it like it is.

In addition the above factors, the company was showing a respectable Stock Rank of 92 at the time with momentum appearing to be on the up following the first half of 2016 being quite a poor start to the year, but a reassurance from management that trading was still in line and not getting any worse.

Since my purchase there have been only 4 announcements.....

Continuing to Trade in Line

As per the January Trading Update management indicated that trading had indeed stabilised in the UK and France, while Germany was continuing to trade well.

The Stock Rank remained at 92 and I was happy to hold shares in a company what seemed to be showing signs of a recovery.

Bland Final Results

However, when the company released the Final Results in March the CEO had this to say:

Whilst in 2016 we had record adjusted diluted EPS, it was a year of mixed fortune with the UK business profitability reducing materially but the overall Group performance showing resilience due to the strength in Germany and…

Finish reading with a 14 day trial

or Unlock with your email

Already have an account?
Login here