January 2019 Portfolio Update

Thursday, Jan 31 2019 by
30

Well here we are a month into 2019 already. I can't say that I look back on 2018 with fond memories (at least not from an investing perspective) but I've got a new page in my spreadsheet and optimism has returned to the markets. This happy sentiment may not last but with many of my holdings putting out in-line statements, at worst, and reporting good trading I think that it's only reasonable for their share prices to show a little life!

Purchases

Robert Walters Bought 565p - January 19

On receipt of the Q4 trading update, as covered below, I decided pretty quickly that this was a holding worth topping up. There's no doubt that the business is really flying in its two largest territories and I like the way in which management are quick to rebalance costs as markets change. This is probably why sales per employee have been steadily increasing since the 2008 crisis. In addition the CEO has recently been buying in the market, adding to his £12m shareholding, and so I feel that I'm in good company!

NB I've put together a lengthy analysis on Robert Walters here which dives deep into its financial performance both individually and against sector peers.

Learning Technologies Bought 100p - January 19

I've been watching this company for a while as I'm a bit of an Andrew Brode fan and I know quite a few people who rate the company highly. That said it's always looked a bit expensive with a rather patchy track record; in other words there's a lot of hope in the price. Still I now have a starter position and two factors have led to this. Firstly the price has fallen markedly from its brief high back in September, which leads to the forward P/E being a half-reasonable 25 or so. Secondly they put out a "significantly ahead of expectations" update this week with adjusted EBIT of not less than £26.5m and net debt sharply reduced to £11.5m. This is excellent news and I fully expected the share price to jump 10-20%. Instead, to spite me, it fell 20% after I'd bought in first thing! I guess some people took fright at a fall in Content & Services revenue even though this is a lumpy business? Never mind - I'll wait for the results to see whether the 2019 forecast of 26% growth is…

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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. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. 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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Robert Walters plc is a United Kingdom-based professional recruitment consultancy. The Company offers specialist professional recruitment and recruitment process outsourcing services. The Company's segments are Asia Pacific, UK, Europe and Other International. Other International consists of the United States, South Africa, the Middle East and Brazil. As part of its specialist professional recruitment services, it offers permanent, contract and interim recruitment across accounting and finance, banking and financial services, engineering, human resources, information technology, legal, sales and marketing, secretarial and support, and supply chain and procurement disciplines. Its Resource Solutions business offers recruitment process outsourcing (RPO) and managed services. The Company's subsidiaries include Robert Walters Pty Limited, Resource Solutions Corporation Pty Limited, Robert Walters Germany GMBH and Robert Walters Brazil Limitada, among others. more »

LSE Price
576p
Change
-2.4%
Mkt Cap (£m)
447.7
P/E (fwd)
11.5
Yield (fwd)
2.8

Impax Asset Management Group plc is an investment company offering listed and private equity strategies primarily to institutional clients. The Company has six listed equity strategies: Specialists, Leaders, Water, Asia-Pacific, Global Opportunities, and Food and Agriculture. Its real assets business comprises renewable power generation and sustainable property private equity funds. The Company has investments sectors, such as energy efficiency, which includes power network and buildings; alternative energy, which include solar, wind and biofuels; water infrastructure/technologies, which include treatment and utilities; pollution control, which include pollution control solutions, and testing and gas sensing; food, agriculture and forestry, which include logistics and sustainable forestry; waste management and technologies, which include tech equipment and hazardous, and environmental support services, which include consultancies and diversified environmental. more »

LSE Price
233.5p
Change
-1.9%
Mkt Cap (£m)
310.4
P/E (fwd)
18.1
Yield (fwd)
2.0

Softcat Plc is an information technology (IT) reseller and IT infrastructure solutions provider to the corporate and public sector markets. The Company provides organizations with workplace, datacenter and networking, and security solutions combined with all the services required to design, implement, support and manage them, on premise or in the cloud. Its solutions include asset management, business intelligence (BI) and analytics, cloud and managed services, collaboration, commodity sourcing, datacenter, end-user computing and mobility, networking and security, print, professional services and software licensing. The Company provides corporate and public sector organizations with software licensing, workplace technology, datacenter infrastructure, networking and security. The Company, through its portfolio of IT services, addresses IT sourcing challenges, software licensing needs, IT solutions and adapts the cloud through managed services. more »

LSE Price
876.5p
Change
 
Mkt Cap (£m)
1,738
P/E (fwd)
26.2
Yield (fwd)
2.8



  Is LON:RWA fundamentally strong or weak? Find out More »


5 Posts on this Thread show/hide all

covkid 1st Feb 1 of 5

Well done with the performance Damian & thanks for write up.

| Link | Share | 2 replies
Damian Cannon 1st Feb 2 of 5
2

In reply to post #442808

Thanks - having done these reviews for a year I'm pretty happy with the way they're going (and it's fair to say that last year was a heck of a time to start writing up my investing thoughts!).

Blog: Ambling Randomly
| Link | Share
mmarkkj777 1st Feb 3 of 5
1

Hi Damian,

A good report and well done for the bounce back. We hold a few common shares (learning tech, games workshop,PPH, etc.) so I hope you continue to do well :-) .

I remember comparing notes on here at the tail end of last year. You having held and me having reverted to cash (well 85% anyway).

Well done for the bounce back in Jan.

Reminds me of an old quote:

Success is not final.
Failure is not fatal:
it is the courage to continue that counts.

-Winston Churchill

As true in trading as it is in life!

Cheers.

| Link | Share | 1 reply
abtan 1st Feb 4 of 5

In reply to post #442808

Completely agree with this. Thank you

| Link | Share
Damian Cannon 1st Feb 5 of 5

In reply to post #442853

Nice quote from Churchill. I also rather like "If you’re going through hell, keep going."

Blog: Ambling Randomly
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