SIF Portfolio: Oxford Metrics' recent pullback may be a buying opportunity

Wednesday, Aug 16 2017 by
SIF Portfolio Oxford Metrics recent pullback may be a buying opportunity

I’m a firm believer in the value of keeping some kind of written record of your investing decisions. Doing this helps me to double-check the logic behind my decisions. An argument can sometimes appear watertight at first, but may fall apart when you try to put it down on paper. Having a written record of decisions also provides a useful window into your past thinking.

Unfortunately, life and work sometimes get in the way of good intentions. I don’t always manage to document my investing decisions as fully as I’d like to. Similarly, I’ve found this week that the records I’ve kept for my SIF Portfolio trades aren’t as detailed as I’d like them to be.

In July, I sold small-cap asset manager Miton Group from the portfolio for a total return of 46.3%. Yesterday, I noticed that it had reappeared in my screen. Had it been there last month, I wouldn’t have sold. So what’s changed?

Identifying why a company doesn’t qualify for a screen is very simple, thanks to Stockopedia’s excellent Checklist tool. Stocks fall out of the screen when they no longer pass the 14 rules I use.

Back in July, I used the checklist tool to find out why Miton no longer qualified for the screen. But I didn’t write down the results, and didn’t include them in my article. And now of course I’ve forgotten what the checklist showed. So I’ve no idea of the quantitative reasons behind the decision to sell, which is frustrating.

From now on, I will keep a record of this data for each stock sold from the portfolio. But in the meantime, I need to move on.

I’m not going to add Miton back into the portfolio, at least not this week. Although I’m still keen on this firm, the portfolio already contains four other financial stocks, including an asset manager (Standard Life Aberdeen).

In contrast, the portfolio doesn’t contain any technology stocks at the moment:


Back in July, I discussed the portfolio’s lack of technology stocks. I suggested four companies which might qualify if their share prices fell slightly.

I’m happy to say that this has now happened. Software developer Oxford Metrics has appeared on my screen this week. The AIM-listed group’s shares have…

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Oxford Metrics plc, formerly OMG plc, is the United Kingdom-based international software company. The Company develops and markets analytics software for motion measurement and infrastructure asset management to clients in over 70 countries worldwide. The Company helps highways authorities manage and maintain their road networks, hospitals and clinicians decide therapeutic strategies and Hollywood studios create visual effects. The Company operates through two subsidiaries: Vicon and Yotta. Vicon is engaged in motion measurement analysis. Yotta provides cloud-based infrastructure asset management software to central and local government agencies and other infrastructure owners. The Company provides software for the government, life sciences, entertainment and engineering sectors. more »

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7 Comments on this Article show/hide all

cafcash49 16th Aug 1 of 7

Thank you for this, a good insight into the mindset of a good investor. I always value reading how you asses a stock and how you reach a buying decision. many thanks. Charles

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Andrew niven 16th Aug 2 of 7

I like the look of this company that seems to tick a lot of the " moat qualities"
Would you agree?

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edwinlefever 17th Aug 3 of 7

It's cagr eps is patchy and not impressive over the long-term. It dilutes its share base. It looks over-valued for a growth company and directors are selling. I don't see much attraction at present.

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lemonjar 17th Aug 4 of 7

FWIW, I noticed Robby Burns bought the stock back in June, at 60p with a target set at 85p, so it's not done much in the time since.

I suppose a vote of confidence from the naked trader at least!

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Mike888 22nd Aug 5 of 7

For me I'd probably have given this stock a miss. A SP of 58 close to very strong resistance at circa 60 and a spread of 345bps means in my book little to no profit in the short term until a positive catalyst appears, I also think this may have a little further to drop, and if so could well change my perspective on it.  Maybe Roland the emerging resistance was you trigger to exit originally ?

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lemonjar 19th Oct 6 of 7

£OMG's short but fairly upbeat interim statement is out today, accounting for the rise in SP. Decided to jump in with a small stake on the back of it

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hayashi22 19th Oct 7 of 7

I agree re Oxford Metrics. See the recent inertia as a pause for breath ahead of a move north.But there again I would as bought stock at 58p.

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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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