Small Cap Value Report (Fri 17 Nov 2017) - Portfolio management, CTO, REC, CLLN

Thursday, Nov 16 2017 by

Good morning and Happy Friday!

This is the usual placeholder article, published the night before, to enable early comments and suggestions from readers.



Good morning!

It's quiet in RNS-land, with only a few announcements of interest today.

So I thought I'd spend a few moments explaining what I've been doing with my personal portfolio this year - and please remember that these articles don't count as advice, merely discussion!

One of the practical reasons an article like this can never offer an advisory service is because each of us has our own individual situations, with our own individual investment goals, time horizon, risk tolerance, liquidity requirements and tax situation.

Because of this, even if we all had exactly the same opinion on particular stocks, and by some miracle it was the correct opinion, it wouldn't follow that we would all want to invest the same way. We would still have to tailor our portfolios to each of our individual needs.

With that out of the way: this is what I've been doing in 2017.

In the first half of this year, I added IG Group (LON:IGG) and Next (LON:NXT) to my portfolio (currently 5% and 4% of my portfolio, respectively).

In the second half, so far, I have mostly been selling. This was due to my personal situation where I was bidding on a property and needed to be ready to buy it. So I sold up my lowest-conviction shares and moved 40% into cash.

However, bids on that property eventually moved to a level which I thought represented poor value, so I let it go.

Since then, I've been trying to figure out what is an appropriate level of risk exposure for someone who wants to make a property purchase within the short-term (e.g. within two to three years). As always, greed and fear need to be balanced. There is not going to be an exact or a perfectly scientific answer.

One thing that plays on my mind is the belief that with the FTSE at c. 7400 and the Dow at 23,500, there is the pronounced risk of a broad market sell-off.

In normal circumstances, I would welcome such a sell-off for the buying opportunities it would present, but in my specific circumstances,…

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All my own views. I am not regulated by the FSA. No advice.

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TClarke plc is a United Kingdom-based building services company, which delivers electrical, mechanical, and information and communications technology (ICT) services. The Company provides electrical and mechanical contracting and related services to the construction industry and end users. Its geographical segments include London and South East, Central and South West, the North and Scotland. The Company's businesses include Intelligent Buildings Green Technologies, Facilities Management, Transport, Mission Critical, Manufacturing Services, Residential & Hotels, M&E Contracting and Design & Build. The Company within its M&E contracting business has capabilities in sectors, including commercial offices, retail, education, healthcare, financial services and media. Its Manufacturing Services business includes in-house precision prefabrication and engineering services. Its projects include Beckley Court, Chiswick Park, Kettering Hospital, Project Nova, Mitie Care Home and Rathbone Square. more »

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Record plc (Record) is a United Kingdom-based company, which is engaged in the provision of currency management services. The Company's suite of products is divided in two categories: Currency Hedging and Currency for Return products. It also offers solutions to individual client requirements. Its Currency Hedging mandates are primarily risk reducing in nature. Its suite of Hedging products includes Passive Hedging and Dynamic Hedging. Its Currency for Return mandates are return seeking in nature. The range includes five Currency for Return strategies being Active Forward Rate Bias (FRB), FRB Index, Emerging Market, Momentum and Value, and these strategies can be offered in either a segregated or pooled fund structure. The Company's clients are institutions, including pension funds, charities, foundations, endowments, and family offices, as well as other fund managers and corporate clients. It operates in the United Kingdom, North America and Continental Europe, including Switzerland. more »

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Carillion plc is an integrated support services company. The Company operates through four business segments: Support services, Public Private Partnership projects, Middle East construction services and Construction services (excluding the Middle East). The Support Services segment includes its facilities management, facilities services, energy services, rail services, road maintenance services, utilities services, remote site accommodation services and consultancy businesses in the United Kingdom, Canada and the Middle East. The Public Private Partnership projects segment invests in Public Private Partnership projects in the United Kingdom and Canada. The Middle East construction services segment includes its building and civil engineering activities in the Middle East and North Africa. The Construction services segment includes its the United Kingdom building, civil engineering and developments businesses, together with those of its construction activities in Canada. more »

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

41 Comment on this Article show/hide all

Effortless Cool 17th Nov '17 1 of 41


T Clarke (LON:CTO), please. Price has been weak in recent weeks, but there was a "meeting expectations" trading statement this morning. They look very cheap to me, especially as they are hauling themselves up the technological ladder towards (hopefully) high margins.

They also announced what looks like a decent non-exec appointment this morning.

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About Graham Neary

Graham Neary

Full-time investor and independent analyst. Prior to this, I spent seven years in the financial markets as an analyst and institutional fund manager. I'm CFA-qualified, also holding the Investment Management Certificate and the STA Diploma in Technical Analysis.Away from finance, my main interests are recreational poker and everything to do with China, especially Mandarin Chinese. more »


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