Good morning!

Stocks of interest today include:

Record (LON:REC)

  • Share price: 43.3p (+4%)
  • No. of shares: 199 million
  • Market cap: £86 million

First Quarter Trading Update

(Please note that I currently own REC shares.)

This is a specialist currency manager whose shares I've held for about six months now.

I like many things about this company and its financial characteristics, and have likely mentioned them in previous editions of this report.

The only thing it's lacking is growth. This is why it remains one of my smaller positions. If it showed signs of growth, and the valuation remained reasonable, I'd be interested to promote it.

This update shows a few signs of life. Key points:

  • AuME (assets under management equivalent) down from $62.2 billion to $61.9 billion. Not good, but....
  • Client net inflows of $0.6 billion, with an inflow to the higher-margin Currency for Return product.
  • Number of clients increases by four to 64

My view - I still don't have enough conviction to take a large position in this stock, and I may end up selling out of it to go into something where I have more conviction.

The benefit to holding it is that it is very good at generating cash, and most earnings are being paid out as dividends.

For example, nearly all of 2018 EPS is being paid out, including a special dividend. I think the trailing yield based on today's share price is 6.5%. Record is achieving that even while maintaining a very strong balance sheet.

So for someone who likes a bumper dividend yield and isn't too concerned about growth, this may be of interest.

600 (LON:SIXH)

  • Share price: 17.75p (+8%)
  • No. of shares: 113 million
  • Market cap: £20 million

Final Results

In truth, these final results are of less interest to me than yesterday's announcement: Buyout of Pension Scheme Agreement.

After the plunge at MPAC (LON:MPAC) this week, lots…

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