Good morning! This is my last small-cap report before I jet off for summer holidays at the end of this week.

Some RNS announcements to see me off:

At Versarien (LON:VRS), "revenues [from graphene] of any material amount have yet to be achieved". It has received its first graphene orders post-period end.


Readers have been having an excellent discussion in the comments on Alliance Pharma (LON:APH).

For better or for worse, I stay away from all pharmaceutical stocks on the grounds that my time is better spent focusing on industries where I have a little bit of experience and/or expertise. Sorry about that! I strongly recommend the comments section for anyone who is interested in this share.

Not taking profits

I've had an interesting chat this morning with a friend on the subject of taking profits. We are both long-term shareholders in Burberry (LON:BRBY), and it's a significant percentage of both of our portfolios (currently 13% of mine).

Pricing of Burberry (LON:BRBY) leaves us with a problem of sorts - a pleasant problem. Do we take profits at c. 27x earnings (pre-upgrades) or do we ride it out?

Regular readers will know that as a general principle, I don't sell shares. There are many reasons for this:

  • frictional costs - commissions, the spread.
  • taxes - to avoid capital gains tax liabilities, I need to hold on to shares (your tax situation may be different).
  • the reinvestment problem - it creates more work for me, to find something else to invest in. This might sound lazy, but I think that minimising work is very smart!
  • wasted research - related to the above, it is a waste of the work done on my existing portfolio and the comfort that I've built up with my existing holdings, if I get rid of them too…

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