Just a quick note to say that the latest Compound Income Scores have been updated again today. Meanwhile as promised here are brief details about the trades that were carried out in the CIS Portfolio which is run using the scores. This month there were three potential sales, although in the end I gave VP Group (VP) the benefit of the doubt as they had issued an in line trading update and final results are due in June.
Consequently Central Asia Metals (CAML) and Portmeirion (PMP) whose scores had deteriorated both left the portfolio having delivered decent returns over about a year in the case of CAML & just three months in the case of PMP. CAML was replaced directly with a similar stock with a higher score - Rio Tinto (RIO) albeit that it is much bigger and more diversified in terms of its operations. While PMP was replaced with Mondi (MNDI) the much larger , international packaging group where the portfolio then picked up the final & special dividends which gave an immediate yield of 6.27%, although obviously the price will have adjusted down accordingly on the XD day.
Finally in a bit of portfolio tidying up I also topped up a couple of holdings which had lagged with some of the proceeds of the above sales and from some cash that had accrued from dividends. Thus holdings in Headlam (HEAD) & Ferrexpo (FXPO) were topped up. I know this goes against all the suggestions of running your winners and cutting your losers but in this case FXPO continues to score extremely well and HEAD's score is still quite good at 88 and the CIS portfolio will also pick up the final dividend of 17.25p worth 3.88% which goes xd towards the end of May.
That's all for now but don't forget if you would like to learn more about the Scores and how to gain access to them or learn more about the CIS Portfolio then do explore the navigation links at the top of the site if you are on a PC or in the three lines menu at the top if you are on a mobile or tablet or click the highlighted links in the first paragraph. Good luck with your investing and have a great weekend whatever you are up to.
A surprisingly busy even manic Monday today, or maybe even Blue Monday as I see #bluemonday is trending on twitter today.
As far as the Compound Income Scores portfolio (CISP) goes we have had positive US tax related update from Bodycote (BOY) where they say it will add 5p or around 10% to this years earnings thanks to a one-off revaluation of US net deferred tax liabilities. In addition they said that Q4 trading had been strong & therefore the Board now expects full year 2017 headline operating profit to be towards the upper end of market expectations (company compiled analysts' estimates range: £117 million - £126 million). So continued good momentum in the business and the shares here, although this has left it looking poor on the value front as it approaches the upper end of my normal comfort range at around 20x with a circa 2% yield.
Also on the US tax cut front Ferguson (FERG) outlined the effects of this and the reduced tax charge they will have going forward. They didn't give explicit guidance as to the effects but I would expect we will see upgrades here too. This should help to continue their strong momentum where the price has broken out to new highs. While they are good quality and offer slightly better value than Bodycote.
Away from US related tax changes we had an operational update from Central Asia Metals (CAML) which saw production towards the top end of their expectations. For the coming year they affirmed expectations of similar production levels at this stage and confirmed that as of 31 December 2017, CAML had cash in the bank of $46 million.
Finally XL Media (XLM) announced the acquisition of a number of leading Finnish gambling related informational websites from Good Game Ltd for a total cash consideration of up to €15 million. The Acquisition is expected to complete during the first quarter of 2018 and to be immediately earnings enhancing in the current financial year following completion. Seems fine and a continuation of their acquisition strategy, although on this occasion it is not diversifying but bulking up their original core operations.
That's it for the CISP today so I'll leave you with some music appropriate to today's title to choose from and cheer you up if you need it or not as the case may be. Happy Investing & listening.