Minutes of Roborough Investment Club Meeting #66
18th October 2004

Apologies:
               Phil Ainsley

Guest:
                   Sreve Baggley

Agenda:

1. Review minutes of previous meeting

2. Review Actions

3. Treasurer's Report

Shares purchase/sales this month

Half of Kelda (on 28th September) for £1359.42 (£327.66* profit)
* Estimated on all information currently available

Purchase

Scottish Power (on 5th Ocotber) for £1017.00
 

Dividends Received

There was a heated debate on the sale of Kelda shares, and it was impossible to record all comments made.  The major disagreement was that the Cowboys did not want the shares to be sold, and were prepared to buy the shares from the Bulls. This was recorded in the previous minutes. This is the summary of the discussion recorded.

Cowboys points:
* At last months meeting (September) they (the Cowboys) offered to buy the shares from the Bulls for 400p
* Transferring the shares would have saved 2 loads of commission plus stamp duty ~ £100
* Kelda has recovered since the sale
* Why sell shares for money, when the club is not short of cash. Are we a cash club or share club?
* There was concern that the shares we sold by only 2 members (Les and Geoff) of the Bulls.
* The Cowboys were prepared to offer a fair price for the shares, rather than see them sold.

Bulls points:
* The shares were sold at a weekly meeting where more than 2 members took part. (Exact number not specified).
* Too high a proportion of the clubs assets are held by a single share.
* Only half the shares were sold in attempt to protect the profits by taking half the gain.
* If they continue growing, the decision to take another half of the profits will be made again.
* The shares are fully valued and cannot keep rising. They peaked at 560 in 1998, and are now 540. They bottomed at around 260 in 2000, so they have the potential to fall a long way.
* The offer of 400p per share could not have been serious because the selling price was 528p. It was understood to be a flippant remark and not serious. However, with hindsight it would have been more prudent to offer the Cowboys the chance of buying the shares.

Les also responded to the Cowboys question on whether the club is a share or cash club, by stating that it is impossible to manage a large number of shares. And how often did the Cowboys meet anyway?
 

Asset Summary

COWBOYS							BULLS
Company	Quantity	Total	Price	Net value	Profit/loss		Company	Quantity	Total	Price	Net value	Profit/loss
Assocd Brit Ports	241	998.99	442.75	1054.53	55.54		Bovis Homes	223.00	998.61	549.5	1212.89	214.28
Isoft	294	997.43	392.75	1142.19	144.76		Brown (N) Group	800.00	992.5	108.5	855.5	-137
Hardys & Hansons	143	606.79	502.00	705.36	98.57		Creative Education	9825.00	999.91	4.5	429.63	-570.28
Kelda	245	972.24	538.00	1305.60	333.35		Eckoch Technology	2000.00	782.56	7.75	142.5	-640.06
UK Coal	641	998.78	164.00	1038.74	39.96		London Stock Exch	265.00	997.82	348.5	911.03	-86.79
Scot Power	234	1017	427.00	986.68	-30.32		Pennon Group	150.00	1017.25	864	1283.5	266.25
							Personal	525.00	1002.49	185	958.75	-43.74
							Rank	385.00	999.97	283.5	1078.98	79.01
							Royal Doulton	6361.00	771.97	6.75	416.87	-355.1
Total Share		5591.232475		6233.10	641.86		Total Share		8563.08		7289.65	-1273.43
Scot Power				-1017.00
Kelda				1359.42
Interest				1.18			Interest				1.175
Receipt				165.00			Receipt				165
Cash				2713.65			Cash				1214.325
Total Cash				3222.24			Total Cash				1380.5
Total Assets				9455.34	2.87%		Total Assets				8670.15	1.19%

There is a descprancy between unit prices last month and this month. Last month the unit price rose from 100p to 103p. This month it rose from 102p to 103p. Action Geoff to investigate and clarify.

4. Review of current holdings

Scottish Power. Bought this month, Share has been in decline since 1999, bottomed in 2002, and is now recovering. We have been looking at energy shares because of current market conditions. Set on a 14.6% stop loss. Since buying it has gained a little. There is money to be made in this sector.

Associated British Ports  - on a tight stop loss which has been breached. Will sell if it stays below stop loss for 3 days. If we sell at the stop loss we make an 8.5% profit

Isoft - long term hold on a wide stop loss (23%). Plan to hold

Hardys and Hansons - growing steadily since 2000. On a 7.2% stop loss (currently 496p).

Kelda - Enough said

UK Coal - Recovering since 2002. On a 14% stop loss (currently 148). Continuing upwards
 

Bulls:

Bovis Homes.  Reached it target of 600p. Split group decision to hold because there is still a potential for further growth. No stop loss recorded.

Brown Group - Not a good month, but nothing has changed. So will hold

Eckoch Technology - Still growing but not in profit yet. The latest contract is with Vue cinemas. Will hold.

London Stock Exchange - Purchased for the divident it pays (received). Increasing turn over and profits. No reasons to sell.

Pennon Group - High yielding utility comany. Bought as a long term hold. Les recommends setting a 7% stop loss because during the last major dip it fell from £11 to £4 per share.
 
Personal - Bought on technical analysis basis - good yield, PEG, P/E. Will hold.

Rank - Purchased ahead of the de-regulation of the gamling laws. Will hold

Royal Daulton - Still awaiting recovery.

Les stressed the importance of having stop losses, even the trusted 10%.

5. AOB

Nothing was raised, except Steve was invited to join  the club for a mere one off payment of £50, plus £30 per month.
 

6. Agenda for next meeting

Geoff actioned to determine why the unit price varied between Sepember and October.

Date of next meeting