Portfoilo Update
Reporting season is over and there has been a fair bit of trading around the edges so time for a update, but first a look at the larger picture.
The portfolio started on the 20th of July 2011 with a $30,000 line of credit and no cash, $40.00 a week was initially deposited building up to the current $75.00 a week that is currently being transferred. It still surprises that in such a short time this now adds up to $7425.00. The debt on the line of credit is now $27,743.93 and at the close of trading today the portfolio has a market value of $52,047.99 so if liquidated right now with no brokerage there would be $24.304.06 of equity.
Yes a rising tide does lift all boats and a nice improvement on the -$6000.00 equity of not too long ago. Now for a look at the investments.
EZL - Euroz Securities.
Bought, 1412x EZL @ $1.055 = $1509.61 on 17/07/12, now trading at $1.255 ($1722.06) a gain of 17.39% This is the smallest position at 3.4% of the portfolio. Revenue was up 13.77% while NPAT was up 22.9% the management and majority shareholders running this business know a whole lot more about the resource and energy sectors than I ever will and they have a good history of share holder friendly capital allocation.
HHL - Hunter Hall International
Bought; 1182 xHHL @ $2.85 = $3388.65 on 23/11/12, 717 xHHL @ $2.83 = $2049.06 on 11/03/13, and 638 xHHL @ $2.35 = $1519.25 on 30/05/13 for a grand total of 2357 shares for $6956.96, now with a market value of $7508.25 a loss of -17.95%
This position that is currently 10.97% of the portfolio has the distinction of being the largest percentage looser and also having the most capital allocated to it. FUM, net profit and dividends all fell. There is hope with no debt and a investment strategy and portfolio that I'm sure will outperform in the long term as they have in the past.
IMF - Bantham IMF limited
Bought; Bought 819 IMF @ $1.83 = 1518.72 on 3/10/2013, Bought 877 @ $1.71 = $1519.62 16/12/13 and Bought 870 @ $1.72 = $1516.35 on 05/02/2014 for a grand total of 2566 shares for $4554.69 now with a market value of $4464.84 a loss of 1.97%
This recent investment is currently 8.58% of the portfolio. The most recent results looked good with revenue up 44% and profit up even more for what it's worth. The earnings will always be lumpy but if they grow and diversify internationally profits should even out in the medium to long term. At around current prices the DRP seems to me to be an attractive option.
IPP - Iproperty Group
Bought; 1660 x IPP @ $0.915 = $1538.85 on 14/11/12 and 1910 x IPP @ $0.785 = $1519.30 on 22/04/13 for a total of 3570 shares for $3058.15 now with a market value of $10995.60 a gain of 259.55%
At 21.13% of the portfolio this is by far the largest position and was by far the most difficult buy decision. Every other investment earns a profit and pays a dividend IPP has only had one cash flow positive quarter. The reason this is in the portfolio is because of the revenue growth and the chance they will build a competitive advantage like REA, the market seems to be thinking this is a possibility.
MTU - M2 Group
Bought, 649 x MTU @ $2.62 = $1711.99 08/08/11, now with a market value of $3918.75 a gain of 136.06%
This investment at 7.53% of the portfolio was a bit over twice as large about six months ago but profits were taken at around current prices, a decision I'm starting to regret. Back then the doubt was whether they could transition from growing by acquisitions to a more organic growth model. NPAT up 26% while earnings per share and dividends were also up enough to prove me wrong.
NVT - Navitas Limited
Bought; 1023 x NVT @ $2.93 = $3017.34 on 02/02/12 and Bought 266 @ $5.63 = $1517.53 on 30/10/13, now with a market value of $9744.84 a gain of 114.89%
The second largest position at 18.72% of the portfolio this is a excellent business. The recent headline results (revenue up 19%, NPAT up 3%) don't tell the full story. NVT is a cash generating machine with a excellent market leading business in a growing market. Makes me fell a little slow that I waited over a year and a half before increasing the investment in this one.
SRX - Sirtex Medical Limited
Bought, 150 x SRX @ $9.74 = $1480.95 on 24/04/13, now with a market value of $2422.50 a gain of 63.58%
This small investment is now 4.65% of the portfolio, a long history of growth is about to reach a crossroads with results of major clinical trials due for release early next year. The expected results should be either a large multi-bagger or a small loss in the future.
TGA - Thorn Group
Bought, 972 x TGA @ $1.505 =$1482.81 on 05/04/12, 1074 x TGA @$1.395 =$1518.18 on 26/04/12, 867 x TGA @ $1.745 = $1532.87 on 20/11/12 and Bought 762 @ $1.97 = $1521.09 on 07/02/14 for a grand total of 3675 shares for $6054.95, now with a market value of 7570.50 a gain of 25.03%
At 14.55% of the portfolio I consider this another core holding and will probably consider adding to the position on any further dips in price. The most recent results were solid but the thing to keep an eye on are the investments being made in future growth areas meanwhile Radio Rentals just keeps on spinning off cash.
UOS - United Overseas Australia
Bought; Bought 2634 @ $0.535 = $1429.14 on 13/2/14 and 3460 x UOS @ $0.52 = $1819.15 on 26/2/14, currently trading at 3387.17 a gain of 4.12%
This most recent investment is 6.5% of the portfolio, at a nice discount to NTA and shareholder friendly management I will participate in the DRP.
WDIV- SPDR S&P Global Dividend Fund
Bought, Bought 128 x WDIV @ $15.83 = $2046.19 on 07/01/14, now valued at $2068.48 a gain of 1.09%
This second smallest position (3.97% of the portfolio) is still under review. This ETF in my opinion holds a basket of undervalued securities, the question is how much growth can they deliver?