I have now closed my position in CTG. The share price continued to fall and crossed the 25% down. At that point I did a review and concluded that I was not prepared to buy more so sold the position. This proved problematic as when I put the 4,000 shares up for sale the SP fell 2%. But as CTG also put out another useless RNS which had no useful figures in I was determined to sell and move on.
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For the last year I have been increasingly underwhelmed by the RNS being released by CTG. They have been lacking in information and largely talking about one off project wins that are unlikely to repeat.
As such the intention had been to dispose of my small holding in CTG at the start of the tax year as the loss would offset some of the gains I was expecting. However having read the full year results which came out a few days ago I have now moved the position to a low hold. By this I mean I have set the sale target just above my initial buy price but an not currently planning to sell unless this is reached. Having read the results I am convinced that there are a number of genuine opportunities being followed up by the divisions of CTG in a number of areas. Moderate successful implementation of these would enhance the share price. Possibly significantly. Against this however is the ongoing poor performance in the stocktaking business. Poor performance that management is aware of and seems to intend to seek to correct. However no correction has as yet been forthcoming. Overall the results have given me more confidence in both the management and the opportunity. This is still to be delivered so I will sell if I can wash my face, but am now content to hold pending further information. I have been asked to put a few words on the current thinking with regard to the holdings at present. (Please remember any "valuation" is only an opinion and should be considered a range around figure. So here goes;
Acal - This is rather disappointing at present. Having set out a strategy implementation does seem to be hard work. I had fair value on this share around 300p and I would consider selling from 275p up. Air Partners - Current fair value on this is 450p. Business is developing and I am happy to hold. ARBB - Everyone I ask who looks at ARBB seems to agree it is significantly undervalued, but there is no catalyst event and management seem unwilling to make much of an effort to address this. I am looking at possible actions that I could take. But as this does seem fairly safe it is not currently a top priority. Though I do need to be mindful that increasing the time to realise the gain does decrease the return over a set time period. AAPL - Happy holding. But will not be increasing. Cannot see that I have better information than the market in general. Happy seller at $150. AVAP - A simple company with potential. Held back by management mishaps. Thankfully the mistakes are not fatal and the company does seem to learn from them. Holding having recently added to bring the holding over 1%. Not looking to increase until a steady level of good news showing development. BLT - This has fallen over 25% and so has been reviewed. I would look to buy more. However BLT is currently in an account with no additional cash. Happy holding CTG - The shares are volatile within a band. But overall going nowhere. Took a small position but have not warmed to the company. Will be looking to sell when I can wipe my face. Would sell if the account it is in needed some cash. Unfortunately its not the same account as BLT. DJAN - Happy holding. Very long term buy and hold. DIsney - Am considering buying more. I believe the cord cutting concerns are overplayed and whilst this may have short term issues people will pay for ESPN on a slimmer bundle. EMR - This has risen over 25% and so has been reviewed. Am happy to increase the holding, particularly after the last set of results, subject to cash becoming available. However currently it is in an account with no money. ETO - This is a mediocre company with management that aspire to mediocre. Realistically there is I believe significant value within parts of the portfolio - Peppa Pig, that validates the investment. But the management seem to learn nothing and I do wonder whether it will take either a change in management or a third party to bring out the value. I will not be increasing the position absent this. Other holdings will follow in another blog |
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