Derek Pain: It's goodbye to Animalcare - with a watching brief on Findel
Friday 22 August 2014
The No Pain, No Gain portfolio remains in the black, but the number of losers has increased in recent months. For a long time three of the 15 constituents were stuck in the red, but nowadays I have to contend with at least four culprits in deficit and another hovering uncomfortably on the fringe.
My recalcitrant shares, which were all in profit at one time, are power provider Alkane Energy; veterinary products group Animalcare; vending machine business SnackTime; and environmental specialist TEG.
Lloyds Banking is flitting below and above the portfolio's buying level. It would be wise, I believe, to unload one of my five and use the resultant cash for reinvestment.
I have explained the reasons the portfolio intends to stick with Alkane for the time being and TEG is, as I have indicated, in the last chance saloon. SnackTime should have been sold a long time ago but I failed to take action and with the shares around 13p it is now too late.
That leaves Lloyds and Animalcare. The bank was only acquired a year ago and the portfolio likes to take a longer view. In addition it seems the shares are suffering from short-term hiccups and could eventually go higher, despite Scotland's breakaway threat.
On the other hand, the veterinary business has endured a portfolio presence for nearly three years and although the company is making progress and pays dividends, it could be some years before planned changes significantly influence profits. So the shares are unlikely to progress for some time.
I have on a number of occasions said I intended to dump Animalcare and I am now executing my threat. The shares were acquired at 171p; the price is, as I write, 144p.
I have some regrets at giving up on the shares. The group is in a lucrative business and is busy recharging its portfolio. Operating profits for the year to the end of June are likely to come out at £2.6m with revenue up 6.3 per cent.
Still, the group seems unlikely to achieve the pre-tax profits that it hit in 2010. The last figure was £2.33m. The removal of Animalcare, together with the departure of Brightside, means the portfolio's strength is down to "unlucky" 13. As I am a superstitious old soul, I will endeavour to quickly recruit at least one newcomer.
The takeover of Brightside by private equity group AnaCap has been completed and the cash received. The portfolio acquired the shares in the summer of 2012 at 18.5p; the offer was 25p. Last year the insurance broker was nearly captured with, it is said, at least 27p initially on the table. But the bid was reduced to a rejected 20p/22p when Brightside encountered trading difficulties. There is also the chance I could sack one of the existing constituents. Findel, the home shopping group, is causing some concern. The shares, having topped 320p, are now 242.75p.
The portfolio is still making money but it is disconcerting when a share sacrifices so much ground.
Booker, the cash and carry chain, is another stock that has lost much of its momentum.
However, it is now making hesitant progress and I am in no hurry to oust Findel. It is not unusual for high-flying shares to suffer an unjustified retreat, often the result of profit taking by those who acquired the stock at much lower prices.
Still, I will have to keep a close eye on Findel, as there is a faint hint that it could be running out of steam.
- 1 Stuart Baggs dies: Apprentice star 'The Brand' found dead aged 27
- 2 Whoopi Goldberg tells Cara Delevingne to suck it up: 'She's not famous. I'M famous'
- 3 1000 people played Foo Fighters simultaneously to try and get them to play their city
- 4 Every club should be like Labour – you can’t join as a new member unless you’re already a member
- 5 Doctor Who: Christopher Eccleston says why he left the BBC series after just one series
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Labour leadership contender Jeremy Corbyn says 'we can learn a great deal from Karl Marx'
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Public anger after French sunbather beaten up by gang for wearing a bikini in Reims park
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
iJobs Money & Business
£13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...
£22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...
£35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...
£35 - £50k DOE: Guru Careers: A Tax Manager / Accountant (ACA / CA / CTA) is n...
Day In a Page
Set sail for this four-bedroom farmhouse in Cowes. With five acres of land and an indoor pool, this home oozes character. There is even potential to let a one-bedroom annexe.
With five bedrooms, this spacious home offers beautiful gardens and modern interiors - set within the popular market town of Bingley.
A few miles from the seaside at Perranporth, this four-bedroom farmhouse sits amongst nine acres of idyllic grounds - including a lake and two barns used as holiday lets.
In the pretty market town of Bungay, this grade II-listed Mill House is arranged over four floors, offering four bedrooms and three reception areas.
This first-floor flat comes with two bedrooms, an impressive open-plan reception room and two lovely roof terraces.
This five-bedroom home comes with a range of outbuildings including a large barn which could be converted into a self-contained granny-flat or rental.
Moored at Taggs Island and reached via a pretty garden, this two-bedroom houseboat has a vaulted reception room and skylit garden studio - currently a beauty salon.
On the edge of the city, this six-bedroom home comes with an outdoor swimming pool and a large garage block that has annexe potential.
A contemporary house spread over three storeys, this three-bedroom detached home has large sliding doors that open out to the River Quaggy.
Moored in Chelsea's Cheyne Walk, this houseboat offers two double bedrooms and a teak deck that's ideal for al-fresco dining.
This former village bakery, dating back to the 17th century, is now a three-bedroom detached home just a few miles from the East Sussex coast.
On the picturesque Isle of Man, this four-bedroom character home has a ground-floor shop that's currently run as a newsagents and a flat that would make an ideal holiday let.
In a new collection of flats, this first-floor two-bedroom apartment offers ample entertaining space and a prime view of Furze Green from a private balcony.
This three-bedroom stone-built cottage currently trades as the village store with a restaurant in the annexe and family accommodation on the upper floors.
Previously two semi-detached properties, this five-bedroom home is spread over three floors with a large breakfast kitchen, orangery, office and gym on the second floor.
This five-bedroom home enjoys countryside views over the Blyth estuary to Southwold, offering flexible living space with a ground-floor annexe - ideal for use as a holiday let.
Close to the market town of Eye, this four-bedroom detached home offers a double-height living room which takes the place of the original, 19th-century, chapel nave.
Dating back to the 19th century, this four-bedroom home needs modernising. Spanning three storeys, the red-brick house has a fireplace, a small terrace and a cellar.
Just outside of Cambridge, this single-storey home offers three double bedrooms, a living room with vaulted timber ceiling and ladder steps that lead to a mezzanine study area.
This six-bedroom Georgian home is on three floors with open fireplaces, a two oven Aga, an annexe, and cottage gardens with outbuildings and a car barn.
A former coach house, Glebe Farm Stable is now a three-bedroom cottage with a double car barn, an attached office, kennels and an outbuilding that's currently used as a gym.
Located beside an impressive Victorian viaduct, this four-bedroom home has an open-plan living area that is glazed on two sides, with skylights and high ceilings.
A former furniture workshop, this three-bedroom home has high ceilings and painted brick walls, in a village setting only fifteen miles from the coast.
This five-bedroom stone townhouse features a pine staircase and an Inglenuk fireplace, double doors from the lounge give access to an enclosed courtyard.
This five-bedroom, detached home blends traditional and modern design; the sleek kitchen features a gas hob and oven set within an exposed chimney breast.
Capitalise on the fabulous views of Trevone Bay by taking two homes and creating one spacious boutique B&B. Just a cliff-top walk from Padstow.
Surrounded by woodland, this five-bedroom manor house has plenty of outdoor storage space in the form of three converted loose boxes, two smaller outhouses and a woodstore.
This six-bedroom home is set amongst three acres of grounds. Currently a large family home, Clift Hill has potential to make a B&B or countryside retreat, subject to change of use permissions.
This Grade II-listed three-bedroom home is situated on a private road, just a short walk from the sandy beaches of Frinton-on-Sea.
Less than five miles from Malmesbury, this four-bedroom cottage comes with equestrian facilities and gardens that extend to approximately three acres.
Spanning three storeys, this late-Victorian five-bedroom farmhouse is a spacious family home with a modern interior and B&B potential.
With an original church arch, this triplex one-bedroom church conversion has a light, spacious, feel and comes with a secure off-street parking space.
This recently-refurbished three-bedroom home has bi-folding doors that lead out to a decked seating area - ideal for alfresco dining this summer.
Well-located for coastal walks and popular restaurants, this detached four-bedroom home offers views over farmland, to the Solent, the Purbecks and Bournemouth.
If you love high ceilings, school conversions like this one are bang on the money. This two-bedroom flat is minutes from Burgess Park and the foodie haven at Borough Market.
Set within a church conversion in Bermondsey, this two-bedroom maisonette combines existing features, such as original arches and brickwork, with a contemporary finish.
This four-bedroom Edwardian home offers a combination of original features and contemporary design after a renovation by the current owners.
This four-bedroom home offers a vaulted ceiling in a breakfast room that's ideal for summer entertaining with doors that open to the patio and garden.
On the market for the first time in more than 50 years, this six-bedroom home is a project with vast potential - spread over three floors of living space.
Surrounded by rolling countryside, this four-bedroom barn conversion comes with a self-contained, one-bedroom annexe that could serve as an office or a holiday let.
Located near Harrogate town centre, this five-bedroom Victorian terrace is arranged over three storeys while a current study serves as an optional sixth bedroom.
A ground-floor flat in a country house, located a mile from Sway; this two-bedroom home would make an ideal weekend retreat on the edge of the New Forest.
On a popular residential lane in Caterham on the Hill, this four-bedroom family home offers a secluded garden and a convenient location for local schools and public transport.
Just a short walk from Westerham green, this three-bedroom cottage has a light kitchen with exposed brickwork and double doors that lead to a south-facing garden.
In a prime spot opposite the River Thames, this one-bedroom flat has an 18sq ft reception room with glass doors that open out to a private terrace.
Set in the hills above Llanwrda Village, west Wales, this 18th-century three-bedroom farmhouse has holiday-let potential from a separate barn conversion and annexe.
This charming end-of-terrace townhouse is arranged over three floors, with two double bedrooms and a private courtyard garden located at the rear of the property.
Located in the University area, this semi-detached five-bedroom home is arranged over three floors - there's even a rear garden and off-road parking too.
Only a few minutes' drive from the charming town of Marlow, this two-bedroom home sits on the private riverside estate of Harleyford.
This detached four-bedroom home in Middleyard is arranged over two floors, with features that include a wood-burning stove and bespoke oak staircase.