Derek Pain: It's goodbye to Animalcare - with a watching brief on Findel

 

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.

Independent Partners; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at VouchedFor.co.uk

Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Recruitment Genius: Customer Service Administrator

    £13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...

    Recruitment Genius: Dialler Administrator

    £22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...

    Ashdown Group: Contracts Manager - City of London

    £35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...

    Guru Careers: Tax Manager / Accountant

    £35 - £50k DOE: Guru Careers: A Tax Manager / Accountant (ACA / CA / CTA) is n...

    Day In a Page

    Blairites be warned, this could be the moment Labour turns into Syriza

    Andrew Grice: Inside Westminster

    Blairites be warned, this could be the moment Labour turns into Syriza
    HMS Victory: The mystery of Britain's worst naval disaster is finally solved - 271 years later

    The mystery of Britain's worst naval disaster is finally solved - 271 years later

    Exclusive: David Keys reveals the research that finally explains why HMS Victory went down with the loss of 1,100 lives
    Survivors of the Nagasaki atomic bomb attack: Japan must not abandon its post-war pacifism

    'I saw people so injured you couldn't tell if they were dead or alive'

    Nagasaki survivors on why Japan must not abandon its post-war pacifism
    Jon Stewart: The voice of Democrats who felt Obama had failed to deliver on his 'Yes We Can' slogan, and the voter he tried hardest to keep onside

    The voter Obama tried hardest to keep onside

    Outgoing The Daily Show host, Jon Stewart, became the voice of Democrats who felt the President had failed to deliver on his ‘Yes We Can’ slogan. Tim Walker charts the ups and downs of their 10-year relationship on screen
    RuPaul interview: The drag star on being inspired by Bowie, never fitting in, and saying the first thing that comes into your head

    RuPaul interview

    The drag star on being inspired by Bowie, never fitting in, and saying the first thing that comes into your head
    Secrets of comedy couples: What's it like when both you and your partner are stand-ups?

    Secrets of comedy couples

    What's it like when both you and your partner are stand-ups?
    Satya Nadella: As Windows 10 is launched can he return Microsoft to its former glory?

    Satya Nadella: The man to clean up for Windows?

    While Microsoft's founders spend their billions, the once-invincible tech company's new boss is trying to save it
    The best swimwear for men: From trunks to shorts, make a splash this summer

    The best swimwear for men

    From trunks to shorts, make a splash this summer
    Mark Hix recipes: Our chef tries his hand at a spot of summer foraging

    Mark Hix goes summer foraging

     A dinner party doesn't have to mean a trip to the supermarket
    Ashes 2015: With an audacious flourish, home hero Ian Bell ends all debate

    With an audacious flourish, the home hero ends all debate

    Ian Bell advances to Trent Bridge next week almost as undroppable as Alastair Cook and Joe Root, a cornerstone of England's new thinking, says Kevin Garside
    Aaron Ramsey interview: Wales midfielder determined to be centre of attention for Arsenal this season

    Aaron Ramsey interview

    Wales midfielder determined to be centre of attention for Arsenal this season
    Community Shield: Arsene Wenger needs to strike first blow in rivalry with Jose Mourinho

    Community Shield gives Wenger chance to strike first blow in rivalry with Mourinho

    As long as the Arsenal manager's run of games without a win over his Chelsea counterpart continues it will continue to dominate the narrative around the two men
    The unlikely rise of AFC Bournemouth - and what it says about English life

    Unlikely rise of AFC Bournemouth

    Bournemouth’s elevation to football’s top tier is one of the most improbable of recent times. But it’s illustrative of deeper and wider changes in English life
    A Very British Coup, part two: New novel in pipeline as Jeremy Corbyn's rise inspires sequel

    A Very British Coup, part two

    New novel in pipeline as Jeremy Corbyn's rise inspires sequel
    Philae lander data show comets could have brought 'building blocks of life' to Earth

    Philae lander data show comets could have brought 'building blocks of life' to Earth

    Icy dust layer holds organic compounds similar to those found in living organisms