Derek Pain: Recent recruits put my portfolio in the money

No Pain, No Gain

The stock market has been experiencing one of those uncertain runs that occur every so often. Some alleged experts suggest investors are at last appreciating the increasing difficulties facing the world's economy, while others maintain that shares are cheap and offer inviting returns. I am on the side of the bulls; there is still much to go for, and there is absolutely no reason why anyone should be panicked into selling sound stocks.

Since my last quarterly review, the no pain, no gain portfolio has edged ahead and is now in the money to the tune of some £107,000. I owe a considerable debt of gratitude to my last three recruits: Avation, Capital Pub Co and Rivington Street Holdings.

I was a little slow alighting on Avation and Capital, and I cannot help reminding myself that if I had been a shade more adventurous, this chalk-and-cheese twosome would have made an even greater contribution to the portfolio's wealth. After all, Avation was 58p when I first commented on the aircraft leasing group, and Capital was around 105p. I eventually climbed aboard at 83.5p and 120p in January.

My timing was rather better with Plus-traded Rivington. It arrived a few months earlier at 27.5p; as I write the shares are 49.5p, pricing the rapidly expanding conglomerate at approaching £20m. I expect further progress. Indeed it seems one investor has acquired shares at 57p.

Major shareholder is chief executive Tom Winnifrith, with around 30 per cent of the capital. The City's takeover panel has decreed that without triggering an obligation to mount a full bid he may continue to increase his interest through share buybacks and exercising options, but not via stock market purchases.

In a trading update, covering the first eight months of its current year, Rivington, still ignored by institutions, appears supremely confident. Underlying pre-tax profits – up 177 per cent at nearly £1.1m at the six months stage – are still in line with expectations. In addition to profitable operations, such as the group's corporate side, which continue to do well, losses at a subsidiary have probably been eliminated, and it could end the year in a break-even position or even in profit. In the first half this particular off-shoot lost some £200,000. And losses at the recently launched cut-price stock-broking business are decreasing and profitability is in sight.

Subscriptions for the group's latest EIS fund closed this week, and there are plans for another unit trust, this time concentrating on India. In recent times Rivington has been extremely acquisitive. But in the past few months deals have been conspicuous by their absence. Still, it remains on the look-out, but insists it will not overpay.

Elsewhere in the portfolio, Booker, the cash and carry chain, and Hargreaves Services, the coal-mining to transport group, have performed encouragingly. Even Mears, the support services group, has shown signs of overcoming the weakness which followed year's results. After falling below 240p, the shares laboriously climbed to 280p – putting the portfolio in profit – but are now round 267p.

A former constituent, Printing.com, has produced year's figures. The group, which at the time of its exclusion ranked as the longest-serving portfolio member, suffered a 23.1 per cent pre-tax profits fall to £1.31m. Still, the dividend was held, putting the shares, at 36p, on a remarkable 8.75 per cent yield. But with profits in decline I wonder just how much longer it can hold the payment. The portfolio does not benefit at all from dividend payments and my decision to sell, taken reluctantly in view of what was an association going back to 2004, has been justified as the shares remain near my selling price. Printing.com and Private & Commercial, the hire purchase group, were the casualties when Avation and Capital were recruited.

I remain on the hunt for additions. I am still debating the merits of Wm Morrison, the supermarket group. Its apparent pursuit of Iceland, the frozen food chain, could prompt some uncertainty. Besides the possibility of more shares being issued, investors may recall that its last major takeover, the Safeway supermarket group, in 2004 took rather a long time to bed down. Morrison has also been gobbling up its own shares – an exercise I am not keen on.

Independent Partners; request a free guide on NISAs from Hargreaves Lansdown

Voices
A Russian hunter at the Medved bear-hunting lodge in Siberia
Save the tigerWildlife charities turn to those who kill animals to help save them
News
Davis says: 'My career has been about filling a niche - there were fewer short actors and fewer roles – but now I'm being offered all kinds of things'
PeopleWarwick Davis on Ricky Gervais, Harry Potter and his perfect role
News
i100
Sport
Frank Lampard will pass Billy Wright and equal Bobby Charton’s caps tally of 106 caps against
sportFormer Chelsea midfielder in Etihad stopgap before New York contract
PROMOTED VIDEO
Arts and Entertainment
The first film introduced Daniel Radcliffe to our screens, pictured here as he prepares to board the train to Hogwarts for the first time.
booksHow reading Harry Potter helps children grow up to be gay-friendly
Arts and Entertainment
A scene from Aladdin is performed at the Tony Awards in New York in June
theatreBrit producer Lythgoe makes kids' musical comedy a Los Angeles hit
Sport
Usain Bolt of Jamaica smiles and shakes hands with a competitor after Jamaica won their first heat in the men's 4x100m relay
sport
News
Chancellor George Osborne, along with the Prime Minister, have been 'complacently claiming the economy is now fixed', according to shadow Chancellor Ed Balls
i100... which is awkward, because he is their boss, after all
Life and Style
A small bag of the drug Ecstasy
Health
Life and Style
Floral-print swim shorts, £26, by Topman, topman.com; sunglasses, £215, by Paul Smith, mpaulsmith.co.uk
FashionBag yourself the perfect pair
News
news
News
Netherlands' goalkeeper Tim Krul fails to make a save from Costa Rica's midfielder Celso Borges during a penalty shoot-out in the quarter-final between Netherlands and Costa Rica during the 2014 FIFA World Cup
newsGoalkeepers suffer from 'gambler’s fallacy' during shoot-outs
News
people
Arts and Entertainment
Standing the test of time: Michael J Fox and Christopher Lloyd in 'Back to the Future'
filmReview: A week late, Secret Cinema arrives as interactive screening goes Back to the Future
Extras
indybest
News
i100
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

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

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Financial Analyst - Forecasting - Yorkshire

    £300 - £350 per day: Orgtel: Financial Analyst, Forecasting, Halifax, Banking,...

    Business Architect - Bristol - £500 per day

    £500 per day: Orgtel: Business Architect - Banking - Bristol - £500 per day A...

    Regulatory Reporting-MI-Bank-Cardiff-£300/day

    £200 - £500 per day + competitive: Orgtel: I am currently working on a large p...

    Trainee Recruitment Consultant - Birmingham - Real Staffing

    £18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...

    Day In a Page

    Save the Tiger: Meet the hunters tasked with protecting Russia's rare Amur tiger

    Hunters protect Russia's rare Amur tiger

    In an unusual move, wildlife charities have enlisted those who kill animals to help save them. Oliver Poole travels to Siberia to investigate
    Transfers: How has your club fared in summer sales?

    How has your club fared in summer sales?

    Who have bagged the bargain buys and who have landed the giant turkeys
    Warwick Davis: The British actor on Ricky Gervais, how the Harry Potter set became his office, and why he'd like to play a spy

    'I'm a realist; I know how hard this business is'

    Warwick Davis on Ricky Gervais, Harry Potter and his perfect role
    The best swim shorts for men: Bag yourself the perfect pair and make a splash this summer

    The best swim shorts for men

    Bag yourself the perfect pair and make a splash this summer
    Has Ukip’s Glastonbury branch really been possessed by the devil?

    Has Ukip’s Glastonbury branch really been possessed by the devil?

    Meet the couple blamed for bringing Lucifer into local politics
    Dress the Gaza situation up all you like, but the truth hurts

    Robert Fisk on Gaza conflict

    Dress the situation up all you like, but the truth hurts
    Save the tiger: Tiger, tiger burning less brightly as numbers plummet

    Tiger, tiger burning less brightly

    When William Blake wrote his famous poem there were probably more than 100,000 tigers in the wild. These days they probably number around 3,200
    5 News's Andy Bell retraces his grandfather's steps on the First World War battlefields

    In grandfather's footsteps

    5 News's political editor Andy Bell only knows his grandfather from the compelling diary he kept during WWI. But when he returned to the killing fields where Edwin Vaughan suffered so much, his ancestor came to life
    Lifestyle guru Martha Stewart reveals she has flying robot ... to take photos of her farm

    Martha Stewart has flying robot

    The lifestyle guru used the drone to get a bird's eye view her 153-acre farm in Bedford, New York
    Former Labour minister Meg Hillier has demanded 'pootling lanes' for women cyclists

    Do women cyclists need 'pootling lanes'?

    Simon Usborne (who's more of a hurtler) explains why winning the space race is key to happy riding
    A tale of two presidents: George W Bush downs his paintbrush to pen father’s life story

    A tale of two presidents

    George W Bush downs his paintbrush to pen father’s life story
    Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover

    The dining car makes a comeback

    Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover
    Gallery rage: How are institutions tackling the discomfort of overcrowding this summer?

    Gallery rage

    How are institutions tackling the discomfort of overcrowding this summer?
    Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players

    Eye on the prize

    Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players
    Women's rugby: Tamara Taylor adds fuel to the ire in quest to land World Cup

    Women's rugby

    Tamara Taylor adds fuel to the ire in quest to land World Cup