No Pain, No Gain: Our Man's Portfolio: Regal's facing the heave- ho

EIGHT UP, four down - that is the no pain, no gain score after four months' investing. With many of the dozen shares selected dotted around the stock market's under-card, the steady headway recently achieved by small cap shares has clearly made a helpful contribution to the portfolio's performance.

Even so, the one and only Footsie constituent has provided much of the excitement. Allied Domecq, tipped at 482.5p, has been as high as 626.5p as the tug- of-war over its pubs estate has hogged the limelight.

Whitbread is offering shares; Punch Taverns has pounds 2.7bn in cash on the table. Many suspect that once the pubs are sold Allied's remaining wines and spirits business will attract an overseas bid and the relatively small fast-food operation will be unloaded. So if Punch should win the day, Allied's chairman Sir Christopher Hogg could have a pounds 7bn-plus cash mountain to distribute among shareholders. There is no rush for the portfolio to take any action; at this stage it is worth sitting tight.

One of the disappointments is the only mid-capper, the Safeway supermarket chain. But the shares are only a few coppers below the buying price and there is no reason to think Safeway will not emerge as a rewarding investment from the turbulence now engulfing retailers. And there is the comfort of a 5.9 per cent dividend yield. The rest of the pack, scattered among the smaller brethren, have more than held their own.

The reason for buying cider- maker Merrydown, which has suffered a mild hiccup, remains in place. Leisure group Springwood will hopefully overcome the sudden appearance of small sellers, and Paramount, a pubs chain, jogs along comfortably above its December low; builder Galliford has slipped from its year's high.

Regal Hotel has yet to top the tip price. The portfolio's first member has been a bitter disappointment. After threatening to fall out of bed the shares seem to have stabilised. The substantial Far Eastern shareholding is not inspiring confidence but there is little doubt Regal deserves a higher rating. Investment is a long-term exercise. But when a share pointedly underperforms it is wise to consider drastic action. I am sorry to warn that unless they start to display more confidence Regal could be destined to become the first no pain, no gain constituent to suffer the old and unceremonious heave-ho.

Gowrings, up from 103.5p to 148.5p, could be laying claims for long- term membership. Like Allied, there are break-up possibilities. Guinness Peat, one of the more active fund managers, has around 11 per cent and has advocated the merits of demerging the Burger King restaurant chain from the group's traditional car dealerships.

Montana, a pure restaurant business, is now preparing its sixth which will be at Wimbledon. Three prominent institutional investors subscribed for shares at 200p, raising pounds 960,000. Profits last year were pounds 103,000.

Global, the food group, has been active and made a successful take-over bid by feasting on Sims Food, a burger provider. Anglo Pacific, a mining group, continues to strengthen on hopes of corporate developments.

Start your day with The Independent, sign up for daily news emails
Sport
Tim Sherwood raises his hand after the 1-0 victory over Stoke
footballFormer Tottenham boss leads list of candidates to replace Neil Warnock
Arts and Entertainment
L to R: Hawkeye (Jeremy Renner), Captain America (Chris Evans) & Black Widow (Scarlett Johansson) in Avengers Assemble
film
News
Nigel Farage celebrates with a pint after early local election results in the Hoy and Helmet pub in South Benfleet in Essex
peopleHe has shaped British politics 'for good or ill'
News
news
PROMOTED VIDEO
Sport
Adnan Januzaj and Gareth Bale
footballManchester United set to loan out Januzaj to make room for Bale - if a move for the Welshman firms up
News
i100
Travel
Suite dreams: the JW Marriott in Venice
travelChic new hotels in 2015
Arts and Entertainment
Sink the Pink's 2013 New Year's Eve party
musicFour of Britain's top DJs give their verdict on how to party into 2015
Sport
Yaya Sanogo, Mats Hummels, Troy Deeney and Adnan Januzaj
footballMost Premier League sides are after a striker, but here's a full run down of the ins and outs that could happen over the next month
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
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.

iJobs Job Widget
iJobs Money & Business

Selby Jennings: VP/SVP Credit Quant- NY- Investment Bank

Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...

Selby Jennings: Quantitative Research | Equity | New York

Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...

Selby Jennings: SVP Model Validation

Not specified: Selby Jennings: SVP Model Validation This top tiered investment...

Selby Jennings: Oil Operations

Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...

Day In a Page

Transfer guide: From Arsenal to West Ham - what does your club need in the January transfer window?

Who does your club need in the transfer window?

Most Premier League sides are after a striker, but here's a full run down of the ins and outs that could happen over the next month
The Last Word: From aliens at FA to yak’s milk in the Tour, here’s to 2015

Michael Calvin's Last Word

From aliens at FA to yak’s milk in the Tour, here’s to 2015
Aren’t you glad you didn’t say that? The worst wince-and-look-away quotes of the year

Aren’t you glad you didn’t say that?

The worst wince-and-look-away quotes of the year
Hollande's vanity project is on a high-speed track to the middle of nowhere

Vanity project on a high-speed track to nowhere

France’s TGV network has become mired in controversy
Sports Quiz of the Year

Sports Quiz of the Year

So, how closely were you paying attention during 2014?
Alexander Armstrong on insulting Mary Berry, his love of 'Bargain Hunt', and life as a llama farmer

Alexander Armstrong on insulting Mary Berry and his love of 'Bargain Hunt'

From Armstrong and Miller to Pointless
Sanchez helps Gunners hold on after Giroud's moment of madness

Sanchez helps Gunners hold on

Olivier Giroud's moment of madness nearly costs them
A Christmas without hope: Fears grow in Gaza that the conflict with Israel will soon reignite

Christmas without hope

Gaza fears grow that conflict with Israel will soon reignite
After 150 years, you can finally visit the grisliest museum in the country

The 'Black Museum'

After 150 years, you can finally visit Britain's grisliest museum
No ho-ho-hos with Nick Frost's badass Santa

No ho-ho-hos with Nick Frost's badass Santa

Doctor Who Christmas Special TV review
Chilly Christmas: Swimmers take festive dip for charity

Chilly Christmas

Swimmers dive into freezing British waters for charity
Veterans' hostel 'overwhelmed by kindness' for festive dinner

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

Yazidi girls killing themselves to escape rape and imprisonment
Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

Ed Balls interview

'If I think about the deficit when I'm playing the piano, it all goes wrong'
He's behind you, dude!

US stars in UK panto

From David Hasselhoff to Jerry Hall