Venture Life Share Discussion Threads

[apad] 01/10/2016 09:23

ROCE on top holdings. Terry Smith used this measure to identify TESC weakness when Buffet was buying billions! Hard to mask it seems?

FEVR
ABC
BOO
RSW
TRCS
TSTL
23%
15%
21%
15%
18%
18%

[prince7652] 01/10/2016 07:57

Holding and adding too

[haywards26] 30/9/2016 22:52

I am looking for £2 in the next few months Mod.

[modform] 30/9/2016 21:33

HGM, I agree is very cheap, I hold

[haywards26] 30/9/2016 20:36

Talking of foreign, finally my Russian Highland Gold Mining has set off to the races, nicely up now after a couple of years in the red. A Russian gold mining company, with Chelsea's Abramovich as a major shareholder. Must have one of the lowest all in costs per ounce in the sector. Divi likely to be 5-7% this year and on a P/E of around 6.

The Gold price is shooting up nicely with the financial turmoil in Europe and elsewhere.

[haywards26] 30/9/2016 20:30

APAD

The final red flag - Anything foreign made me laugh!!

[petersinthemarket] 30/9/2016 19:54

yes mod, I did take a look at sim. Didn't buy, despite the positives. I liked the chart and they were holding cash/assets near to mkt cap value. Good solid business. Problem was, and still is to some extent, I couldn't see where they were taking the business. It just seemed to languish. And still nothing much has happened. If the assets are nearly the same as the mkt cap you might decide that there is little risk but there has to be a possibility of an increasing sp, and that hasn't really shown yet. They should have spent the cash on something earnings enhancing. On balance, a good business, but not obviously going anywhere. Pls feel free to correct me if I have missed something.

Have a good weekend all. See you Monday. pete

[apad] 30/9/2016 18:58

TMFMayn list:

"Small-cap red flags can include:

* too much debt vs profit
* poor profit-to-cash conversion (especially too much cash being absorbed into working capital -- i.e. customers not paying, stock going unsold etc)
* substantial tangible/intangible capex and consistently much greater than the associated depreciation/amortisation charged against earnings
* frequent and/or significant acquisitions (especially where the purchase cost is greater than the annual profit)
* poor/haphazard past operating record
* dependence on handful of or powerful group of customers
* dependence on single/few products, with significant R&D required to remain competitive
* operating in an industry that is suffering obvious structural decline (e.g. newspapers)
* unproven or colourful or greedy management
* a chief exec without direct hands-on experience of the product or industry (i.e. avoid financial engineers and accountants turned bosses)
* anything you read where the main bull case is based on a "cheap valuation" or "turnaround potential", and skirts around any business qualities
* anything foreign "

[modform] 30/9/2016 17:53

BTW red, thanks for the response. Poor lad if that was his first trade. I got lucky with mine, AZN when it broke from ICI at 5.30, and then NXT , I held both for almost 25 years before selling.

[modform] 30/9/2016 17:50

SIM has broken out, I know you were interested Pete when I mention it here sometime ago, not sure if you dipped your toe in. Very speculative, foreign aim blah blah...

[redartbmud] 30/9/2016 17:04

Did a cheeky trade in BT.A today. Bought at £3.83675 and sold at £3.8985.
Small profit, but every little helps.
I like this day trading.

red

[petersinthemarket] 30/9/2016 16:16

Questor Friday Column 30sept proposes a new Friday Column route specifically designed for income.

Premise is to make £25k pa from a £500k pf. Ambitious, so might boost returns by taking profits here and there. PF size is obviously not appropriate to all so scale up or down.

Tactics: 60%, roughly 10sh, will be safe-ish shares with a yield.

The other 40% might go for hi-risk hi-div sh, even at the expense of capital. Some starter ideas are Commercial property, maybe F&C Commercial Property Trust (FCPT) 123p/yld4.9%; Venture Capital, maybe Baronsmead Venture Trust (BVT) 83p/7.9%; Peer-to-Peer (5% pf), typ 9% yld; Bonds (20% pf), maybe Premier Oil 12%yld/2020, Ladbrokes 3.7%/2022.

Not really my style but might interest some on here. Also, I've just been asked to set up a safe slow burner dividend biased isa for my mrs so I'll certainly look in at the sh selections from time to time. GL, pete

[apad] 30/9/2016 12:45

:-) That's what stopped me going further as I realised I'd have to go back to the report and understand different terminologies. Receivables!
apad

[apad] 30/9/2016 12:14

Ta. Ed.
My judgement is based on the fact that they are experienced builders buying companies in a niche, not besuited accountants buying balance sheets (e.g. JDG). Backing management, I guess.
At the moment I am constructing freecashflow yield for a specific year, so high and low values for the old years and position in the band for the current year to try and get an idea whether the valuation in its own context is high or low. I haven't seen this recommended, but I am a great fan of local context.
apad

[apad] 30/9/2016 11:49

ed
I think you are way ahead of me.
I know I have to use easily accessible figures (I use TD). So fund raising by acquisitive PFFC tests my patience.
Can I access PFFC's for PTSG easily.
Any tips appreciated.
apad

[redartbmud] 30/9/2016 08:49

APAD

Capita share management systems and personnel have been a train wreck for years. None of the players are great, but in my opinion, and from my dealings with them, Capita are the worst by a country mile.
If that is representative of the business then I would have concerns over the rest of it. Not a company that I would be interested in owning.

Just MHO.

red

[redartbmud] 30/9/2016 08:42

Markets well out of sorts. Some sectors are being trashed.
I wonder how long for?

red

[redartbmud] 30/9/2016 08:40

mod

Metier has dropped off the radar. I think that Soli was probably his first venture in to the markets. He was very disillusioned after the share price fall, and the positive comments at the AGM made it worse.
I ditched mine at a thumping loss. I have seen, first hand, situations where FD's have come and gone in short order. It hasn't ended well, and quite often there have been significant underlying issues. I am not aware, or saying that, there are issues underlying Soli but I did not think that the FD in situ had a grip on the accounts, before or after.
They seem to live on buying companies every year or so, but I am not sure of the strategy involved. ie. Not sure they have the infrastructure/personnel to manage and integrate the acquisitions.
If I am wrong, so be it. I can only make a judgment based on what I have read and seen. The loss of the MOD contract was mega. If they lost Renishaw as well I would be more concerned.

red

[apad] 30/9/2016 07:48

What else do you own and what's on your shortlist, valu?

The best way to get a response is to give.

apad