Imi Share Discussion Threads

[broadwood] 08/12/2010 22:53

Engineering group IMI (IMI.L) has been promoted to Britain's blue-chip FTSE 100 index .FTSE after the latest review, indexes complier FTSE Group said on Wednesday.

IMI will replace defence contractor Cobham (COB.L) which has been demoted to the FTSE 250 index .FTMC.

Companies outside the FTSE 100 that grow to rank among the 90 largest by market capitalisation are promoted into the index, while FTSE 100 companies with the lowest value or that fall to 111th spot or below drop into the FTSE Midcap 250 index.

[wendsworth] 08/12/2010 20:16

Typo56: Thanks.I did have my the finger on my mouse poised yesterday afternoon when it was trading in the 957/958 range but thanks to d.f.'s post and research on ther FT website decided to stick with it if necessary on the basis of fundamentals . I must say I was a little suprised by this afternoon's dribbling-off in the share price. Phew!

Tomorrow ......is another day!

[bluebelle] 08/12/2010 11:06

DF

As I said, we each manage our own portfolios with our own objectives, styles and personality. I suppose also my experience is influenced by the fact that had I done that - as many on these boards told me I should - on one particular holding, it would have cost me a significant sum.

I no longer care if one share, as a result of its performance, dominates my portfolio as long as the reasons I had for buying it in the first place are still valid and I know of nowhere better to put the proceeds were I to sell.

[deanforester] 08/12/2010 10:56

Bluebelle - 8 Dec'10 - 10:00 - 76 of 77

Not intended as a criticism (and certainly not advice) as we each manage our own portfolio as we see fit, but surely the problem with that method of asset allocation is that your holding of your most successful share(s) is all too often determined by the (poor)performance of your weaker ones.

It comes down to risk management. I limit the amount in any one share to about 5% of the whole. A further point is that I am investing for income, and almost invariably the share which shoots up has a low yield. Consequently I recycle the cash into a share or shares with higher yield. It's a way of jacking up the income.

To take your analogy with gardening, I'm pulling up the ones that have bolted and run to seed, and replanted some heavy croppers.

You are right in that sometimes, in a falling market, it is the share that falls least (or even rises) that may get trimmed back.

There is more than one way of measuring performance, not just by the way the share price moves.

DF

[wendsworth] 08/12/2010 10:54

Bluebelle : Will have a look at CLIG as you suggest. Certainly agree with the sentiments expressed in your penultimate sentence.

[bluebelle] 08/12/2010 10:50

wendsworth
In as much as anything is, IMI is a core hold for me : ticks all of my boxes at the moment. If you like good companies with quiet boards (until recently at least) have a look at CLIG. Recently moved to main market from AIM and likely to be included in the FTSE250 this week.

On balance, I hope IMI does make the 100, and buy into the 'index tracker' argument but it wouldn't unduly upset me if it didn't. I think there's a bit of chicken and egg about it. The reason that companies are promoted and (usually) do well afterwards, is that their performance has justified the elevation, rather than the other way round.

FWIW I like AMEC too !

[jimmymcs1] 08/12/2010 10:49

is imi entering footsie?

[wendsworth] 08/12/2010 10:36

D.F : Understood.

Bluebelle : An interesting comment and analogy! You'll have seen from my posts that I changed my mind with IMI having sold out last week and then bought back in at a marginally higher price!

I have to say from my limited experience that trading shares with relatively quiet BBs has been particularly successful for me. Exel and AMEC immediately spring to mind.

[bluebelle] 08/12/2010 10:00

Not intended as a criticism (and certainly not advice) as we each manage our own portfolio as we see fit, but surely the problem with that method of asset allocation is that your holding of your most successful share(s) is all too often determined by the (poor)performance of your weaker ones.

I personally in those circumstances choose to let my profits run on - or add to my holding of - my best performer (and maybe use a trailing stop loss if the market outlook is uncertain), and sell the worst performer, replacing it with something better (often easier said than done I realise).

Doing the opposite is a bit like walking round the garden pulling up your best flowers and watering the weeds !!!

[deanforester] 07/12/2010 23:22

I'm still in them, but if they rise much higher I shall be selling 25% to avoid going overweight. My policy is not to let any one holding get higher than 1.5 times the median holding value. If I do trim back, the proceeds will likely go into IMT.

DF

[wendsworth] 07/12/2010 20:43

D.F : Hope you're still in IMI. If FTSE entry is confirmed tomorrow you will be on to 'a nice little earner' !

[deanforester] 07/12/2010 17:32

You are very welcome.

DF

[broadwood] 07/12/2010 16:00

DF - yep, thanks for that. Been looking unsuccessfully for something like that.

[wendsworth] 07/12/2010 15:49

DeanForester : Many thanks.Extremely useful site. At 3.04 billion then IMI would indeed be in the key 90th position at close of play.Hence today's rise and late buying.

b.w : Looks nailed on for FTSE entry!

[deanforester] 07/12/2010 15:22

If you go to you will see the latest runners and riders set out in an easily understood format.

IMI is 91st, which is one position below automatic entry, but there is no company in the automatic exit zone. If nothing changes they will stay in the FTSE250.

DF

[broadwood] 07/12/2010 15:03

I think so. I looked all this up a while back on the Stock Exchange website.

There certainly seems to have been some concerted buying today so maybe vested interests are involved.

[wendsworth] 07/12/2010 14:56

b.w. and Bluebelle : My understanding is that if any company's market cap is better than 90th overall then any FTSE companies currently at 101 to 110 AUTOMATICALLY have to make way. On that basis with today's >3% rise in IMI's market cap then Cobham HAS to make way for IMI. ....assuming prices are near to current levels at close of play today.

Am I right?

[bluebelle] 07/12/2010 14:27

Yes. The fact that it isn't has really held the price back this year.

[broadwood] 07/12/2010 14:20

Looks touch and go. Is the market anticipating it will be in? You'd think there would be some disappointment if it doesn't make it.

[wendsworth] 07/12/2010 14:11

So glad I had the 'nouse' to buy back in.

Really think this will go to £10 pretty quickly if the FTSE membership is confirmed.

[broadwood] 07/12/2010 11:18

Response from Company.

Thank you for your email. This decision will be made by the FTSE Committee on closing prices today. They will make an announcement tomorrow advising who has joined or left.

[wendsworth] 06/12/2010 15:18

Back in !

Cost me 10p overall but I consider there is much more UPSIDE.

[bluebelle] 06/12/2010 12:29

FWIW I added this morning.