Page 39 - DIY Magazine September 2018

Avon Rubber PLC: 36.40%; 18.96
Announced a strong order book half-year report, underpinned by sales to the military and law- enforcement.
Berkeley Group PLC: 19.59%; 11.69
Final results were perfectly satisfactory, although an admission that ‘sites acquired in 2010-13) represent
a peak for Berkeley with profitability returning to more normal levels from 2018/19, when profits are anticipated to be around 30% lower’. BKG success in recent years has been as a result of well-considered investments and I need to have a think about this holding; two housebuilders in my portfolio feels unduly risky.
Creightons PLC: 246.95%; 8.78
A volatile holding that returned over 50% in Q2 to bring my overall gains back to a more reasonable level. Their preliminary results were very encouraging, mentioning ‘unexpectedly high growth in demand’; impressive management – see what I mean here piworld.co.uk to see what I mean.
Dialog Semiconductor PLC: (- 58.61%); 7.20
DLG’s dependence on Apple has come back to bite them; its share price collapsed after Apple announced they would be cutting orders for its chips. Why haven’t I sold?
1. The company is very cheap now, at seven times current earnings.
2. It has a very strong balance sheet with net cash, and remains free cash flow generative.
3. It announced its intention to reduce its reliance on Apple with a proposed offer for Synaptics. Read more about it here.
Diploma PLC: 81.18%; 22.18
Its half year report showed high single/low double digit growth; no bells and whistles, one to tuck away and leave to do its thing.
Gilead Sciences Inc: (-14.39%); 10.92
In a bit of a consolidation phase right now; acquisition of Kite Pharma has yet to bear fruit but remains promising that their cancer immunotherapy treatment holds high potential. In the mean time GILD is trading cheap and throwing off cash.
Howden Joinery PLC: 10.41%; 15.70
Good sales growth - trading update. Revenues up by 14.8% and planned depot openings continuing; they have been buying back shares for quite some time now which has increased per share book value by over 42% since 2015.
Michael Kors Holdings Ltd: 78.21%; 12.07
Routinely beats analyst estimates in the US; the integration of British shoemaker Jimmy Choo seems to have gone very smoothly with the company looking to open further stores of both brands throughout the year.
Another company generating high levels of free cash (seeing a pattern here?) that is also trading cheaply.
39 DIY Investor Magazine | Sep 2018