Page 41 - DIY Magazine September 2018

Next PLC: (-0.78%); 13.87
The retail environment remains challenging; retail sales down 4.8% in Next’s trading statement, but online sales up 18.1% delivering an overall increase of 6% across the brand. With a dividend yield of 2.61% and regular share buybacks, I’m happy to continue to hold for the foreseeable future.
Persimmon PLC: 21.53%; 10.70
In a trading update PSN announced sales revenues up 8% on last year; I’m currently thinking I will sell Berkeley and keep Persimmon.
Playtech PLC: (-30.94%); 12.11
Threw a curveball with a profit warning in their trading update; a highly disappointing holding since 2015 and I will be giving serious thought to selling.
Somero Enterprises PLC: 38.46%; 13.91
A very positive trading statement in June; positive growth and further opportunities across almost all geographical trading areas - exciting possibilities ahead.
Taptica PLC: (-19.66%); 9.61
A short trading update announced EBITDA ahead of market expectations. The integration of Tremor Video DSP is going well.
Taptica got caught in the shockwave of the XLMedia profit warning, which felt unfair as they are rather dissimilar to one another, but they seem to have shaken this off with the share price in recovery.
Wizz Air Holdings PLC: 115.97%; 15.09
Double digit growth in passengers carried, revenues and net income - final results; I am so impressed by this company and its ability to successfully manage growth in what is a highly competitive industry.
WIZZ has one of the youngest and most cost-efficient fleets in the business; it added to its fleet throughout the year and invested in their UK operations at Luton airport.
Looking ahead
My current portfolio has an overall forward P/E of 16 times earnings, which in this climate seems pretty reasonable; I’m satisfied to be exceeding my benchmark and contributing to strong compound annual returns. It’s no 2017 by any means, but then there’s nothing to say it should be.
There’s a mix of cheap, cash generative companies, that are struggling a bit, and more highly valued growth companies managing to continue their strong performance. Two to consider selling, Berkeley and Playtech and that’s my homework for the week.
Read a few new books (although none about investing!) - take a look at my recently read page; The Culture Code was excellent, and I’m thoroughly enjoying Modern Monopolies.
I’m planning to re-read The Intelligent Investor next; every time I feel overwhelmed by EBITDA margins, operating cash flow conversion and discounted cash flow valuations, I go back to Ben Graham’s classic. It clears my mind. I wish you all the best for the remainder of 2018. Remember, there’ll always be someone with higher returns than you. Don’t fret; as long as you’re satisfied you’re making an adequate return for the amount of risk you’re taking, that’s all that matters.
Don’t let returns drive your investments. Let your investments drive your returns.
“The stock investor is neither right or wrong because others agreed or disagreed with him; he is right because his facts and analysis are right.”
Benjamin Graham, The Intelligent Investor. Happy Investing!
Find me on Twitter @BritishInvestor.
41 DIY Investor Magazine | Sep 2018