The G&W portfolio rose 1.99% during September while the benchmark fell 1.26%.
There was no buying or selling activity during the month. My ASX-listed stocks continued to rise during the month and Capral (ASX:CAA) paid a special dividend. Late in the month, Spicers (ASX:SRS) announced it was selling its Asian operations. Spicers has been the best performing stock in the portfolio. I bought it in August and October last year for an average cost of 3.4c. At the close of trading today, the stock was trading at 5.6c. At the time I bought it, Spicers was an ugly stock in an ugly industry that no-one wanted to buy. Some simple back of the envelope calculations were all that were required to see it was a screaming bargain. There have been a number of favourable developments since then, and I now believe the stock is trading at, or just slightly below, fair value. Nevertheless, there is still potential for the business, and thus the share price, to improve. During the month, I sold Spicers shares I held in a joint brokerage account with my family members — about one fifth of my total position. (The rest of the shares are held in the G&W portfolio.) I will continue to monitor the position closely.
I will also briefly discuss the Opus Group/Lion Rock Printing situation described in last month's blog. Since my last post, Opus Group has ceased trading on the ASX. Left Field Printing Group is due to begin trading on the HKex on October 8. Shortly before OPG ceased trading, I bought additional shares for my family's joint brokerage account at 40c. The indicative price for the Left Field Printing Group share offer is HK$1-$1.10. Under the transaction, OPG holders receive three Left Field shares for each OPG share. If the shares trade at the share offer price, which is certainly not guaranteed, that implies each OPG share is worth HK$3-3.30 — or, 53.17-58.48 Australian cents at current exchange rates. For that most recent parcel, that's a premium of between 33-46%. Not bad, especially considering the short holding period. I will continue to provide updates as the situation progresses.
*Edit, October 3, 2018: The performance figures for this month were restated due to a mistake; in my earlier post, I forgot to account for the Capral dividend discussed in the post.
August 3, 2017
|
September 30, 2018
|
Since July 1, 2018
|
Since Inception
|
Annualised
| |
G&W Portfolio
|
1.0000
|
1.0935
|
2.75%
|
9.35%
|
8.02%
|
Benchmark (SPAX2F0)
|
61,250.80
|
71,070.06
|
2.92%
|
16.03%
|
13.69%
|
There was no buying or selling activity during the month. My ASX-listed stocks continued to rise during the month and Capral (ASX:CAA) paid a special dividend. Late in the month, Spicers (ASX:SRS) announced it was selling its Asian operations. Spicers has been the best performing stock in the portfolio. I bought it in August and October last year for an average cost of 3.4c. At the close of trading today, the stock was trading at 5.6c. At the time I bought it, Spicers was an ugly stock in an ugly industry that no-one wanted to buy. Some simple back of the envelope calculations were all that were required to see it was a screaming bargain. There have been a number of favourable developments since then, and I now believe the stock is trading at, or just slightly below, fair value. Nevertheless, there is still potential for the business, and thus the share price, to improve. During the month, I sold Spicers shares I held in a joint brokerage account with my family members — about one fifth of my total position. (The rest of the shares are held in the G&W portfolio.) I will continue to monitor the position closely.
I will also briefly discuss the Opus Group/Lion Rock Printing situation described in last month's blog. Since my last post, Opus Group has ceased trading on the ASX. Left Field Printing Group is due to begin trading on the HKex on October 8. Shortly before OPG ceased trading, I bought additional shares for my family's joint brokerage account at 40c. The indicative price for the Left Field Printing Group share offer is HK$1-$1.10. Under the transaction, OPG holders receive three Left Field shares for each OPG share. If the shares trade at the share offer price, which is certainly not guaranteed, that implies each OPG share is worth HK$3-3.30 — or, 53.17-58.48 Australian cents at current exchange rates. For that most recent parcel, that's a premium of between 33-46%. Not bad, especially considering the short holding period. I will continue to provide updates as the situation progresses.
*Edit, October 3, 2018: The performance figures for this month were restated due to a mistake; in my earlier post, I forgot to account for the Capral dividend discussed in the post.
