Portfolio Update

Portfolio Update

Sales

Had a couple of changes to my portfolio so now is a good time to give an update. I sold my entire position in Emeco Holdings (ASX:EHL) after I reconsidered the downside to be unprotected. My original post on it had estimated liquidation value based on a 25% discount to its plant and machinery, however after shutting down its Indonesian business it could only sell equipment at a 50% discount. I contacted management and they confirmed that these were global sales and the discount reflects a worldwide decline in their saleable value. I view Indonesia’s mining collapse as a political anomaly but this steep discount has worried me as a 50% discount to all equipment essentially wipes out the companies equity.

I think there is a good chance the company will survive and if there is a recovery in mining then this stock will trade at multiples of its current price. But I am conservative and this company simply can’t survive any further problems and there is no protection on the downside for shareholders so I exited.

I sold at $0.0245 which was above my purchase price, but the currency moved against me and I lost 4.3% on the position in £ terms. This is my largest realised loss on a single share; I can only hope that I continue to only suffer small losses from my mistakes.

Purchases & Portfolio

After my Pental article I purchased shares and it is now a 4.4% position. This is how my portfolio now looks.

Amlin4.9%
Berkshire Hathaway2.7%
Oracle3.1%
JD Sports2.4%
Kentz2.8%
Renn2.7%
Tesco1.4%
Apple1.9%
Avangardco3.3%
Argo2.9%
Craven House Capital29.9%
Clear Leisure plc3.2%
Weiss Korea Opportunity10.7%
Goldplat4.8%
Pental Ltd4.4%
Awilco Drilling3.0%
Cash16.0%

I hope to soon be putting another chunk of that cash to good use with a new prospective investment currently on my desk which just needs some further due diligence before I pull the trigger.

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Andy Blinston

Founder of Investing Sidekick. Works as an operational research analyst and is an avid value investor, always searching for undervalued shares. An SA certified writer.

2 Responses to Portfolio Update

  1. John says:

    I absolutely hated it that WKOF’s price ran away when I tried to accumulate. It’s essentially an arbitrage with a fixed upside. It’s difficult to get myself to chase the price.

    Wow, your holding in CRV is lopsided. But it looks like I can’t buy it via my broker InteractiveBrokers for overseas stocks from Australia.

    • Yes CRV is quite big, was originally about 15-20% and has run up 80% since, but book value has also increased massively so I still see upside.

      I had a chance to reduce the size last year at about book value but I got greedy and held on, that’s cost me quite a bit lol.

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