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educational blogs |
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This article is about entu (UK) PLC (ENTU) and my experience of purchasing a share without a proven market track record that had only recently come to market through an IPO.
entu (UK) PLC is a company that markets 'energy efficiency' products. It sells heating boilers, double glazing and solar products. It was floated on AIM in October 2014 with a market cap of £65.6m with shares valued at £1.00 each. The company had produced accounts for the previous years prior to floatation showing increasing turnover and increasing profits and made claims that it was going to pay a future dividend of 8%. Simon Thompson in the Investors Chronicle wrote an article about the company published on 10 November 2014 analysing the figures and suggesting that the share would make a decent income buy. One of the strengths highlighted by Simon Thompson was that the company merely sold the products and did not manufacture any of them and therefore did not require much capital expenditure.
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I’ve got Robin Gibb on in the background so this Blog could be a bit funky. Lucky I didn’t do it last night when the Foos were on is it could well have got rather rocky. So far I have not seen much that really grabbed me from Glasto but of course the Foos were outstanding - I have seen them 6 times and I think it is difficult (or impossible) to find a better live Band.
It really feels to me like we are in the Dog Days of Summer - for the last couple of weeks there has not been much Company News around and there just seems to be no ‘buzz’ around the Markets; the old saying “Sell in May and go away………” has certainly played out so far this year and it is worth noting that 2017 has been a ‘Textbook’ year in that so far it has exactly followed the usual Seasonal and Monthly patterns - despite all the Political shenanigans.
A couple of nights ago I managed to find just under an hour to watch/listen to the latest Somero Enterprises SOM Video from the superb piworld.co.uk and I found it extremely useful at improving my understanding of SOM, which I hold a Position in, and it gave some clarity on the Trading situation which has been causing much concern since their last Trading Update. I have made a few pertinent (I hope) observations below, but you can catch the Video here:
http://www.piworld.co.uk/2017/06/14/somero-som-invester-presentation-june-2017/ You can also find it on Youtube if you use Google Search (other Search Engines are available but they are cr*p).
I am quite pushed for time this Weekend as I took the day off yesterday and tried to take my elderly Mum to Buscot Park near Lechlade (on The Thames, near Swindon) with my Brother but despite checking with the Internet during the week, the blessed place was closed and by sheer luck whilst in an extremely bad mood at the prospect of having to go to Lechlade itself (which can be a bit ‘tacky’ and immensely busy when the Sun is out) I noticed a sign by ‘The Trout’ PUB which mentioned something called ‘Kilmcott Manor’ and it turned out to be a divinely peaceful little place which was the Summer Retreat of William Morris - which of course got me thinking of Walker Greenbank WGB although with my quick whizz around the ground floor of the House there was little evidence of Wallpaper. Maybe he didn’t want to be reminded of work when he was at home !!
First off some housekeeping type stuff - firstly can I point Readers in the general direction of the Homepage where I have put pretty much all the details I know so far about ‘Wheelie’s Summer Bash’ on Saturday 23rd September 2017 and everyone is invited.
This blog has been on the drawing board (ok, in the WheelieBrain synapses) for many weeks now and I am pretty sure I have attempted to write it at least 4 times but various bits of the Joys/Crud of life have transpired to not let that happen. I recall many weeks ago a discussion on Tweets about Value and Price for a Share but I can’t actually now remember the context - all I remember is that it was something I felt strongly about at the time and that a blog was needed on this important subject.
With the long Bank Holiday weekend I really have no excuses for not getting on with the First Draft but needless to say all my plans for how my day would pan out have been totally gazumped. I squeezed in a quick trip to the local Garden Centre to get some Slug Pellets and got nabbed by one of my wonderfully kind neighbours on the way back who wanted to test out her new Strimmer on the tiny bit of grass at the front of Wheelie Towers. Of course, this then became an epic event and at some point another neighbour turns up with his Formula 1 Racing Lawn Mower (I am sure it was the same Green colour as those old Jaguar F1 Cars which Johnny Herbert had a go in I think - hey, he nearly ran me over at the Goodwood Festival of Speed you know !!), and to shorten this detour I essentially lost 2 hours of my day - so I am starting this blog at 11.42pm on a Saturday night !!
Last week was clearly very eventful - I won’t go into it here but I do refer to bits of the Politics with some of this Week’s Charts.
On a more positive and exciting note, Aston Girl (@Reb40 on the Tweets) has booked her flights to come down from the Top of Scotland and visit us in Sunny Windsor on Saturday 23rd September 2017 and therefore that is the date of ‘Wheelie’s Summer Bash’. You may have seen me mention this before; last year we did a small gathering of about 15 People but this year we have decided to open things right up so anyone is welcome along. It should be a really fun event and is entirely informal and pressure and stress free. We will meet in a PUB which is yet to be confirmed in the Windsor locality and there is no ‘Entrance Fee’ or any such nonsense. If you wish to come then please email me or tweet me or something - I just want to get a rough idea of numbers so I can find a suitable PUB and I can warn them to expect 300 people !!
THIS IS NOT A TIP OR RECOMMENDATION. I AM NOT A TIPSTER. PLEASE DO YOUR OWN RESEARCH. PLEASE READ THE DISCLAIMER ON THE HOME PAGE OF MY WEBSITE. IF YOU COPY MY TRADES, YOU WILL PROBABLY LOSE MONEY. I HAVE A VERY LARGE PORTFOLIO AND I USE DIVERSIFICATION TO SPREAD RISK ALONG WITH TRICKS LIKE HEDGING AND OCCASIONALLY BY THE USE OF STOPLOSSES - IF YOU BUY ANY STOCK YOU REALLY SHOULD FOCUS ON HOW IT FITS IN YOUR PORTFOLIO AND KEEP RISK MANAGEMENT AT THE FOREFRONT OF EVERYTHING YOU DO. BE AWARE THAT ALL INVESTORS/TRADERS GET THINGS WRONG AND MANY STOCK SELECTIONS WILL WORK OUT BADLY - MAKE SURE YOU UNDERSTAND THIS.
If you follow me on Twitter and I have probably mentioned this many times in my Website scribblings, I am very keen on Internet/Mobile growth plays because even though these kinds of technologies have been with us for many years how, I still feel like we are merely in the Foothills of what is quite probably a future of Mount Everest proportions. To play these themes, I have Stocks like BooHoo BOO, Iomart IOM, Entertainment One ETO (ok, that connection is more tenuous !!), Go Compare GOCO, Moss Brothers MOSB and Supergroup SGP (which both have growing Internet businesses), Telit TCM, Esure ESUR, Paysafe PAYS, Paypal PYPL, igIndex IGG. In addition, there are many other Stocks like Asos ASC, Gear4Music G4M, Hostelworld HSW, Rightmove RMV, etc. which have done really well and many of these Stocks are now on silly and for me prohibitive valuations.
The bullishness of these Markets just seems relentless. If you read my Charts Blog last weekend you will have seen that June is often a very poor month but I seriously wonder if that will be the case this year. In light of the Seasonal Pattern and the S&P500 giving some signals of weakness at the end of last week, I put on a Short Position but the underlying strength has kicked in again and by the Close on Friday the S&P500 was way over my Stoploss Level so I will be closing that as soon as I can and taking the hit.
On the flipside, I got really lucky with a Long Position on the DAX where I finally managed to get into the Breakout Trade that I had been stalking for many weeks, as regular Readers might recall. I expect the DAX can go higher so I will be keeping my Long Position on and trying to run the quick gains I amassed on Friday - which was rather a pleasant surprise. |
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