Friday, September 17, 2004
Cheer up Chaucer
Chaucer Holdings, my insurance stock, announces results for the first half of the year on Monday 20th of September at 7 a.m.
Despite strong final results, an encouraging AGM statement and most recently improved syndicate forecasts Chaucer shares have shown all the motivation and inspiration of a bloodhound with M.E. At today's 45p to sell they are down on the year to date and my stakes in the company have acted as a financial vampire, sucking the life and energy out of portfolio performance.
Comparisons with the previous interim results are confused by the huge issue of new shares on 10 April 2003. Another 133m shares were listed bringing the total now exceeding 290m. The subsequent dilution of profits per share will be significant but the final results of April 2004 can be utilised for a estimate of full year results and a fair price for the company.
I've come to expect lethargy from Chaucer shares. Analysts opinion is the insurance market is softening and about to dip into falling revenue. The City Cassandras and clairvoyants have been haranguing the public in a similar tone over housebuilders. With Ben Bailey and Chaucer representing each sector in my collection, the absence of advancement has been almost enough to make me renounce my beliefs and become a fully-fledged speculator chasing whichever hot stocks should be going up soon.
But I'm sticking with my philosophy of buying under-valued shares enjoying strong trading. The Dana Petroleum plan has put a lot of food on my table this year, the shares today sit at 350p, a high since purchase. We'll be better informed on Monday if Chaucer will be making a similar contribution.
The Artful Dodger
Despite strong final results, an encouraging AGM statement and most recently improved syndicate forecasts Chaucer shares have shown all the motivation and inspiration of a bloodhound with M.E. At today's 45p to sell they are down on the year to date and my stakes in the company have acted as a financial vampire, sucking the life and energy out of portfolio performance.
Comparisons with the previous interim results are confused by the huge issue of new shares on 10 April 2003. Another 133m shares were listed bringing the total now exceeding 290m. The subsequent dilution of profits per share will be significant but the final results of April 2004 can be utilised for a estimate of full year results and a fair price for the company.
I've come to expect lethargy from Chaucer shares. Analysts opinion is the insurance market is softening and about to dip into falling revenue. The City Cassandras and clairvoyants have been haranguing the public in a similar tone over housebuilders. With Ben Bailey and Chaucer representing each sector in my collection, the absence of advancement has been almost enough to make me renounce my beliefs and become a fully-fledged speculator chasing whichever hot stocks should be going up soon.
But I'm sticking with my philosophy of buying under-valued shares enjoying strong trading. The Dana Petroleum plan has put a lot of food on my table this year, the shares today sit at 350p, a high since purchase. We'll be better informed on Monday if Chaucer will be making a similar contribution.
The Artful Dodger
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