Thursday, February 17, 2005
Tiger Tim and the Mayborn Men
Mayborn, my fourth largest shareholding, has burst into life this month. As winter starts to lose it's grip, Mayborn is spurting upwards and at 295p to sell has hit a new high since my 2004 purchase at 282p.
I doubt it's the weather that increased interest in the nappy manufacturer, even stockmarket investors are rarely deluded into buying off the back of a few more bees buzzing or daffodils dancing.
On March 10th, 2004, Mayborn announced full year results, a similar announcement can be expected next month. Mayborn is typically a pretty pedestrian share, showing meagre movements and toddling along in no particular direction like one of their own customers. That changed a couple of weeks ago, as sustained buying saw the shares rise from 247p to today's 295p and I'm guessing people are buying in anticipation of March's announcement.
This is common behaviour for smallcap shares. The markets they operate in are tiny and under-reported. It's tough to fathom how the company will be faring without stock exchange declarations. This makes an appraisal impractical at quiet times, resulting in lacklustre price movement. It's a phenomenon akin to Wimbledon fever - for the rest of the year tennis fans are as rare as Tory voting foxes - but in the month before England's premier tennis event, Tiger Tim Henman is back in the news, and an uncharacteristic attitude of unfounded optimism sets into the British mindset. After the competition is decided, apathy and disinterest descend as inevitably as boyband posters from a bedroom wall.
March is set to be a busy month for my portfolio, Chaucer have announced finals will be out on March 18th and Ben Bailey can be expected to report even earlier in the month.
Tim Henman perenially disappoints his followers at Wimbledon. My money is on Mayborn to do different.
The Artful Dodger
I doubt it's the weather that increased interest in the nappy manufacturer, even stockmarket investors are rarely deluded into buying off the back of a few more bees buzzing or daffodils dancing.
On March 10th, 2004, Mayborn announced full year results, a similar announcement can be expected next month. Mayborn is typically a pretty pedestrian share, showing meagre movements and toddling along in no particular direction like one of their own customers. That changed a couple of weeks ago, as sustained buying saw the shares rise from 247p to today's 295p and I'm guessing people are buying in anticipation of March's announcement.
This is common behaviour for smallcap shares. The markets they operate in are tiny and under-reported. It's tough to fathom how the company will be faring without stock exchange declarations. This makes an appraisal impractical at quiet times, resulting in lacklustre price movement. It's a phenomenon akin to Wimbledon fever - for the rest of the year tennis fans are as rare as Tory voting foxes - but in the month before England's premier tennis event, Tiger Tim Henman is back in the news, and an uncharacteristic attitude of unfounded optimism sets into the British mindset. After the competition is decided, apathy and disinterest descend as inevitably as boyband posters from a bedroom wall.
March is set to be a busy month for my portfolio, Chaucer have announced finals will be out on March 18th and Ben Bailey can be expected to report even earlier in the month.
Tim Henman perenially disappoints his followers at Wimbledon. My money is on Mayborn to do different.
The Artful Dodger
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