Artful Investing

Shares in Chaucer, my oldest shareholding, advanced to 70.25p to sell today after reporting interim results. With net tangible assets at 46.7p and six-month earnings at 5.4p, the shares are approaching fair value. Without seeing the forecasts for the full-year however, my preliminary estimate is that the shares are worth 72.5p, using the diluted earnings per share number. I've held Chaucer shares for over three years now, after first purchasing at 42.88p in 2003, an annualised return of 18%. That's a little disappointing, but we will have to add in a dividend of around 4% every year. Further, the board today announced the interim dividend will be 1.10p and the final dividend of 2.26p. That's a dividend yield of 7.8% on my original investment, a superb income. If another opportunity presents itself I'll be selling and taking advantage, but I've not seen anything yet.

nCipher interims on Thursday.

The Artful Dodger