Sunday, April 06, 2008
RC Group hurts portfolio performance
RC Group made a few announcements recently. They are a large portion of my portfolio. I bought at 102p. Two weeks ago they slumped to 50p, despite excellent results from the company.
Since then, RC Group have let investors and the market know all about recent new orders and awards. This has led the share price to advance. Good. But the shares trade at only 67p to sell.
RC Group is the cheapest I have ever seen any stock ever. They are a profitable company in a booming market. The problem is, the daily share prices are dominated by private investors, 'retail investors' as they are sometimes known or even 'mug punters'. I hope I'm not the latter. What RC Group needs is what we call institutional interest, professional fund managers buying the company's shares. The number an institution needs to affect their fund's performance would be much larger than the aggregate of many thousands of Joe Bloggs investors like myself. This should bring some stability to the share price and hopefully a more rational pricing by the market. I now believe the shares are worth 180p. I hope they get there.
Another company that I expect to advance soon is Tandem Group. Tandem will probably announce results for the year toward the end of April. RC Group also have an AGM coming up in which they will hopefully provide more guidance on how 2008 is progressing.
Royal Bank of Scotland has rallied recently but still remains some way below my purchase price. SOCO International is encountering more delays on its key well, the 'E' prospect offshore Vietnam. This has proved a massive frustration. Barclays has recovered a bit too. Dividends should be arriving soon.
The Artful Dodger
Since then, RC Group have let investors and the market know all about recent new orders and awards. This has led the share price to advance. Good. But the shares trade at only 67p to sell.
RC Group is the cheapest I have ever seen any stock ever. They are a profitable company in a booming market. The problem is, the daily share prices are dominated by private investors, 'retail investors' as they are sometimes known or even 'mug punters'. I hope I'm not the latter. What RC Group needs is what we call institutional interest, professional fund managers buying the company's shares. The number an institution needs to affect their fund's performance would be much larger than the aggregate of many thousands of Joe Bloggs investors like myself. This should bring some stability to the share price and hopefully a more rational pricing by the market. I now believe the shares are worth 180p. I hope they get there.
Another company that I expect to advance soon is Tandem Group. Tandem will probably announce results for the year toward the end of April. RC Group also have an AGM coming up in which they will hopefully provide more guidance on how 2008 is progressing.
Royal Bank of Scotland has rallied recently but still remains some way below my purchase price. SOCO International is encountering more delays on its key well, the 'E' prospect offshore Vietnam. This has proved a massive frustration. Barclays has recovered a bit too. Dividends should be arriving soon.
The Artful Dodger
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