3M in, Kingspan moved

PostIt Note

3M has been acquired today, with a large cap sizing, to mop up some of the cash accumulated in Obliquity London (dividends + Volkswagen sale). There’s very little to write about, it’s a model Obliquity stock and had been on the watch list for a while. Timing doesn’t look too good in the very short term as it’s just gone up in the past few days, but better get in now than later at a higher price.

Insulation

In an internal trade, the Stamp Collection has “sold” Kingspan, an insulation manufacturer, to Obliquity London. It had been rejected for the main portfolio, back in 2012, for being too small, undiversified and family-owned, but it’s maturing nicely, diversifying both through acquisition and organic developments. Still not cheap, but larger and stronger, so good enough for graduation. It also doesn’t fit so much any more in the stamps portfolio which is about special situations and small oddballs.

Keep steady…

Of the recent buys, Pearson has seen a harsh profit warning, but nothing that distracts from the underlying case, so we’ll do nothing, other than lament the unfortunate timing.

… if not forgetful

In a slightly more comical development, I saw the value of SIG plc drop on a profit warning in the FT’s portfolio tool. This is a company bought at inception, when I went through a lot of companies over a few weeks, and the funny thing here is I was convinced it was the similarly named packaging manufacturer SIG, which it turns out is not listed (though it may have been at the time in 2012). The SIG in the portfolio is a building supplies manufacturer that I vaguely recall looking at but probably not decide to buy. It seems okay but may be in need of a more thorough review. I guess it’s a good indicator of sufficient diversification.

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