The stamp collection has been mostly left alone since the last update, but let’s catch up with the few changes.
Lifeline Scientific, a maker of organ transplant transport kit, was taken over as the business was starting to become profitable. The price was decent if not spectacular, but the return from the distressed buy price is pretty satisfying
Tyratech stock class rotation
Tyratech is one of the more speculative stocks in the portfolio, whose product seem to be slowly on its way to some success. The thesis here is that the price is depressed by enough investors being sick of waiting. Having gone down since I bought, it was ripe for re-weighting up to the portfolio standard weight. The growing gap between the two classes of shares represented another opportunity: despite the big spread, the ask of the restricted share (which gets automatically converted to normal shares within a year or so) was well below the bid of the normal share, so I sold all my normal shares and replaced them with restricted shares. The double share class is due to some obscure US listing rules (it’s a US company listed on AIM) that seem harmless to anyone willing to wait for the conversion.
Kromek was added to on the occasion of a fundraising, allegedly but reasonably plausibly to make the balance sheet bullet-proof for institutional customers. They also seem to be slowly on your way. I invested too early here, which is now less likely to happen due to the introduction of the minimum net income rule (> £1m).
Spaces without people
Another reweigthing was Space & People, which has not been doing too well but seems priced for bankruptcy, which seems unlikely. A modest recovery should provide a handsome return.
I finally threw the towel on speculative Slovenian gas explorer Ascent Resources on news of “first gas” being very close, because I expect operations to encounter a series of possibly price-sinking difficulties.
I have also sold out of Minoan, whose management I’ve lost trust in and which is seemingly perpetually loss making (already breaking two of the portfolio rules). Even if the Crete project works out in the end, they’ll likely manage to squander the proceeds.
Last stock being waved good-bye is DX Group, a recovery situation which seems to have become hopeless. It would have been better to run the legacy business in run-down mode and stop trying to transform into something else, a common sin of legacy businesses.
Three stocks were acquired, matching our rule sets and looking like they’re on an interesting path at a reasonable price: Scientific Digital Imaging (scientific instruments), Elecosoft (architecture and construction software) and Airea (carpet manufacturing).
Special case: solar lawyers
As a special situation, PV Crystalox was acquired, because of the option value based on the possibility of a favourable settlement of a contract conflict in their favour with a blue chip customer, which seemed to be excessively discounted by the market.