CWK.L (Cranswick) gets added to the "sticky situations" fund. Mucho kudos to ExpectingValue for doing a lot of the number crunching and general descriptive work (http://bit.ly/nhQtpm
). Looks like a solid company. Comes off well on Magic formula with ROC of 31% and EY of 13.6%. Brewin Dolphin downgrades it from add to hold, which I take as a good contrarian indicator. Investors are concerned about the market backdrop and infaltion. Sales growth petered out in 2011Q1.
Shares dropped about 12% earlier this month on the bad news.
Directors own about £2.6m of stock, against a market cap of £307m. Ask price 644p.
Time to take a punt. Software still isn't in place to demonstrate gains (or losses!), so stay tuned to find out how the portfolio is doing. It's very early days for the portfolio anyway, so there's nothing much to report. Pace seems to be doing well so far (up about 5% since entry) . SHG is about breakeven - the shares have mostly been up, but there's a big spread on the prices, so I use the ask price to determine my entry point. So I'm not cheating!