The disposals realised a small overall profit and came after a period of general stock-market weakness as a result of Ukraine uncertainties and concerns over financial weaknesses in the Chinese economy. We believe the three shares now look undervalued on all published information, but are aware of the potential for unpleasant surprises among smaller companies and will await further trading news before deciding whether to re-invest.
In the meantime, we refreshed the portfolios with a further notional investment in Glasgow-based Smart Metering Systems and new purchases of catalogue shopping group N Brown and the Close Brothers banking concern. We have set out usual stop/loss levels, 10% below current prices, at which we advise readers to consider selling on any setback.
Our 2014 portfolio was the best of a disappointing bunch last week, limiting its overall fall to just 0.5%, despite the loss of both Infinis and Iomart. The others recorded loss of around 2% after particular weakness in Optos and brewers Greene King and Fuller Smith & Turner on worries about higher grain prices.