OUR share tips eased past another barrier last week when our 2017 portfolio notched up notional profits of more than £1,000 for the first time.
The figure was achieved despite a sharp fall in the share price of high-flying technology giant Micro Focus following disappointing trading news from its acquisition target at the Hewlett Packard software operations.
Fortunately, the Micro Focus performance—which saw nearly £100 wiped off our notional investment—was comfortably counter-balanced by gains elsewhere so that the total value of the portfolio was showing an increase of 0.6 per cent when we carried out our usual review on Wednesday morning.
Scents and essences group Treatt and internet warehouses specialist SEGRO caught the eye with their shares both hitting fresh peaks but we were equally pleased with a recovery in the price of shares of Clydesdale Bank owner CYBG which finally broke into profit on hopes of further consolidation in the finance sector.
Most of our other recommendations also moved to higher ground although the 2016 selections went into reverse with a 1.4 per cent fall after profit-taking in recent strong performers CVS, Low & Bonar and Merlin.
In contrast, the 2015 list sported a rise of 1.6 per cent over the week and the 2014 selections recorded an overall gain of just short of 1.0 per cent.
Particularly good rises were shown by the Anglo-Dutch wast treatment group Renewi (right sp) and Harry Potter publisher Bloomsbury which are both due to report annual results later this week while aggregates supplier Breedon enjoyed a boost from the recent good building weather across much of the UK.
The overall performance persuaded us to dip into reserves to make a notional purchase of shares in Moodiesburn-based sausage skins specialist Devro which are being added to the 2014 portfolio.
We recognise that directors are having to work hard to get debt down and increase efficiencies after a tough 2016 but their task is eased by the company’s strong cash flow and the fact that the group’s ambitious investment programme is nearing an end.
Nervous shareholders can also take comfort from Devro’s extensive customer base in more than 100 overseas countries.
We have set our usual stop loss target, some 10 per cent below the current share price, at which we advise followers to consider selling on any major reversal.
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