Share club valuation @ 5 May 2018

richard@imutual
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Share club valuation @ 5 May 2018

Post by richard@imutual » Sat May 05 2018 11:17am

Here are the figures for the Cashback Investment Club's latest valuation, based on our investments and cash holdings as at 5 May

Since the last valuation on 15 Apr, the club's unit price has increased from £0.8099 to £0.8298, a change of 2.46%. See Unit price calculations

Members have paid a further £40 into the club since 15 Apr, and these have been converted to units at the new price of £0.8298. You can see a history of your own payments here

We currently have 16 members who have made 328 payments into the club totalling £6,506.20. The total value of our current assets is £5,600.83. Our list of our past investment decisions can be found here, and valuations of our current holdings (based on market mid-prices) can be viewed here

Our current cash holdings consist of £35.49 held in our Co-op bank account, + a further £1,339.49 held in our Share Centre dealing account.

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Re: Share club valuation @ 5 May 2018

Post by kevinchess1 » Sat May 05 2018 2:10pm

So the £40 is split between the 2 funds?
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Re: Share club valuation @ 5 May 2018

Post by BeautifulSunshine » Sat May 05 2018 3:41pm

kevinchess1 wrote:So the £40 is split between the 2 funds?
Good question, or would it be member-defined when they requested the redemption into the imutual CIC?
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Re: Share club valuation @ 5 May 2018

Post by Beachboy » Sat May 05 2018 4:07pm

Neither - I think there is still one fund as far as I have followed things:
garindan wrote:
richard@imutual wrote:Well I think (and garindan may correct me) that we still effectively have one fund and one monthly valuation, and your payments continue to be treated the same way. It's just that we have a mechanism for introducing some higher-risk small cap shares into our portfolio.
You got it. It shouldn't need any major changes to reporting, which is good news I think. The only difference will be dividing up the investment funds into two "pots", if you like, so we know what is available to invest in each.
richard@imutual wrote:I still favour two separate funds because it allows each individual the freedom to choose their risk profile, along with the other elements of my original proposal
I understand this. I think a year of trying our luck in both investment camps without the need for any major reporting changes will give us the confidence to make further decisions in the Club. This of course might be a movement to two funds but then again it might only be one fund and that could be constituted in either of the ways we are going to trial. At least then we'll hopefully have a better idea of where we want to be as a Club :thumbup:
richard@imutual wrote:I think this is a well thought out compromise by our chairman and I'm happy to support it. Great leadership, Sir :)
Why thank you my esteemed fellow :lol:
richard@imutual wrote:There are some details that we'll need to iron out. Setting an initial stop loss is a good idea, but I'm slightly concerned about unduly limiting our gains by having predetermined exit prices and cashing in on the winners too early. But that can be the subject of a separate thread
For sure. The latter part is really the discussion point, as you rightly mention needs to be ironed out. One thing that strikes me in a number of discussions is ensuring we all understand what a "stop:sell" and a "tracking stop:loss" is. Quick definition below:

stop:sell is used to cash in on winners at a predetermined price point. This locks in the gain.

tracking stop:loss is used to track the price of a winner (not a loser as the loss part of the term might suggest) to try and optimise a gain through not selling too early. This is a little more complex! Essentially it works like this:
  • - set a share price (in pence) as a trigger point for the tracker to kick in
  • - the tracker then records the peak price of the share (in pence) from then onward
  • - set a buffer value (in pence) that will be used to control the stop:loss sale, when conditions are met
  • - the buffer is the amount that you are happy for the share price to fall in value from the peak price before a sale is made to lock in a gain and stop a downward trajectory
  • - if the share price falls from the peak price (recorded since triggering) by the buffer value the share is sold
  • - if the share price continues to rise the peak price increases and, therefore, so does the price point for a sale, guarding against an early exit
Hopefully that helps explain the difference. There is nothing to stop a share having both a stop:sell and a tracking stop:loss set. As with most things, there is normally a price someone will sell out for... Missing out on that sale might be a mistake as the share could open 20% lower the next day etc...

So this is what would need to be discussed and a view taken upon :thumbup:
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Re: Share club valuation @ 5 May 2018

Post by kevinchess1 » Sat May 05 2018 4:18pm

So is it £20 into each pot then?
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Re: Share club valuation @ 5 May 2018

Post by garindan » Fri May 11 2018 8:33am

kevinchess1 wrote:So is it £20 into each pot then?
Yes.
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