Hot on the heels of our successful reduction of our GKN holding (with the sale yesterday on of our our two previous purchases) I wanted to open the debate as to whether we should look at something similar with United Utilities. Like GNK we doubled up in terms of purchases and both were initially up approximately 15+% for a short period but have languished in the negative for some time now. At some points both tranches have been down over 20%. At present our first block is down by only 4% which is the smallest it has been for a very long time.
Unless we have a very clear feeling that these shares are going to rocket then if we can reduce our holding (or exit altogether perhaps?) for a break even amount I would potentially be interested. The reasoning being that we have held these for ages, as far as I can see they were not designated as particularly a long-term income generating share and are not currently proving to be that even they were. Also and possibly most importantly I thinks some new purchases might stimulate a bit more interest and enthusiasm amongst members. Whilst I still actively follow developments, chip into discussions and am very keen to see the club succeed there is nothing like some actual buying and selling to feel a bit a more engaged. I am not proposing at all that we just start buying and selling for the sake of it but having had to pay out for members leaving from our funds it has curtailed our ability to do much pro-actively on this front recently.
Also I think some refinement of our portfolio might help us move towards the strategy that very well presented by Gardinan, which we all agreed, with a mixture of income generators and riskier shares.
As an aside whatever we do/do not about United Utilities I still think it would be good if our Current Investment Report could be coded in some way (e.g. colour coded, or an extra column perhaps) so we can easily identify what shares are 'long-term income generators', 'risky', functional (e.g Share Group - i.e. not an investment as such but a mean to an ends to get a better deal on the share platform); etc. They might not be exactly the right descriptors but hopefully you get the general point I making