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The model portfolio is currently 41% cash.
Most of it came from selling Ashtead after Ember’s bid. In the last update I said I’d started shopping, so this post is the shopping list.
I like keeping the watchlist short. These are the names I’ll write up next, and the ones the cash is most likely to go to. Some will make it into the portfolio. Some will drop off.
Every company here has had good news in the last three months: record results, a big contract, an acquisition, guidance going up. Some of the share prices have followed and some haven’t.
The rule for buying stays the same as for adds.
A new idea starts small, and it only gets more money once its results confirm the thesis. For most of these names, the next set of results is due in the next few weeks.
Here are the 10 on it today:
Subsea tinycap. Revenue up by half, and its first contract in a new country.
Royalty toll booth. Record royalties, wider margins, and a share price that’s gone nowhere since August.
Cockpit avionics. Margins up 16 points, with the shares well off their high.
Grid software. Record revenue, and a big quarter due this week.
Hospital consumables. Margins up 20 points, profits flipping positive, net cash.
Odour control. A record quarter. The shares jumped on the print.
Serial acquirer in education. A target beaten, and its first ever earnings forecast.
Transplant logistics. Record free cash flow and an activist on the register.
Defence circuit boards. Record backlog, and the debt paid off.
Disaster-safety software in Japan. A 40%+ operating margin, and guidance raised.
Let’s get into it…