Portfolio Update (13/07/19)

I purchased Alpha Financial Markets Consulting PLC (LON:AFM) for the UK portfolio this week.

In the AU portfolio I added Acrow Formwork and Construction Services Ltd (ASX:ACF). ACF hires out formwork and scaffolding equipment used in construction and civil engineering projects. The company has a presence in all states in Australia except the Northern Territory. Management is expanding the more technically demanding formwork side of the business which has higher gross margins. Formwork is leveraged to the mining, infrastructure and commercial construction sectors whereas scaffolding is more commoditised and dependent on residential building activity. Demand for formwork is booming whereas price cuts are needed to shift scaffolding right now. Directors have been buying shares on market in recent months and the stock trades on a single digit forward price-to-earnings multiple. ACF is not a pretty business, but it is sufficiently cheap for me to own some.

I also sold my gold ETF (ASX:GOLD). I remain bullish on gold and prefer it to cash, but would rather own attractively priced equities. I am in the process of acquiring a stock with the proceeds.

AU Portfolio

ASX:ACF - 4.74%
ASX:AKG - 4.86%
ASX:BWF - 4.26%
ASX:BWR - 4.31%
ASX:CWL - 5.19%
ASX:DDR - 5.70%
ASX:DTL - 6.23%
ASX:EAS - 4.21%
ASX:FID - 5.30%
ASX:GAP - 4.60%
ASX:HIT - 4.70%
ASX:JYC - 4.54%
ASX:KME - 9.37%
ASX:KOV - 4.62%
ASX:LBL - 6.45%
ASX:LYL - 5.08%
ASX:OTW - 3.97%
ASX:WLL - 4.26%

Cash - 7.62%

UK Portfolio

LON:AFM - 4.77%
LON:AFX - 4.37%
LON:ASY - 5.68%
LON:AVON - 4.46%
LON:BMY - 4.43%
LON:CLIG - 4.58%
LON:CRL - 11.82%
LON:D4T4 - 6.18%
LON:EUSP - 7.71%
LON:EYE - 4.90%
LON:JDG - 5.45%
LON:OXB - 4.56%
LON:RFX - 5.05%
LON:SPE - 8.32%
LON:VTC - 4.07%
LON:WINK - 4.41%
LON:WJG - 3.98%
LON:XPP - 4.19%

Cash - 1.06%

Comments

  1. Just something to watch with ACF is that a lot of industry is moving to rope access from scaffold for safety management reasons. Might be worth seeing if they are developing expertise and resources in rope work to compensate.

    ReplyDelete
    Replies
    1. thanks Galumay, the scaffold business is becoming less important as they increasingly focus on formwork but will keep an eye on it

      Delete
    2. Yes, I had a bit more of a look at the ARs and I see they are moving away from scaffold and focusing on the formwork.

      Delete

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