Portfolio Update (20/07/19)

Lots of changes this week:

AU Portfolio

Sells

BlackWall Property Trust (ASX:BWR) - I originally bought BWR alongside BWF because I was concerned about potential conflicts of interest between the two entities. Further research has alleviated this fear.

Dicker Data Ltd (ASX:DDR) - Now trading at 30 times earnings and I think there are better places for my capital

Korvest Limited (ASX:KOV) - A poor quality cheap business with a positive outlook. I prefer the below stocks at current prices.

Buys

Advance Nanotek Ltd (ASX:ANO) - I previously held this stock and sold at around the current share price because I thought it was too expensive. I have changed my mind. Pricing for the company's zinc oxide powder formulation (Zinclear XP) is undisclosed, but an investor presentation (p4&5) from last year states that inferior competing products sell for $37.50 to $55.00 USD per kg. If ANO sells Zinclear XP at anywhere near those prices and it can come close to fulfilling its planned 2,200 tonne annual capacity then I was wrong.

Euroz Limited (ASX:EZL) - As one of its premier financial services businesses EZL's prospects are leveraged to those of WA and the current iron ore price bodes well for the state's economy. If WA does not enjoy a renaissance then returns should be satisfactory given the stock's modest valuation. Employees own a large proportion of the business and funds under management are growing nicely.

ICSGlobal Ltd (ASX:ICS) - The UK based MBC business (the sole operation of ICS) has grown revenue consistently over recent years, but group profit has been volatile when translated into Australian dollars. MBC provides medical billing services to the UK private healthcare system. I think it is a good quality business that is priced cheaply (12.8 times historical earnings) simply because of its size.

Ashley Services Group Ltd (ASX:ASH) - Labour hire and training business that was hit by the VET FEE-HELP scandal. Training currently makes a nominal contribution to group earnings and there is potential for the division to recover in coming years. The stock is priced modestly based upon the profits of Labour Hire alone. The outlook for Labour Hire, which partially specialises in engineering and technical building roles, is solid in light of the high level of infrastructure construction currently underway in Australia.

UK Portfolio

Scientific Digital Imaging plc (LON:SDI) in, City of London Investment Group PLC (LON:CLIG) out

Beeks Financial Cloud Group PLC (LON:BKS) in, Bloomsbury Publishing Plc (LON:BMY) & Alpha FX Group PLC (LON:AFX) out

Holdings:

AU Portfolio

ASX:ACF - 4.61%
ASX:AKG - 4.80%
ASX:ANO - 4.81%
ASX:ASH - 4.72%
ASX:BWF - 4.49%
ASX:CWL - 5.19%
ASX:DTL - 6.44%
ASX:EAS - 4.34%
ASX:EZL - 4.75%
ASX:FID - 5.08%
ASX:GAP - 4.82%
ASX:HIT - 5.06%
ASX:ICS - 4.77%
ASX:JYC - 4.45%
ASX:KME - 9.32%
ASX:LBL - 6.24%
ASX:LYL - 5.21%
ASX:OTW - 3.81%
ASX:WLL - 4.09%

Cash - 3.02%

UK Portfolio

LON:AFM - 4.74%
LON:ASY - 5.76%
LON:AVON - 4.17%
LON:BKS - 4.74%
LON:CRL - 11.68%
LON:D4T4 - 6.29%
LON:EYE - 5.20%
LON:JDG - 5.57%
LON:OXB - 4.65%
LON:RFX - 5.05%
LON:SDI - 4.33%
LON:SPE - 8.61%
LON:VTC - 4.07%
LON:WINK - 4.48%
LON:WJG - 4.05%
LON:XPP - 4.19%

Cash - 12.44%

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