Portfolio Update (27/07/19)

AU Portfolio

I switched Data#3 Limited (ASX:DTL) for UCW Ltd (ASX:UCW).

ASX:ACF - 4.74%
ASX:AKG - 5.18%
ASX:ANO - 4.67%
ASX:ASH - 4.88%
ASX:BWF - 4.46%
ASX:CWL - 4.77%
ASX:EAS - 4.29%
ASX:EZL - 4.68%
ASX:FID - 5.16%
ASX:GAP - 4.60%
ASX:HIT - 5.23%
ASX:ICS - 4.81%
ASX:JYC - 4.38%
ASX:KME - 9.36%
ASX:LBL - 6.29%
ASX:LYL - 5.19%
ASX:OTW - 3.77%
ASX:UCW - 4.96%
ASX:WLL - 4.09%

Cash - 4.48%

Overall, not the best week. Positive updates from AKG and WLL were offset by disappointment from GAP. I still like GAP because it continues to grow sales in the US (17% up for the year). Meanwhile, conditions in Australia were tough and so group results were modestly down compared to last year. The CFO resigned following the completion of the accounting audit.

UK Portfolio

I bought Bango plc (LON:BGO) and Morgan Sindall Group PLC (LON:MGNS) earlier in the week. I also sold Sopheon Plc (LON:SPE) in order to buy Character Group plc (LON:CCT).

Toy maker Character Group has reported relatively flat earnings over the past few years during which time it has contended with a weakening pound. The company's costs are mainly in US dollars whilst the majority of sales are to the UK. It has also been impacted by the failure of Toys R Us. I suspect the company will perform better in the future assuming conditions normalise. The stock trades on a forward price to earnings multiple of 11 and is highly cash generative.

LON:AFM - 4.81%
LON:ASY - 5.97%
LON:AVON - 4.25%
LON:BKS - 5.85%
LON:BGO - 5.51%
LON:CCT - 4.85%
LON:CRL - 11.43%
LON:D4T4 - 6.10%
LON:EYE - 5.29%
LON:JDG - 5.57%
LON:MGNS - 4.86%
LON:OXB - 4.82%
LON:RFX - 5.32%
LON:SDI - 4.64%
LON:VTC - 4.33%
LON:WINK - 4.56%
LON:WJG - 4.16%
LON:XPP - 4.29%

Cash - 3.40%

A similar story to the AU portfolio in terms of news with positive updates from JDG and BKS and a poor one from SPE.

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