I trust you enjoyed the festive break and are now raring to do battle with the market for another twelve months!
This first Blog post of 2016 provides a short ‘year-in-review’ of each of my current portfolio holdings.
As I mentioned at the start of 2015, I find writing such reviews extremely useful — not least because it encourages me to double-check my investment logic to ensure I am still invested for all the right reasons!
*** EDIT: 16 MAR 2015: I HAVE SINCE SOLD THIS SHARE. PLEASE READ THE COMMENT SECTION AT THE END OF THE POST ***
SeaEnergy (LON: SEA) is an unusual holding in my portfolio for two reasons.
First, I found the idea from a bulletin board rather than through my own market trawls. Second, the business does not offer the time-tested management that I prefer to see running my investments.
So there could be danger ahead here!
But drawing me to this £20m AIM business is an attractive software subsidiary that offers high margins, great cash flow, blue-chip clientele, recurring revenues and respectable growth prospects.
In the mix also are a couple of start-up divisions that I’m hopeful can soon reach breakeven, as well as a stake in a quoted oil small-cap that might one day deliver useful upside. Indeed, my valuation sums indicate the group’s software ‘gem’ could be valued at just 7.5 times profits. Continue reading →