23 October 2015
By Maynard Paton
Today I’m revealing my latest share investment.
The company in question is Castings (CGS), a long-established iron castings and machining group that’s based in the Midlands.
You may recall that, back in September, I added Castings to my watch list.
Well, after mulling over that write-up, I then bought in at an average price of 426p including all costs. The bid price is now 440p and the holding currently represents about 8% of my portfolio.
When I invested, I felt this £188m firm offered many traits of a respectable investment.
Important attractions for me included a durable dividend, an asset-flush balance sheet, improving productivity, good-value management and an upbeat immediate outlook. What’s more, a possible P/E of 11 suggested the shares were priced quite modestly.
However, I recognised CGS was by no means a one-way bet. Obvious risks include serving a small number of large customers and a recent profit history that has seen its ups and downs.