RE: No Sale and Now Low Visibility28 Aug 2023 13:17
Certainly Seamus, I was lucky with ME Group, I’m part of a small investment club, there was talk in the press of a post covid surge in passport applications and travel, from memory we found that there had been between 2 and 5 million passports that had not been renewed during covid so, we looked at companies linked to the industry who had suffered during lockdowns. I think it was still called Photo Me International at the time, they own all those photo booths in supermarkets Etc. The share price had bombed but seemed a good bet coming out of covid. 2-5 million catch up applications plus returning to normal business levels and the majority owner of photo booths for passport photos. They were also starting to move into providing washer dryer machines in launderettes, so we also looked at the percentage of rental properties providing white goods and stuff like that. Now up 80.29 % and back to paying a reasonable divi twice a year. It has been one of our best results.
At the moment……
Some of us are researching builders who still pay dividends and are still land banking, as inflation starts to fall and interest rates eventually follow they could be a good long term bet with dividend income in the meantime.
Each member researches one share per month and reports back to the investment club, we look at each members research and pick the share(s) we think will do well. my next research project is Pan African Resources. With independent sustainable power sources, they look to have possibly found a solution to the load shedding issue, which is a major problem in SA at the moment and would give them a price advantage as they wouldn’t be tied to grid prices, but I’ve only just started researching them in preparation for our next meeting.
Don’t know if anyone else belongs to an investment club? Ours gives us 6 well researched companies a month for the time it takes each of us to research one company.
Sorry if that’s a bit lengthy.