Some portfolio turnover
I spent much of the last couple of days doing three main things - firstly, deciding what to do with Morson and co, current constituents of the portfolio after the disappointing situation I blogged about last Friday. Secondly, in light of that, cleaning up all the spreadsheets I use for tracking my performance and managing my investments - particularly as it's coming up to this blog's first year anniversary and, as such, it'll be good to look back with some clarity over my investment decisions. I did create this to learn, after all! And thirdly - well, it sort of spoils my writer's suspense over the first point - but my dilemma was deciding what to do with both the portfolio's current residual cash, and any cash that might be realised from... I don't know... selling an investment, for instance.
The Morson Question
It probably won't surprise readers to hear that I sold Morson from my virtual portfolio today, then. The price I sold at, 47.5p, sits close enough to the bid price of 50p. I have absolutely no experience in the planned cessation of trading (if they manage the 75%) or almost complete market wipeout (if they don't) in shares like this, which is the main reason behind selling, since my uninitiated guessing would have said the process would wrap itself up fairly quickly - and, since the risk of the family pulling out appears to be basically nil, those managing to buy shares at 47.5p are doing rather well. As I say, though, I don't like guess work, so I'll watch how the process proceeds and how quickly shareholders get their money out - and take the information forward if the scenario ever pops up again. I suppose the situation is quite unusual in the probabilities involved, given that it's an MBO by management with a significant interest already, irrevocable undertakings for more than 50% of the share capital, and financing apparently already in place. Maybe those interested in arbitrage will make some money here! (more…)