WHAT YOU GAIN AS A MEMBER
John's Investment Chronicle started in January 2012 so that other investors could observe how I manage my investment portfolio, the JIC Portfolio. In July 2020, I added a second portfolio, the JIC Funds' Portfolio, which only invests in funds and replicates Mrs R's SIPP.
There is complete transparency. You can see both portfolios and all transactions. There is an explanation of the thought process behind every trade in the investment diary. Members are notified of every trade within 15 minutes. The aim is to provide food for thought to more experienced investors and to help those new to investment. There are plenty of tipsters who will remind you of the good ones and quietly forget the not so good. John's Investment Chronicle does not have that luxury as the portfolios are there for you to see, backed with real money. I have to confront my mistakes and deal with them; there is no hiding place!
Above all, this is a true account of the trials and tribulations of a private investor!
By becoming a member of John's Investment Chronicle you will gain access to the members' area which includes:
The Investment Diary with regular and timely blog posts, a weekend roundup as well as monthly reviews.
Becoming a member also grants you access to the JIC Funds Portfolio, JIC Portfolio as well as JIC Funds Portfolio Transactions and JIC Portfolio Funds Transactions, highlighted below.
Once you have subscribed, if JICUK does not meet your requirements you can cancel your membership within 30 days and receive a full refund!
JIC Funds' Portfolio
The JIC Funds' portfolio started life as the JIC Top 10 Portfolio in August 2014, with £50,000 cash. In June 2020, I changed it to a “funds only” portfolio. It invests only in funds, (principally investments trusts and ETFs).
It aims to achieve long term growth, and therefore mostly holds funds exposed to equity markets. Diversification comes from exposure to geographical regions and themes. It aims to be a “do little portfolio” with trading kept to a minimum. Hopefully, it will achieve a reasonable compound growth rate over the next five years and one better than the FTSE All-World (Total Return) GBP Index.
JIC Funds Portfolio Transactions & JIC Portfolio Transactions
I mirror the transactions I make in my SIPP and ISA in the “JIC” Portfolio which started, with £151,110 cash, on 1st January 2012
The first trade you see is for the JIC Portfolio in order to receive my contract note. I update the transactions table below and post my diary entry within 15 minutes of trading. After that, I submit any further orders I have.
Dividends are included at the time a stock goes ex-dividend
By becoming a member you gain access to regular diary entries. The example below was published before the market opened on 7th July, on the news that K3 Capital had made two acquisitions.
K3 Capital: (K3C.L, AIM All-Share: Market Cap £233m, 337p, 6.1% of JIC Portfolio, Medium Risk/High Reward, target 5.0%)
Conclusion: The acquisitions make sense in that they fit into K3’s strategy of providing business services to UK SMEs. It expands its offering into new sectors. K3 has grown both organically and through acquisition. It looks like they are paying a full price, but they are high margin businesses and sensibly there is a four-year earn-out and existing management are tied in and well incentivised. I see no reason not to back CEO and founder, John Rigby in making these acquisitions as thus far, his previous deals have added considerable shareholder value. He says today’s acquisitions will be immediately earnings enhancing. On 15th June it issued a positive trading update for the year just ended 31st May. It is valued at 21.0x May 2021 earnings forecasts, for 41% growth. In a note this morning, Finncap is forecasting 20% growth in the current year taking the PE ratio to May 2022 down to 17.1x and a further 22% growth the following year taking the PE ratio down to 14.0x. Forecast dividends lead to a yield of 2.7% for the year just ended, rising to 3.6% in the current year and 4.6% next year. For what it’s worth SimplyWallSt has it trading 50% below its estimate of fair value. If I didn’t own it I would be buying and am happy to stick with my Medium Risk/High reward rating, (pointing to a 5.0% position). I’m at 6.1% and will let it run. Happy Holder!
K3C has announced the acquisition of Knight Corporate Finance Group (KCFG) and Knight R&D Limited (KRD).
It is also raising £10.0m through the placing of 2,941,934 new shares at 340p to partly pay for the acquisitions.
KCFG is a specialist mergers and acquisition advisory firm within the telecoms and technology sectors. In the year ended 31st March 2021, KCFG generated revenue of £1.71m and EBITDA of £0.78m. the consideration is up to £8.6m, with £3.3m initially through a mix of cash and shares. There are then earnouts for each of the years ending May 2022, 2023, 2024 and 2025. The first year is 60% cash and 40% shares, the second is 70% cash and 30% shares and so on.
KRD is a specialist tax advisory firm serving UK SMEs. For the year ended 30th September 2020, KRD generated revenue of £3.16m and EBITDA of £1.98m. Consideration will be up to £16.3m comprising an initial consideration of £9.3m (£7.3m cash and £2.0m shares). There will also be an earnout of approx. £4.0m payable as 60% cash and 40% shares over the next four years.
Both acquisitions are expected to be immediately earnings enhancing.