Sale of Umeco (UMC)

Just one sale today. Umeco (UMC), the specialist engineering firm, at 547p

I bought Umeco on 3rd August 2011 for 373p
The share price shot up on 12th April 2012 on the news that the company had received an offer from Cytec Industries’ subsidiary Cytec UK Holdings, for the entire company.

Cytec and Umeco agreed that Umeco’s shareholders will be paid 550p in cash per share.

I’m not sure when this deal is due to be completed and shareholders paid, but as I’m selling off smaller holdings I decided to cash in today, despite the share price being 3p below the price shareholders will receive if and when the takeover goes ahead.

The sale price of 547p represents a near 47% profit.

More share sales

Sold more shares today, including Dixons Retail, Howden Joinery Group, National Grid, Telford Homes, Rightmove, Dot digital Group, Hammerson, Lloyds Banking Group and Magnolia Petroleum.

Most were quite small holdings, but I hesitated before selling National Grid (NG.). While these should have been in the High Yield Portfolio (HYP) they were in the general shares portfolio. Once the sale proceeds have come through I may re-invest in NG. in the HYP.

Portfolio reorganisation continues

As I wrote last week in “Cleaning up the Amateur Investor Portfolio“, I’ve decided to tidy up the Amateur Investor portfolio.

While I said that this was because the A.I. portfolio of over 200 holdings was proving to be too difficult to keep a close eye on, another consideration is that the 12 month anniversary of subscribing to The Share Centre’s unlimited share dealing option is approaching (The deed is done. I’m now a “Premium Trader”!)

This trading option costs £3000 per annum (£2500 + VAT) and allows frequent traders to trade as often as they like without additional trading fees. So anyone trading at least once a day will probably be better off on the Premium Trading option.

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Cleaning up the Amateur Investor Portfolio

Since staring my journey as the Amateur Investor last year I have managed to accumulate around 200 different holdings!

Far too many to be able to keep an eye on all of the shares, so I’ve decided to weed out some of the smaller holdings in my general portfolio (leaving the High Yield Portfolio to quietly carry on earning income).

To this effect I have sold 2 holdings today, Intertek Group (ITRK) and Xchanging (XCH).

Intertek was purchased on 2nd August 2011 at 2,022p each (including fees). Today’s selling price was 2,682p for a nice profit of 660p per share, or just over 32%.

I bought two lots of Xchanging, one at the beginning of August 2011 at 97p per share and another just before Christmas 2011 at 64p per share – an average of 80.5p per share. Today’s selling price was 101p per share, a profit of 20.5p per share – or just over 25%.

More selling is planned for the coming days and weeks…


The dividends are coming in thick and fast

A couple of weeks ago I was listening to a Motley Fool podcast and the host, David Kuo, mentioned that he liked this time of year as many of the companies he holds shares in pay dividends.

He wasn’t wrong.

It seems that every day I look at the cash element of my share dealing account and see another dividend payment has boosted the balance.

In the last 10 days I have received dividend payments from the likes of Legal & General, Prudential, RSA, Capita, BBA Aviation, Barclays and Standard Life. Today it was the turn of Admiral, BAE Systems, International Personal Finance, Weir Group and ITV.

So some of this dividend income was put back into shares today.

The Admiral Group dividend was used to buy more Admiral shares and reduce my average buying price to 1,291p too.

Other purchases were LLPC (LloydsTSB 9.25% Non-cum Pref Shares), Clarke T. (CTO), Polo Resources, PPHE Hotel Group (tipped in today’s Investors Chronicle magazine), and LLOY (LloydsTSB).

Markets around the world continued to decline today. But as income investing becomes a more and more dominant theme in the Amateur Investor portfolio, the daily ups and downs become less of a concern when there’s a constant stream of dividend payments hitting my dealing account.

Have a happy Jubilee weekend.