DIY-Investors Portfolios (Transactions)

Portfolio Changes

I've recently made some changes to the actively managed portfolios and so I thought I'd post a mid-month update.

UK Coal

The first change was the sale of UK Coal (UKC) from both the 5 stock and 10 stock actively managed portfolios. I've shown the chart below...

The red arrows, marked on the graph, serve to illustrate the following points:

• The 50 day moving average is in a decline, with the price seemingly unable to break above it (apart from a day or two at the beginning of May).
• The OBV has been moving steadily downwards since the Spring.
• The AD indicators are still registering a downtrend and this is increasing (solid line rising).

Results

The recent UKC H1 results (released Friday 10th August 2012), showed a return to form for the Company (a loss!). Notwithstanding the apparent tangible book value, the news on re-structuring gives little hope for an early resolution or indeed that there will be much left for shareholders. Either way, the likely delay and regulatory approval made me decide that there are better places to invest our funds (albeit virtual funds in this case). The lesson here is clear - don't ignore the Technical Analysis! I sold both holdings at 6.3p

Purchases

I have recently started to become increasingly bullish in my views about the automotive retailers/distributors, as you probably gathered from my recent broadcasts and Blog posts. I have therefore re-invested the proceeds into Pendragon (LSE:PDG) and Vertu Motors (AIM: VTU) - the mystery company that I posed the question about during the TV Broadcast on 7th August. Full details of the purchases will follow in the next internet TV Broadcast on 5th September at 8pm.