So, here we go, with the “Bombed Out but Bouncing Back” virtual portfolio, rebooted.
Let’s just call it the “Bombed Out” portfolio this time, shall we?
As before, we’ll start with £10,000 in virtual money, and we’ll play fair by buying at the “ask” price, selling at the “bid” price and coughing up £15 in dealing fees.
READ Dead cats and falling knives ... the reboot of the "Bombed Out" virtual portfolio
The stock filter coughed up five stocks, and it is a spicy selection, with three of them being companies focused on India, while the first one counts Mexico as one of its major markets.
The founding five stocks are:
International Personal Finance PLC (LON:IPF)
Once part of Provident Financial, the consumer credit company has been rocked by tougher legislation in Poland and hit by restructuring costs related to its Mexican business.
The shares have fallen 44% over the last year, leading to the finance company losing its place in the FTSE 250.
Annoyingly, had I published this article on Tuesday as I had hoped to, I would have got the shares some 7% cheaper because they spiked on Wednesday on the release of half-year results.
On the other hand, it is comforting to see the group increase profits by £10mln to £43.0mln, albeit with £6.7mln of foreign exchange gains lending a helping hand.
Some clouds remain on the horizon, but chief executive officer Gerard Ryan has evidently been whistling “Always look on the bright side of life” to himself.
“We continue to engage with the Polish Ministry of Justice concerning proposed changes to the total cost of credit regulations. While we expect the regulatory landscape in Europe to remain challenging, we continue to believe our Mexico home credit business and IPF Digital offer significant growth opportunities for the group," he said.
Shares bought: 1,045 @ 191.44p
NCC Group PLC (LON:NCC)
The cyber-security company’s ‘buy-and-build’ strategy has come unstuck, and while it is undoubtedly in a high-growth sector, it is also one where the competition is becoming fierce.
I interviewed the company management several years ago and the chairman – now departed – said the company was involved in “an arms race” with the hackers, crackers and cyber-criminals out there, but it was also involved in an arms race with its competitors and the trading performance suggests it is a race in which it has been losing ground – and customers.
The shares are down 41% over the last year but up 43% over the last three months, as investors backed the new management team and its revamped strategy.
Berenberg reckons investors may have got on board too soon and that the best thing to do is to wait to see whether the new strategy takes hold. The Relative Strength Index reading also suggests the shares are approaching overbought territory, so this is a reluctant purchase based purely on the concept of "computer says yes"
READ Analyst downgrade suggests NCC recovery story has been overblown
Shares purchased: 1,020 @ 196.47p
Mytrah Energy Ltd (LON:MYT)
The Indian power generator was one of the last companies to enter the original “Bombed Out” portfolio before we deep-sixed the fund, and was a rare success, albeit a modest one.
The shares are still down 43% over the last year and 24% over the last six months, but are up 11% over the last month, with most of that gain coming this week after Monday’s trading update.
READ Mytrah Energy performance boosted by diversification as new solar comes online
Shares purchased: 6,600 @ 30.23p
Mercantile Ports & Logistics Ltd (LON:MPL)
I must confess I have never heard of this mob, either under its current name or its previous incarnation as SKIL Ports & Logistics. It’s another company focused on India. It’s developing a port and logistics facility in Mumbai.
The shares halved in September when it dawned on the board it would need an estimated £36mln extra to complete construction of the facility.
Over the last year the shares are down 83%, making it the most bombed out of the stocks in the portfolio, but despite rising 37% this week the RSI value is 55.6, which is lower than IPF (67.5), NCC (borderline overbought territory) and Mytrah (59.9).
Shares purchased: 37,900 @ 5.29p
Koovs PLC (LON:KOOV)
I’ll be popping out for a “ruby”* at this rate, as this is the third India-focused company in the portfolio.
Koovs describes itself as “the fashion-forward business focused on the young Indian e-commerce market”, while lazy journalists like me usually describe it as India’s answer to ASOS.
The shares have halved over the last year, with the rot setting in almost exactly a year ago on the release of full-year results, against a background of fund-raising efforts.
The shares are up 14% over the last month, with the company having recently announced it would pull the trigger on its planned £18.9mln issue of secured convertible loan notes.
Shares purchased: 4,830 @ 41.31p
Company
No. of shares
Total cost
Average price paid
Current bid price
Current value
Profit/ loss £
Profit/ loss %
International Personal Finance
1.045
£2,001
191.44p
1.8775p
£1,962
-£39
-1.9%
4,830
£1,995
41.31p
39p
£1,884
-£112
-5.6%
Mercantile Port
37,900
£2,005
5.29p
5p
£1,895
-£110
-5.5%
Mytrah Energy
6,600
£1,995
30.23p
29p
£1,914
-£81
-4.1%
1,020
£2,004
196.47p
194.75p
£1,986
-£18
-0.9%
- Cash: £0
- Total value of original £10k portfolio: £9,642
- Profit/loss on closed trades and dividends: 0
- Unrealised profit on current holdings: -£358
- Total profit/loss: -£358
* Ruby (Murray) = curry