ABDP sold

I have sold my holding in AB Dynamics for a 24% profit. I have used the proceeds to add to a number of existing holdings. 


AB Dynamics price has dipped after its results, breaking its short term uptrend. This is apparently due to the revelation that its share option scheme could be a quite significant drag on profits going forward. I’m not sure exactly to what extent this is the case but reducing this half year of profit by 1/3 is apparently quite significant. The outlook for AB Dynamics still looks very rosy otherwise, with a strong order book and good progress with investment in a new factory boding well for the future.

Overall, I am little concerned that the share price may be held back for some time. I might have given it a bit longer to see whether the price would bounce back but I think I may be better served by adding to some of my other holdings to increase portfolio concentration. Quite a few are looking promising at the moment. I can always reinvest here at a later date.

I have reinvested the proceeds into a number of holdings:

  • Boohoo, taking it to 9%. Boohoo has today published excellent results, importantly with a bullish outlook for further growth. Earnings forecasts look extremely conservative and consequently my only concern about Boohoo, its high valuation, appears unwarranted. I have decided to take advantage of the temporary dip following publication of these results, apparently due to profit taking.
  • XP Power, taking it to 5.2%. XP Power has recently updated that it is trading significantly ahead of expectations and I believe the share price is still adjusting to reflect this.
  • Liontrust, taking it to 4.5%. Liontrust is performing very well and to me looks extremely undervalued.
  • Treatt, taking it to 3.8%. Momentum here continues to be very good.
  • Compass Group, taking it to 3%. I like Compass’s defensive qualities and think it makes sense to increase the holding.
  • Abcam, taking it to 2.9%. Similarly, while Abcam’s momentum is currently not so strong I think in the longer term this is a useful defensive holding.

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