GMF Top10 2021 closing summary

Final position of approx 5.5% decline if investing equally in each stock. Some highs and some lows and a few unfinished stories. Sets things up for the coming year maybe….

The Highs

#PIP, #BLU, #SAL were perhaps 3 of the least popular picks at the time, but all have shown a great return over 2021. #PIP and #SAL both hit targets and I retain them in my long term holdings as feel both businesses have a long way to travel, along a positive path as UK Manufacturing and UK Retail advertising both recover from Covid related hits. I don’t see them doing another 50-100% growth in 2022 so won’t be putting them into my new Top10 but they have done me proud so far and happy to keep a significant chunk of each company in my real life investment strategy.

#BLU is a fascinating boutique of investments, with Satoshipay and Dynasty leading the way. I picked a target of 0.8p for fair value and believe it has every chance of continuing the 2021 growth shown since November as the market wakes up to the potential within. This means it will stay in my Top10 for 2022.

Also staying in the Top10 for 2022 will be #EUA as the journey continues with them now having 3 different businesses within 1, PGM, battery metals and hydrogen production (as discussed elsewhere).

The Lows

#POW, #VDTK, #NCYT, #TWD, #ZOE (now #CHLL)

Not everything will be a success, but I see a route back to breakeven point from 2.1.21 on #POW, #NCYT and #TWD given time. Whilst each had a nice rise above starting point, each suffered from problems, either unloved by the market or not achieving the progress anticipated in a timeframe that seems ever shorter as investors/traders jump from stock to stock. Holding them in real life but won’t be including them in Top10 for 2022 as unsure as to timeframes and don’t feel a need to put a target on their performance yet.

#CHLL – disaster, what else can be said. Lack of revenue, severely punished by the markets and now in the bottom drawer. A profit was available for those calling the top of the hill, that is perhaps the best sentiment I can muster for this stock at present.

#VDTK – a great product and it would seem a complete inability to tell the story so far. Perhaps my fault for not following events closely enough, which is a downside of any investor with a large number of holdings. Was never in profit during the year so definitely a failure, so far. Believe in the product though so won’t be selling my holding for the foreseeable future. At time of writing it could head back to 8p or stay where it is, coin toss seems as accurate as anything I can suggest so won’t be including it in a Top10 list this coming year.

#Hi55 – hard to measure progress on private companies, several investors exited at 70p which was also the price at start of year, so a score draw on the portfolio

2022 thoughts

Will post separately on the Top10, to see what stocks join #EUA, #BLU and $PRTG in my Top10 for 2022. As the intention is to hold stocks for the full year and not change every 5 minutes, I might seek to discuss some steadier investments that offer growth potential without being as high risk as others.

Comparisons

Of little relevance to anything, nobody I tracked has shown a profit across the whole 12 months, but Myles and Zak got off to a strong start before market conditions caught up with their picks. Maybe I should track a few more in 2022!


#PIP – Pipehawk PLC – Top10 2021

Tiny microcap so very hard to buy – £2.5m – full disclosure I own around 1.5% of the firm now.

website : https://www.pipehawk.com/ja2019/index.php


A boutique of firms, highlights are
QM Systems – £1.7m contract in place for this financial year and well regarded within manufacturing sector for niche machines.
Adien – involved in 5g rollout with site surveys and inspection services alongside regular work. Featured in a small way in the following write up

https://hybridan.com/wp-content/uploads/2020/05/5g-sector-piece_29052020.pdf


Thomson Engineering – involved in rail sector with attachments for machines and a range of products. They’ve not mentioned HS2 but obviously a lot of interest in the sector as that proceeds from a build perspective

Downsides – Chairman is propping up the company with a big loan but is very supportive and speaks his mind on Brexit and other issues. This is a genuine downside and not pushing it aside.
Other even smaller companies in the group might be a drag on performance, little reported about them. Website needs a refresh and social media is non existent making it truly under the radar.

Reason I invested
UK Manufacturing needs to find its feet again and invest in more productive systems to enhance competitiveness. QM Systems can be a part of this. Not a 5 min trade, will take some time to bear fruit but if they continue the contract wins and improve communications I could see a price around 12p being sustained.
Brexit deal can only help them now as manufacturing should be able to continue as before.

Chairman speaks his mind – I like straight talking and you can’t beat this :

As of start of Jan 2021, 7-8p

Please note – these are my independent thoughts on #PIP as a shareholder and not to be taken as investment advice.

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