Strix Group increased to 4.0%

Strix (KETL.L, Aim 100, Market cap. £253m, 128p, 4.0% of JIC Portfolio and 8.9% of JIC Top 10): 

Another trade in Strix Group; I have increased the position to 4.0% of the JIC Portfolio 

I left a limit order at 128p which has just been dealt.

At 128p, on current forecasts the shares are on a prospective yield of 5.5% for 2018, rising to 6.0% in 2019. That looks very attractive to me, especially as I think there is a high degree of probability that these forecasts will be met. It has very strong cash flow and I think, a pretty defensive business.

That leaves me with no cash, so any further changes to the Portfolio are going to involve juggling existing positions.

On the chart below the 50 day moving average in green and 200 day moving average in red, are both heading down. Momentum is clearly down so this is very much a “knife catching” exercise! I am prepared to do that as I think at this price, sellers are giving the stock away. Time will tell who is right, me or the sellers, but a 5.5% dividend yield looks too tempting for me.

Screenshot 2018-11-21 at 08.33.40