Derek Pain: 'Patience is a virtue but maybe I should cut and run'
Derek's portfolio is currently suffering because of his failure to be more ruthless
I am wondering whether I should dump two long-standing members of the No Pain, No Gain portfolio. Like many small investors I am a reluctant seller, preferring to hang on in the hope that the shares will eventually improve.
The portfolio is currently suffering because of my failure to be more ruthless. Clearly I should have unloaded SnackTime long before the shares slumped into single figures. And I could have been more resolute over Stock Spirits, although I have stuck a stop- loss price on the shares.
During the portfolio's 16 years in existence, some fallers have recovered to notch handsome profits. Among the current constituents, Mears, the support services group, and the leisure giant Whitbread have both recovered from earlier slumps. From being out of pocket, the portfolio has reaped handsome gains – yet it's possible that the best days of these stalwarts are over.
Mears has been a hugely profitable investment. I first descended on the shares at 23p and sold above 80p. They were then re-recruited at 272p and the price topped 540p. It is, as I write, around 420p after earlier slipping to around 200p. Whitbread, purchased at 1,105p, was at one time below 800p. The shares, recently under 5,000p, are now 5,255p after nudging 5,500p.
However, question marks, particularly over Mears, must exist. If its shares remain subdued I will have to reconsider. Worryingly, there is a chance that the picture is changing at both groups. Mears has talked about contract opportunities becoming more "subdued" and Whitbread produced quarterly figures a little below expectations.
The aspect about the Whitbread details that caught the eye was the flat restaurant performance, even if Premier Inn and Costa Coffee are again trading well. And competition is hotting up. Greg Johnson, analyst at Shore Capital, rates the shares a hold but wonders if the market will start to question long-term growth prospects in this country. He forecasts annual profits of £556m against £488.1m last time.
The wider stock market's fall from its peak has contributed to the pair's decline. Still, Mears' retreat is long-running and Whitbread, with its successful chief executive, Andy Harrison, departing, could be in a new ball game.
Of course selling is not the only difficulty – buying can offer a multitude of problems. One reader emailed me to say I displayed considerable patience over my selections. But often dallying over a buy costs money, as I experienced with Patisserie.
Luke Johnson, chairman of Patisserie, has appeared as a buyer – and seller. The shares have come off the top following his decision to pump £1.5m into Eclectic Bar Co and become chairman. About the time of the injection, Mr Johnson and other directors sold Patisserie shares to "satisfy specific market demand". The shares are 310p.
His holding in the bars business is 18.5 per cent; its shares responded to the cash infusion and his involvement by rising 13p to 63.5p. They were floated in November 2013 at 160p.
Yourmoney@independent.co.uk
Independent Partners; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at VouchedFor.co.uk
-
Bank finally sees sense over £6,000 charge for redeeming mortgage two days early
-
Questions of Cash: 'I want a refund on my TV licence payments but they've turned my claim into a soap opera'
-
Bank-beating exchange rates on your international payments
-
Bargain Hunter: Which TV deal is cheapest for armchair football fans?
-
Writing a will: How to ensure that your legacy is honoured
- 1 Katie Hopkins questioned by police over allegations of inciting racial hatred after migrants article
- 2 Porn block in India: hundreds of sexual websites banned, internet outraged
- 3 Malaysia issues arrest warrant for Gordon Brown’s sister-in-law after she publishes stories on leader Najib Razak's financial affairs
- 4 Natalia Molchanova: World's most successful free-diver missing and feared dead after disappearing in Mediterranean
- 5 US bookshop offers Go Set A Watchman refunds over false marketing as 'nice summer novel'
-
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
-
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
-
Chris Leslie: Jeremy Corbyn's anti-austerity agenda will harm the poor, says Labour shadow Chancellor
-
Jeremy Corbyn: Tony Blair could face war crimes trial over 'illegal Iraq invasion'
-
Landlords renting properties to illegal immigrants to face up to five years in prison
-
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Independent Dating
iJobs Money & Business
Recruitment Genius: Sales Executive / Independent Insurance Consultant
£15000 - £30000 per annum: Recruitment Genius: Scotland's leading life insuran...
Guru Careers: Account Manager / Membership Manager
£35 - 38k + Benefits & Bonus: Guru Careers: We are seeking an Account Manager ...
SThree: Trainee Recruitment Consultant
£20000 - £25000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
Guru Careers: Associate Director
£50 - 80k: Guru Careers: We are seeking an Associate Director for the Markets ...
Day In a Page
Colwyn Bay, Wales
Hackney, E9
Topsham, Exeter
Bingley, Bradford
Cowes, Isle of Wight
Truro, Cornwall
Bungay, Suffolk
North Kensington, W10
Donaghadee, Bangor
Hampton, TW12
Keswick, Norfolk
Lewisham, SE13
Chelsea, SW10
Hooe, East Sussex
Baldrine, Isle Of Man
Bow, E3
Skipton, North Yorkshire
Sandbach, Cheshire
Blythburgh, Halesworth
Gislingham, Suffolk
Orford, Suffolk
Stapleford, Cambridge
Shaftesbury, Dorset, SP7
Tilshead, Wiltshire
Bewdley, Worcestershire
Heathfield, East Sussex
Wooler, Northumberland
Wavertree, Liverpool
Padstow, Cornwall
Shanklin, Isle of Wight
Longtown, Carlisle
Frinton-On-Sea, Essex
Chippenham, Wiltshire
Cockermouth, Cumbria
Bethnal Green, E1
Marchwood, Southampton
Milford-On-Sea, Hampshire
Lambeth, SE5
Bermondsey, SE1
Fartown, Huddersfield
Horsham, West Sussex
Redruth, Truro
Newport, Isle Of Wight
Harrogate, North Yorkshire
Sway, Lymington
Caterham, Surrey
Westerham, Kent
Mortlake, SW14
Llanwrda, Llandeilo
Lymington, Southampton
Colwyn Bay, Wales
Built on a former chapel site, this impressive four-bedroom home boasts balconies, stunning views and contemporary modern living.
Hackney, E9
This three-bedroom house is situated in a quiet mews and set over three floors. Features include glazed staircases and high ceilings.
Topsham, Exeter
A period townhouse set over four floors, this five-bedroom home was built in the 18th Century and retains many original features.
Bingley, Bradford
With five bedrooms, this spacious home offers beautiful gardens and modern interiors - set within the popular market town of Bingley.
Cowes, Isle of Wight
Set sail for this four-bedroom farmhouse in Cowes. With five acres of land and an indoor pool, this home oozes character. There is even potential to let a one-bedroom annexe.
Truro, Cornwall
A few miles from the seaside at Perranporth, this four-bedroom farmhouse sits amongst nine acres of idyllic grounds - including a lake and two barns used as holiday lets.
Bungay, Suffolk
In the pretty market town of Bungay, this grade II-listed Mill House is arranged over four floors, offering four bedrooms and three reception areas.
North Kensington, W10
This first-floor flat comes with two bedrooms, an impressive open-plan reception room and two lovely roof terraces.
Donaghadee, Bangor
This five-bedroom home comes with a range of outbuildings including a large barn which could be converted into a self-contained granny-flat or rental.
Hampton, TW12
Moored at Taggs Island and reached via a pretty garden, this two-bedroom houseboat has a vaulted reception room and skylit garden studio - currently a beauty salon.
Keswick, Norfolk
On the edge of the city, this six-bedroom home comes with an outdoor swimming pool and a large garage block that has annexe potential.
Lewisham, SE13
A contemporary house spread over three storeys, this three-bedroom detached home has large sliding doors that open out to the River Quaggy.
Chelsea, SW10
Moored in Chelsea's Cheyne Walk, this houseboat offers two double bedrooms and a teak deck that's ideal for al-fresco dining.
Hooe, East Sussex
This former village bakery, dating back to the 17th century, is now a three-bedroom detached home just a few miles from the East Sussex coast.
Baldrine, Isle Of Man
On the picturesque Isle of Man, this four-bedroom character home has a ground-floor shop that's currently run as a newsagents and a flat that would make an ideal holiday let.
Bow, E3
In a new collection of flats, this first-floor two-bedroom apartment offers ample entertaining space and a prime view of Furze Green from a private balcony.
Skipton, North Yorkshire
This three-bedroom stone-built cottage currently trades as the village store with a restaurant in the annexe and family accommodation on the upper floors.
Sandbach, Cheshire
Previously two semi-detached properties, this five-bedroom home is spread over three floors with a large breakfast kitchen, orangery, office and gym on the second floor.
Blythburgh, Halesworth
This five-bedroom home enjoys countryside views over the Blyth estuary to Southwold, offering flexible living space with a ground-floor annexe - ideal for use as a holiday let.
Gislingham, Suffolk
Close to the market town of Eye, this four-bedroom detached home offers a double-height living room which takes the place of the original, 19th-century, chapel nave.
Orford, Suffolk
Dating back to the 19th century, this four-bedroom home needs modernising. Spanning three storeys, the red-brick house has a fireplace, a small terrace and a cellar.
Stapleford, Cambridge
Just outside of Cambridge, this single-storey home offers three double bedrooms, a living room with vaulted timber ceiling and ladder steps that lead to a mezzanine study area.
Shaftesbury, Dorset, SP7
This six-bedroom Georgian home is on three floors with open fireplaces, a two oven Aga, an annexe, and cottage gardens with outbuildings and a car barn.
Tilshead, Wiltshire
A former coach house, Glebe Farm Stable is now a three-bedroom cottage with a double car barn, an attached office, kennels and an outbuilding that's currently used as a gym.
Bewdley, Worcestershire
Located beside an impressive Victorian viaduct, this four-bedroom home has an open-plan living area that is glazed on two sides, with skylights and high ceilings.
Heathfield, East Sussex
A former furniture workshop, this three-bedroom home has high ceilings and painted brick walls, in a village setting only fifteen miles from the coast.
Wooler, Northumberland
This five-bedroom stone townhouse features a pine staircase and an Inglenuk fireplace, double doors from the lounge give access to an enclosed courtyard.
Wavertree, Liverpool
This five-bedroom, detached home blends traditional and modern design; the sleek kitchen features a gas hob and oven set within an exposed chimney breast.
Padstow, Cornwall
Capitalise on the fabulous views of Trevone Bay by taking two homes and creating one spacious boutique B&B. Just a cliff-top walk from Padstow.
Shanklin, Isle of Wight
Surrounded by woodland, this five-bedroom manor house has plenty of outdoor storage space in the form of three converted loose boxes, two smaller outhouses and a woodstore.
Longtown, Carlisle
This six-bedroom home is set amongst three acres of grounds. Currently a large family home, Clift Hill has potential to make a B&B or countryside retreat, subject to change of use permissions.
Frinton-On-Sea, Essex
This Grade II-listed three-bedroom home is situated on a private road, just a short walk from the sandy beaches of Frinton-on-Sea.
Chippenham, Wiltshire
Less than five miles from Malmesbury, this four-bedroom cottage comes with equestrian facilities and gardens that extend to approximately three acres.
Cockermouth, Cumbria
Spanning three storeys, this late-Victorian five-bedroom farmhouse is a spacious family home with a modern interior and B&B potential.
Bethnal Green, E1
With an original church arch, this triplex one-bedroom church conversion has a light, spacious, feel and comes with a secure off-street parking space.
Marchwood, Southampton
This recently-refurbished three-bedroom home has bi-folding doors that lead out to a decked seating area - ideal for alfresco dining this summer.
Milford-On-Sea, Hampshire
Well-located for coastal walks and popular restaurants, this detached four-bedroom home offers views over farmland, to the Solent, the Purbecks and Bournemouth.
Lambeth, SE5
If you love high ceilings, school conversions like this one are bang on the money. This two-bedroom flat is minutes from Burgess Park and the foodie haven at Borough Market.
Bermondsey, SE1
Set within a church conversion in Bermondsey, this two-bedroom maisonette combines existing features, such as original arches and brickwork, with a contemporary finish.
Fartown, Huddersfield
This four-bedroom Edwardian home offers a combination of original features and contemporary design after a renovation by the current owners.
Horsham, West Sussex
This four-bedroom home offers a vaulted ceiling in a breakfast room that's ideal for summer entertaining with doors that open to the patio and garden.
Redruth, Truro
On the market for the first time in more than 50 years, this six-bedroom home is a project with vast potential - spread over three floors of living space.
Newport, Isle Of Wight
Surrounded by rolling countryside, this four-bedroom barn conversion comes with a self-contained, one-bedroom annexe that could serve as an office or a holiday let.
Harrogate, North Yorkshire
Located near Harrogate town centre, this five-bedroom Victorian terrace is arranged over three storeys while a current study serves as an optional sixth bedroom.
Sway, Lymington
A ground-floor flat in a country house, located a mile from Sway; this two-bedroom home would make an ideal weekend retreat on the edge of the New Forest.
Caterham, Surrey
On a popular residential lane in Caterham on the Hill, this four-bedroom family home offers a secluded garden and a convenient location for local schools and public transport.
Westerham, Kent
Just a short walk from Westerham green, this three-bedroom cottage has a light kitchen with exposed brickwork and double doors that lead to a south-facing garden.
Mortlake, SW14
In a prime spot opposite the River Thames, this one-bedroom flat has an 18sq ft reception room with glass doors that open out to a private terrace.
Llanwrda, Llandeilo
Set in the hills above Llanwrda Village, west Wales, this 18th-century three-bedroom farmhouse has holiday-let potential from a separate barn conversion and annexe.
Lymington, Southampton
This charming end-of-terrace townhouse is arranged over three floors, with two double bedrooms and a private courtyard garden located at the rear of the property.