The Magic Hat portfolio has been remarkably disaster-prone. It has stepped on a lot of mines: Huntsworth, Sears Hometown, NetPay, and now PRES (Pressure Tech). Despite all that, the portfolio has held up well. If only I could avoid the disasters, it should be able to pull ahead.
PRES released an RNS today for an update on trading and notice of interim results (http://is.gd/FrH1wx):
Whilst the price of crude oil has partially recovered from its recent lows, there has been a further slowdown in recent weeks in the release of capital projects in the oil and gas market. This has resulted in a material deterioration in the immediate prospects for the Group’s Precision Machined Components and Engineered Products divisions. These weak market conditions are now expected to continue into the next financial year when they will also impact the results of the Cylinder Division.
So down we go! PRES fell to 194.4p, losing 75.5p as at the time of writing.
PRES was added to the portfolio on March 2015, in which I noted (http://is.gd/EpO0FD):
I was not happy with the shares that the Greenblatt screen produced, so I decided to switch strategies. … PRES (Pressure Technologies) is the second share added to the portfolio. … As you can see, it’s a bit of a mess momentum-wise. It has a value rank of 91, and a momentum rank of 11. It also has net cash, and the gearing and liquidity ratios on Stockopedia are all green. So hopefully the market is sufficiently peeved with the company, and sufficient value is available for this to make a healthy rebound.
I should have heeded the warning that the momentum rank was signalling.
PRES has an RS6m of -54% before the current drop. I will keep the share in the portfolio until the allotted ejection date, but I’m not a happy bunny. It’s possible that the share price will recover. I wouldn’t buy in, though.