We were forced to ditch another two of our share tips last week as the recent stock market rally came to an abrupt halt on fresh concerns about the effects of a Chinese slowdown on the global economy.
Our latest casualties were Glasgow-based Smart Metering Systems and Belhaven Brewery owner Greene King which both saw their share prices slip back to their published stop loss levels in the general mark down.
The disposals were not too painful for our portfolios as we broke-even on the notional investments even though the share prices had fallen the requisite 10 per cent from previous peaks which we use an indication that it is time to look elsewhere.
More patient followers might find it worthwhile holding on for better times and stockbrokers at Panmure Gordon, for example, argue that shares in both companies are relatively immune from problems affecting world trade and are now undervalued by around 30 per cent.
Others claim that Smart is finding it hard to justify its premium rating despite heady growth which saw interim profits rise 27 per cent while Greene King could suffer as a result of a sharp increase in its wage bill as a result of government measures to pay for low paid workers.
We are braced for further fall-out from the move towards the new living wage with shares in social housing and mental health contractor Cambian now also in clear danger of triggering a sell signal.
The latest Cambian setback and a drop in the price of B & Q retailer Kingfisher after the shares began trading without the benefit of the latest dividend resulted in a 1.4 per cent drop in the overall value of the 2012 portfolio.
Similarly the Greene King setback was a major factor in a 1.8% slide in the valuation of the 2014 selections where banking group Aldermore also took a hit on confirmation of the cut-price share offer from Lloyds Banking.
The 2015 and 2013 lists fared better although we both still showing fraction falls when we carried out of usual review on Wednesday morning.
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