Tuesday was the most recent share purchase I made. As the title might indicate, it was the company XP Power. If you flick back through previous posts you'll notice i've been a fan of this company for a few months.
When L and I went through the shortlist, we noticed that i've stuck quite a few generic electronic component manufacturers onto the list. This narrowed things down, then XP Power seemed an easy choice.
What are the key points on this one? Firstly, analysts seem quite split - either massive fans or totally cool on this one. One thing I really like about this one is the level of equity holding by the directors - two of the directors own 18.5% of the business, so they will be pretty aligned with my interests.
Dividends, which we all know makes up a significant amount of stock market growth, looks ok - somewhere between 3.5 and 5% for the next few years, with a cover of more than 1.97.
Is this a contrarian?? Well, I can't really imagine how many people would be getting involved in electronics as China slows down.
The future? I don't know - I am thinking that I might look at PPHE which is the Park Plaza hotel chain. Who'd invest in hotels and property at the moment? Me probably.
