Sys report 05/08

Here is an example of a monthly report (May 2008, Cookson Group), sent to all members  as part of the Systematic investment method

 This is a supporting document that is shown here by way of example and needs to be read  with  the Systematic investment method


Systematic GROWTH Portfolio Monthly Report

May 2008

Proposed Share

  • The share proposed for this month is Cookson Group
  • This share has come top of the revised[1] GROWTH systematic portfolio run on 06/05/2008

What you need to do next

  • Review this share, by looking at recent news, its sector, results, fundamentals, key dates technical analysis, charts, products, prospects/outlook, risk/rewards, portfolio fit etc.
  • If you agree with the purchase, you do not need to do anything. Else, you need to email ALL members by 13/05/2008 to reject the proposed share.
  • Recall that it has been filtered as top of the GROWTH systematic screener this month.

How it works

  • This share will be automatically purchased on 14/05/2008 unless 5 members[2] or more vote against the purchase.
  • The dealing team will buy the share on the designated date or at earliest convenience after that (unless the share gets 5 negative votes).
  • The amount to be invested[3] is
    • £2000 if up to 2 members have rejected the proposed share,
    • £1500 if 3 members have rejected the proposed share,
    • £1000 if 4 members have rejected the share, 
    • £0 if 5 members or more have rejected the proposed share
  • This systematic portfolio has a maximum of six shares.

Variables used in stock screening and short-listing[4]

  • Market Cap
  • EPS growth forecast next year
  • PE: Price Earnings ratio
  • PSR: Price to Sales ratio
  • RPS: Relative Price Strength
  • PCF: Price to Cash Flow ratio
  • RiskGrade
  • Brokers All Buy
  • EPS growth forecast next year +1
  • PEG: Price Earning Growth
  • PBR: Price to Book ratio
  • Net Gearing
  • ROCE: Return of Capital Employed

Methodology: Select top deciles and based on top market deciles.


  • Shareholder funds >0
  • Profit (pretax) >0
  • Total cash >0
  • Average profit growth 1 year >0
  • Both EPS forecast next year and Y+1 >0


[1] This revised GROWTH systematic portfolio has been discussed, voted and agreed at the November 2007 AGM.
[2] It is actually more than 50% of the members of the club – but to make it easier for this report – I have used 5, which is more than 50% of 8 current members
[3] The amount invested reflects the strength of the collective decision making in the club.
[4] Items in bold are new variables added to strengthen the systematic portfolio. The validation section also is new.
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