Mark Watson-Mitchell’s CV19 Recovery Portfolio

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Mark Watson-Mitchell’s CV19 Recovery Portfolio

Market veteran Mark Watson-Mitchell has compiled a quick hit list of ten stocks – his CV19 Market Recovery Portfolio.

Anyone who tells you that he or she has seen all this market melee before is a liar.

I am very old and have endured many a market rout over the years, but I have to say that this recent crash is probably the worst.

So, what do you do with a fully invested portfolio bearing recent buy prices? Do you just sell out the lot and prepare to escape to your selected bolt hole when you are given permission to travel?

Or are you lucky enough to have supplies of fresh cash just burning a hole in your bank accounts?

To sell and get out?

First of all, I would not recommend dumping your stocks – you chose them for your holdings because you liked the story and the investment criteria to back up your selections, so hold tight.

Obviously the Covid-19 pandemic has thrown practically everything off kilter, hopes and prospects have been changed significantly and there is nothing you can do to repair them, other than hope that times get better – and soon.

Is any recovery due?

With such improvements it will be inevitable that recently obliterated share prices will see some smart recoveries, with the indices responding similarly.

Various of my previous company profiles now look totally out of line, while some are still showing strength, but all have been impacted by the virus in some way or another.

So, what would I do?

Several people have asked me which companies I would select for fresh investment, seeking a good recovery bounce before the year end.

Accordingly, I have compiled a quick hit list of ten stocks – my CV19 Market Recovery Portfolio.

The CV19 Market Recovery

Portfolio Suggestions – 24 March 2020

  • Billington (LON:BILN) – 242p

High 450p Low 242p

Mkt Cap £35.37m

pe 7x

yield 4.73%

www.billington-holdings.plc.uk – designer, manufacturer and installer of structural steelwork

My new Target Price: 320p.

  • Capital Drilling (LON:CAPD) – 34.5p

High 75p Low 29p

Mkt Cap £48.39m

pe 6x

yield 3.36%

www.capdrill.com – drilling and mining services contractor mainly into Africa

My new Target Price: 80p.

  • T Clarke (LON:CTO) – 71p

High 142p Low 71p

Mkt Cap £35.52m

pe 4x

yield 6.03%

www.tclarke.co.uk – electrical, mechanical and ICT services provider

My new Target Price: 120p.

  • Finsbury Food (LON:FIF) – 55p

High 105p Low 51p

Mkt Cap £74.32m

pe 7x

yield 6.26%

www.finsburyfoods.co.uk – cakes, bread, bakery snacks manufacturer for multiples

My new Target Price: 100p.

  • Inland Homes (LON:INL) – 41p

High 94p Low 32p

Mkt Cap £90.54m

pe 4x

yield 7.05%

www.inlandhomes.co.uk – residential and mixed developer of brownfield and strategic land

My new Target Price: 80p.

  • MPAC Group (LON:MPAC) – 185p

High 377p Low 128p

Mkt Cap £43.37m

pe 7x

yield 0.7%

www.mpac-group.com – packaging machines for FMCG, healthcare and pharmaceutical sectors

My new Target Price: 250p.

  • Ramsdens (LON:RFX) – 85p

High 260p Low 68p

Mkt Cap £31.92m

pe 5x

yield 7.24%

www.ramsdensplc.com – foreign currency, pawnbroking, precious metals and retail jeweller Liberum Capital has a buy rating with a price target of 180p

My new Target Price: 120p.

  • Rank Group (LON:RNK) – 97p

High 329p Low 78p

Mkt Cap £437m

pe 9x

yield 7.42%

www.rank.com – operates gaming services, Grosvenor Casinos, Mecca and Enracha

Peel Hunt has a buy rating with a price target of 240p

My new Target Price: 150p.

  • Strix (LON:KETL) – 122p

High 200p Low 111p

Mkt Cap £256m

pe 11x

yield 6.38%

www.strixplc.com – market leader in kettle safety controls and hot water on demand products

Peel Hunt has a buy rating with a price target of 170p

My new Target Price: 160p.

  • Sureserve (LON:SUR) – 31p

High 51.5p Low 26p

Mkt Cap £50m

pe 11x

yield 1.59%

www.sureservegroup.co.uk – compliance, energy services, property services and construction

My new Target Price: 50p.

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