Market correction and updates

Market's are currently looking a little jittery. There has been plenty of talk in recent months about share prices getting ahead of themselves, and that a Market correction was looking a distinct possibility. Whilst ratings on certain stocks may be a little toppy and suffer a setback, my personal view is that in the long term this Bull market still has considerable legs. Having said that, it does largely depend on the portfolio of stocks that you currently hold. Economic recovery is happening, but it's still in it's early stages (hence the low interest rates), and when it really does build momentum then I expect earnings reporting from many companies to surprise to the upside. Ultimately it's earnings that dictate the share price direction. So far my portfolio has managed to shrug off the current nervousness in markets, and most have issued robust trading statements. If any prices suffer because of general market sentiment then I will see that as an excellent opportunity to increase my holdings.

On this subject, at last week's Avesco GM the share-buy-back, and B/C Share scheme was approved by shareholders, and £1.10 will be returned at the end of this month. The share price dipped on Friday to reflect the return of cash as the shares went ex-dividend. Avesco's shares now trade at £1.25. With a declared dividend of 5p this year, the yield is a generous 4% with a progressive dividend policy in place. To see why I believe that the 2014 dividend could be considerably more generous read below:-

http://michae1mouse.blogspot.co.uk/2013/12/proposed-share-buy-back-and.html

The shares of course trade at a considerable discount to NTAV, and needless to say, I consider the shares to be undervalued.

In other news, another of my holdings Trakm8 released a RNS detailing their biggest ever contract win with  a UK insurance group. Whilst the £1.2m hardware order is significant, the bit I like best is this:- "This hardware order is expected to be followed by a service support contract providing additional and long-term recurring revenues for the Group."

http://uk.advfn.com/news/UKREG/2014/article/60634813

The group boasts a significant percentage of revenues as recurring, and coupled with high margins and good cash generation, Trakm8 remains a very promising long term hold for me. For further details:-

http://michae1mouse.blogspot.co.uk/2013/12/trakm8-interims-and-brief-updates.html

Finally, a mention of my speculative holding in Angle. It's becoming increasingly difficult not to get excited about this company and it's Parsortix product following a string of positive news flow. Following on from the news last year of CE mark approval, they have recently announced the appointment of an eminent Scientific Adviser, Dr Harold Swerdlow and an agreement with the Medical Research Council's Cancer Unit at the University of Cambridge to investigate "several exciting research avenues to test different applications of the Parsortix system in the diagnosis and personalised treatment of cancer."

Angle will release their interim results on Thursday this week (30th January). I don't expect to see much evidence of revenues from sales yet, but I am looking forward to reading about any further progress.

As ever, no advice intended or given.