Investment Matters

Portfolio change: ALS

This week we sold First Samuel's entire (but small ~1.1%) position in ALS Limited.   This was a short association (unusual for First Samuel investments, which are generally owned for 3 years+). 

First Samuel clients partially sub-underwrote a capital raising for ALS in December last year, at $3.35ps.  Since that time the stock has rallied (+27.5%), and we decided not to build a meaningful position.   Our view of the company has not changed; we view it as a quality, global company, albeit with current commodity related pressures impacting its Minerals and O&G divisions.

Given the share price increase (weakening the valuation attraction of the investment), and that we were unable to acquire additional securities at a price we were comfortable with, we sold it (at $4.27ps).

This will result in a non-discounted capital gain for tax-paying clients.  However, given overall tax positions we are comfortable with this.  Noting the discussion above, proceeds have been added to the cash position for the moment.

-       Fleur Graves