Selling my position in SCS.

As I predicted SCS’s recent RNS stated that sales improved in the final quarter and sales were up 1.4% on last year.

Management profit expectations were in line.

The share price rose from 143 before the announcement to 165 today where I sold.

I bought in at 158 so its a pretty minimal profit when I consider the risk involved. To some degree this is a case of a poor entry leading to a poor exit – if I had bought in at a better price of say 145 I would be getting say 13% – still a disappointment regardless…

Although housing construction looks to be up – a key driver of this sort of stock I still believe the UK property market is overvalued, I believe a crash could come at any time so want to very carefully manage my exposure. This means no house builders, no banks and only limited exposure to anything else UK property related.

I still think this is likely to to up somewhat – in a good market and the fall is overdone. Despite this I am selling as I don’t want the exposure and there is something of a chill over the markets more generally – we are near 7000 peaks and things generally are looking expensive.

As Titon is also linked to construction I wouldn’t want two holdings both of which are linked to a sector I dislike.

I am going to try to avoid this type of trade in future – I am better holding cash and waiting for a more substantial opportunity rather than going for a cheeky 10-20%. Having said that never say never !

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