Portfolio Update

As it is New Year I will have a quick look at the constituents of my growth porfolio.

1. CSR

CSR are the most interesting UK company I discovered in 2005. The market for their Bluetooth chips is growing rapidly and CSR are maintaining their position as leaders. I estimate they can earn 70p a share in 2006 putting them on a forward PE of 14. This is too low for a company growing at the speed of CSR. I would buy this one all the way up to 1400p.

2. eBay

eBay are my biggest holding and my favourite company. The have the best business model know to man. 2005 was a bad year for the eBay share price (SP). Although I managed to avoid the SP crash in January I bought in too soon and managed to capture another 20% drop in the SP. However the SP recovered somewhat in the second half and is now showing a modest profit. Sentiment on eBay is gradually improving and analysts are once again talking about $60 price targets. I am holding this one until investors get carried away again like they did at the end of 2004.

3. Google

Google was responsible for a large amount of my portfolio's growth in 2005. The SP more than doubled but I still think it has some way to go. The $600 price target slapped on it recently is realistic in my opinion and I will be holding for now. However I do not see it doubling again in 2006.

4. Rolls Royce

RR had an amazing 2005, increasing by over 60%! Unfortunately I only had a small holding so the impact to my portfolio was minimal. However I am going to carry on buying into RR so that by the end of the year my holding should be significant.

5. Verisign

$!$?$!? This is not a secret code but represents my feelings on the VRSN SP at the moment. It was obviously impetuous of me to buy in without knowing more about the business. I suspect that the Jamba! business has more or less decayed away to nothing and so the SP has slipped back to 2004 levels. I still think VRSN will be fine long term and so will hold on until I can sell at a small profit.