It’s been almost a month since I last added a new UK stock to the SIF folio. The company in question was small-cap building services firm Bilby. This holding hasn’t got off to the best start as it’s already fallen by 17%.
This makes Bilby the second biggest faller in SIF. Regular readers will know that I don’t use stop losses or sell stocks ahead of schedule. So Bilby will keep its place in the folio for at least nine months. However, I think it’s worth taking a quick look to see what, if anything, has gone wrong.
Bilby – founder share sale?
I’m not too concerned by the sudden drop in Bilby’s share price. The firm’s full-year results in July were good and there’s been no newsflow to justify a fall since then.
One possible explanation is that there’s a big seller in the market. This idea seems to be supported by market data on 3 September, which suggested that more than a quarter of the group’s stock has just changed hands:The only shareholder who controls this many shares is founder and Deputy Chairman Phil Copolo….
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