Over the past year or so, the pandemic has been hitting charities and their revenue streams very hard.
Charity shops were closed and fundraiser events were cancelled, therefore, they need donations now more than ever.
By contrast, investors in the main have had an amazing year since the pandemic bottom in the markets and most have had reduced expenses so we have been very fortunate and weathered the storm. So how can investors help these underfunded charities…?
At Mello we had a session where all the investors on a panel agreed that a company called SCS seemed undervalued and we felt that once lockdown ended we should see share price improvement so I said…If it gets to £3 (up from £2.35) as a target then I would happily donate £300 to the charity that Paul Scott (one of my fellow panellists) wished to name.
This gave me the thought that many more investors could do the same so I decided to create a session and webpage dedicated to investors creating charity pledges based on share price targets and defined time limits.
So here it is and let’s see how much we can all raise for charity and if you want to match another investor’s pledge you can do so or set up a unique one of your own.
Mello does not collect any pledges, we merely record them so you will be responsible for the donation when targets are met and maybe gift aid can boost it further.
Ultimately we want the charities to gain a donation so please do not set unrealistic targets that are very unlikely to be achieved.
At Mello we think an annual return for investors in double digits is highly satisfactory so targets for charity really should not be more than 20% growth from where the share price is today especially if expecting to hit that target this year. Ideally 10 to 15% is hopefully realistic.
From David Stredder
In our first charity pledge session on 12th April, our panelists chose their company, stock price level and charity:
Hi, I am a middle aged bloke named Pete who lives in Windsor. I aim to make about 10% to 15% a year gains on my Stock Portfolio, compounded over many years. In practice this means I will have dire years where I lose 25% and cracking years where I gain 25% – and a range of outcomes in between (or even outside this range !!) – but over longer periods I should get near my targets. I then use Spreadbetting to gear up this return but with controlled leverage so my risk is carefully managed – don’t worry at this stage, as time goes on you will hopefully get a good insight of my Approach.
Company chosen – SONG
David went into the City after graduating from Oxford University in PPE in 1982 and spent 30 years in fund management. Most of his career was at Henderson where he was a Director and Head of UK Institutional Equities. He has also managed US equity portfolios and founded an Emerging Markets fund focused on Eastern Europe. David became a financial journalist in 2013 and has been Editor of Growth Company Investor since 2015. He is now also the owner of GCI, which is a long-established subscription newsletter focusing on UK small cap equities
Company chosen – Motorpoint
I trained as an accountant with a Top 5 firm, but that was so boring that I spent too much time in the 1990s being a disco bunny, and busting moves on the dancefloor, and chilling out with mates back at either my house or theirs, and having a lot of fun!
Then spent 8 years as FD for a ladieswear retail chain called “Pilot”, leaving on great terms in 2002 – having been a key player in growing the business 10 fold. If the truth be told, I partied pretty hard at the weekends too, so bank reconciliations on Monday mornings were more luck than judgement!! But they were always correct.
Company chosen – SAGA
All webinars held by Mello Events Ltd are intended for informational purposes only and are general and educational in nature. The information provided, including the views expressed by the hosts, presenters, sponsors or other third parties during Mello webinars, events and/or any material published does not constitute investment or other professional advice and should not be construed as a recommendation to buy, sell or hold a particular investment.
Mello does not recommend any investment in any particular company. No-one should act on the basis of any information and/or material provided without obtaining proper investment or other professional advice specific to their situation. If you are in any doubt about the information provided by Mello Events, please consult your financial or other professional adviser. Mello does not administer any donations or pledges and any donation should be sent directly to the charity selected.
How do I make a pledge?
Click on the above link, and at the top click ‘Pledge Now’ and complete the short google sheet form and click ‘Submit’ at the bottom.
Do I need to give any personal details?
No, you are not asked for any personal details at all, you can even choose a nickname.
If the share price I select does go up the level I state on the pledge form, how do I make a donation?
Mello does not collect any donations. Your donation should be sent direct to the charity of your choice. Please notify us when you have made the donation by clicking here.