15 December 1999 - Stop-Loss/Gain-Lock Policy

At the special meeting held on 15th December (to be ratified at the usual meeting on 13 Jan) it was agreed that a stop-loss figure shall be fixed when an investment proposal is agreed and that the stop-loss will reflect the degree of speculation with the share.

If the investment is a speculative share the initial stop-loss
shall be set at a figure 30% below the purchase price. If the
investment is a non-speculative share the stop-loss shall be set
at a figure 20% below the purchase price.

The stop-loss figure cannot be reduced.

If the middle price of the share falls below the stop loss figure
then there is an implicit agreement within the club to sell the
holding at the first opportunity and at the best available price.

It was agreed that if the brokers failed to sell for any reason
or the 'share-owners' failed to spot a stop-loss breach, there
would be no recrimination.

Details of the stop loss figures for current holdings can now be found on the portfolio page.