(Further details are shown at the end of this article.)

The current make-up of the portfolio warrants some discussion on switching and portfolio weightings.

Switching

Without the benefit of new money entering the portfolio (to simplify performance calculations), the Qualiport generally has to sell to buy. But the obvious problem is that one watch list share rarely provides much more quality and value than an existing holding at the same time.

Account for additional dealing costs and the fact that this portfolio can only announce its trading intentions on a Tuesday (and has to act within the following five trading days, thus running the risk of adverse price movements), the scope for successful Qualiport switching is limited.

Nevertheless, the Qualiport has carried out numerous share switches in the past -- with varying results. Importantly, the swaps were almost always based on issues of quality rather than value, the latest exchange -- June's replacement of Carpetright (LSE: CPR) with Associated British Ports -- being a good example.

However, deciding whether to switch from one quality firm to another can prove to be a dilemma. For example, at the time of the Carpetright/ABP switch, the factors considered for also exchanging some Johnston Press for ABP included:

1. Johnston Press shares were 30% above their then buy price.
2. More ABP shares could be purchased two months later, following a large special dividend from another holding.
3. Other watch list shares were very near buy-price territory too, e.g. Vodafone (LSE: VOD).

After some thought, the second and third points over-rode the first. Though not a buy at the time, Johnston Press shares were certainly not overvalued when ABP was bought.

In addition, there was the genuine possibility of swapping part of the Johnston Press holding for a sixth portfolio member, which would have given the focused Qualiport slightly more balance.

And if ABP's shares fell further after purchase (as often happens with Qualiport buys!), the money from the LSE's special dividend (paid in August) could have been used to average down instead.

The upshot from all of this is that there are no set rules to switching within and weighting a quality portfolio. Companies change, events happen, share prices move and it's largely down to gut-feel and experience as to how much money goes into how many holdings and at what time. For what it's worth, the current Qualiport plan is to:

* Top up one of the three smaller portfolio holdings with the current cash pile, and/or;
* Introduce a new portfolio company by selling part of the Johnson Press holding.

… as and when a suitable opportunity arrives.

But you never know. If circumstances dictate, the portfolio could buy even more Johnston Press shares.

Johnston Press results

At present though, Johnston Press shares are fairly valued. The company issued its half-year results last week and a summary is shown below: