Here's the written summary of my most recent podcast (audio is here, or on podcast platforms), recorded on Saturday 29 October 2022.
Introduction. 27 companies covered in SCVRs this week, and one audio interview with professional corporate bonds trader, Paul Hawkins, on Thursday.
Monday 24 Oct -
Bioventix (LON:BVXP) (Graham). Amazing profit margin.
D4t4 Solutions (LON:D4T4) (Graham - interim results)
Cerillion (LON:CER) - really good performance. Could we have foreseen it multibagging? Not really - it’s down to winning major contracts subsequently. So we should look out for companies that are accelerating rate of contract wins. Balance sheet good, with net cash of £20m. Only small divis. Shares look expensive, but company is performing so well, it’s justified. I’m interviewing CER’s CEO on Tuesday.
Shoe Zone (LON:SHOE) - declined my invitation to do a CEO interview.
I only approach companies that meet my strict criteria to do interviews. So you know that when a new podcast comes through, is because that company is trading well, has a strong balance sheet.
Never advice or recommendations, it ‘s up to you to do the more detailed research.
Fulcrum Utility Services (LON:FCRM) - another profit warning. I’ve ditched my personal position, because losses are greater than expected, and it’s flagged that it might need more equity. So that breaks my key rule over having adequate funding, hence I’ve dumped it. Lost about 35-40% personally, but I’ve moved on.
Aferian (LON:AFRN) - used to be called Amino. Profit warning, caused by customer de-stocking, a big issue at the moment (unwinding high inventories, because supply chains are improving). Does set-top boxes for TV. Not an area I understand. Blown cash pile on acquisitions. $5.5m costs of aborted acquisition, seems crazy. I’m not sure management are adding value from an acquisition spree. Brokers downgraded forecasts by a third. Shares down similar amount. Doesn’t look cheap even now.
Luceco (LON:LUCE) also has seen customer de-stocking, hurting profits.
Mello Monday had interesting companies, e.g. Warpaint London (LON:W7L) , Quixant (LON:QXT) and Galliford Try Holdings (LON:GFRD)
Mello London, in Chiswick, returns 16-17 November. 50% discount for Stockopedia subscribers, see David’s post. Use it or lose it, for conferences. Social aspect of investing is important. Will be nice to see everyone again. Mention of Bill Makins…
