Small Cap Value Report (Mon 10 June 2024) - MEGP, STAF. Brief: GMS, BBSN, CHLL, PTY

10th Jun by Paul Scott

99 comments 8419 reads

Good morning from Paul & Graham!

Holidays

Over the next fortnight or so there might be somewhat reduced coverage here, as we (Paul, Graham & Roland) all have holidays booked. I'll take my laptop with me, and do what needs to be done, but the time difference could be tricky (I'll be in Washington DC). It's not the sort of thing anyone else can cover, as I jealously guard our colour-coding system! Anyway we'll manage, but just don't expect miracles for the next fortnight. We work on a flexible basis here - that most days we deliver far more than required, but there might then be some other days where these's less content, that's just the way it is.

Videos

This was fun! I found a new bit of software that makes recording videos from my screen dead easy, and I made 2 of them, which seem to have gone down well.

Does the SCVR colour-coding work? (the short version is, yes, very well!). Thank you to Phil Hanson who crunched the data which I talk through in this video.

Update on our 2024 top share ideas - Graham and I are now neck & neck at c.+27% YTD, which we're obviously delighted with, for our fixed top 30 share ideas for this year.

For ad hoc stuff, making a quick video like these is so much more efficient than spending hours writing an article, so if people like them, I'll do more of these.

** EDIT at 11:44 - I've just recorded a new video here, demonstrating how to set up a simple stock screen to identify & sort broker upgrades **

Mello Monday

The popular online investor shows run by renowned investor David Stredder. Starts at 17:30 tonight, details here. I'm looking forward to hearing what Gervais thinks - let me guess, super-bulllish?! LOL. But he's right to be, as UK small-mid caps still have plenty of bargains on offer. Companies presenting include Impax Asset Management (LON:IPX) and React (LON:REAT) both of which we've written about here recently.

Explanatory notes -

A quick reminder that we don’t recommend any shares. We aim to review trading updates & results of the day and offer our opinions on them as possible candidates for further research if they interest you. Our opinions will sometimes turn out to be right,…

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carmensfella

10th Jun

The Mello Monday show starts in about 45 minutes with Gervais Williams the guest speaker

MelloMonday 10th June 2024 – Mello Events

Here is the programme....

Programme

5:30pm Gervais Williams of Premier Miton presents UK Breakout – What Next?
6:00pm Company presentation by Impax Asset Management
6:30pm Company presentation by REACT Group plc
7:00pm BASH Panel featuring Mark Simpson (Ramsdens RFX) and Kevin Taylor (Polar Capital POLR)

There are lots of interesting sessions and all annual pass holders and individual ticket holders will be sent a recording of the show within 48 hours of registering. For half price tickets, use code MMSTOCKO50

Bouden54

Try not to be too obsessed with the (very) short-term - unless you need the money now who cares? Try and imagine what your shares will be worth this time next year.

Andy Sav

Thats a good spot! I was thinking he had sped up his rate of speech. This explains it :-)

jonno

Centaur Media (LON:CAU)

Downing Strategic has reduced its holding to just above 3% from 4.39% (RNS of 5 June).

I suspect that Downing's holding in Volex (LON:VLX) is also keeping a lid on the share price.

Harry Hindsight

Google at least brought up a car. Plenty of room for the battery which is nice.

Anyone guess whats going to happen with old cars. There will always be petrol available and as time goes on and gets cheaper than electricity. But Mr Tax of course doesn't want humans to have any life.

daviHard

You're right Paul, Loom is a great little piece of software.

Paul Scott

Hi OsullivanB,

This made me chuckle -

"I think Paul is Paul's boss..."

I am unmanageable, as I'm sure others at Stocko would readily agree! But somehow it works ;-)

Regards, Paul.

StrawberryDreams

Watched Ed's story stock presentation yesterday.I forgot what a great presentor Ed is and very apt considering the action of the pandemic darling Eurasia Mining (LON:EUA) over the last 2 days.From up 70% today by 9:30 on huge volume to ending the day almost 50% down.A lot of fomoing going on there.Avoiding large losses in capital is half the game, but naturally emtions are tough to control at times (even when all the red flags are staring you right in the face sometimes)!Anyone else willing to admit they remember UK Oil & Gas (LON:UKOG) who had apparently found huge amounts of oil somewhere near Gatwick airport?

One day in the not too distant future it will be an Avatar bot whilst Mr Scott is languishing in his pool. Working From Home on a new level.

Is AI for the benefit of us i.e workers, or the bosses. A: latter.

Abel

Looking forward for Friday when they start the unconditional trading. I don't think any of the trading platforms I use (T212, CMC, SpreadEx) will offer the option to start trading until Friday

JohnDoe2378

Sound advice. I try to see days like today as an even better buying opp for some of my higher conviction shares, even though sometimes it's difficult!

That's a Facel Vega, if I'm not mistaken? I see the link from previous posts mentioning "vega".

France's 1960s (?) answer to the Rolls Royce Corniche or Aston Martin, powered by a big American V8. They featured one of these on my favourite TV Show, "Bangers and Cash" recently, and it sold for a very low price of £75k. Smug new owner said he would have paid more than double.

Sorry for off topic. But pictures of gorgeous classic cars always catch my eye, far more than a painting for example.

Did AI write your post? LOL!

I should apologise for LOOM's AI-generated titles, summaries, transcripts, etc, it I didn't bother going through it all to correct some of the nonsense AI generated. As soon as I saw it call the SCVRs the Small Cap Valley Reports, it reminded me that as yet, we have nothing to fear from AI. Because it's not actually intelligent at all, it's incredibly stupid from what I've seen so far. But it can do some fancy things I believe, just not in shares analysis. All automated analysis I've seen has been pretty pathetic, as it doesn't pick up on any anomalies or nuances.

Thanks M! Wish I'd listened to you more carefully when you told me about NVidia ages ago!! Well done you :-)

Raspberry PI looks an interesting float. This is what we need to bring the London market alive again - some interesting new companies!

I've had a brief rummage through the IPO document, but it seems incomplete?

Has anyone got more up-to-date info?

So far, I like the revenue & profit growth. Not sure about the dependence on 2 key suppliers. Also big rise in inventories. I think it might capitalise R&D, that needs a close look.

Sounds like there's good demand, so everyone is expecting a premium open. That's what we need!

Really good point, thanks.

peterthegreat

Hi rdavies. I keep any eye on Indivior (LON:INDV) and the thing that prevents me buying is the heavy reliance on a single drug, Sublocade, to produce growth. Indivior does have other drugs on the market and in development but its success is likely to remain dependent on Sublocade sales for quite a few years to come and this drug is facing gradually increasing competition. Since you are asking for negatives, I would also suggest that the Science section of Indivior's web site shows that it has limited internal capabilities in this regard so is likely to need to buy in new products rather than develop them itself.

ezlifeme

11th Jun

Great little pice of work Paul - How to set up a "filtering" screen away from pure financials the lets you focus on performing financial quickly! I played with permutations of it for ages last night looking for good prospects to DMOR on (D My Own R)

peterg

Not really unbelievable. It was standard practice for retiring DPPs.

Starmers views on the issue for the Beeb were

"Sir Keir said it was "a government pension scheme put in place for DPPs", which was why it needed an act of parliament to bring it into effect.

The Pensions Increase (Pension Scheme for Keir Starmer QC) Regulations 2013, external means the lifetime allowance does not apply to Sir Keir's contributions from his time as DPP between 2008 and 2013.

The legislation means Sir Keir would be exempt from paying additional tax on pensions savings over £1m.

Sir Keir said he had not taken advantage of the tax break, adding: "Nor do I want to."

....

"When we reverse that change the government put in place last week I will be included within that.

"Whatever changes is needed within legislation or anything else, I am very happy want to be and will be in the same position as everybody else in this country."

Boon

12th Jun

Indeed, the domain might have some value. Having been part of several secondary purchases of domain names in prior roles, something like chill.com could be worth at least hundreds of thousands, if not low millions (maybe even more).

If they manage to get the domain name back and if after suspension the shares drop to c£5m market cap, it could be fully "NTAV" backed by the domain name.

Small Cap Value Report (Mon 10 June 2024) - MEGP, STAF. Brief: GMS, BBSN, CHLL, PTY

Holidays

Videos

Mello Monday

Explanatory notes -

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Paul Scott

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