Small Cap Value Report (Weds 28 Aug 2024) - WINE, TUNE, PCIP, SEE Brief: RYA, EZJ, JET2, NXT, BDEV, BNZL, IDHC, AQX, ARB

28th Aug by Paul Scott

69 comments 7955 reads

Good morning, it's Paul & Graham here!

All done for today, see you tomorrow!

Update from Graham: Hi everyone, I have a brief interview tomorrow with the CFO of FTSE-250 hotel group PPHE Hotel (LON:PPH). If you have any questions you'd like me to submit to him, please let me know in the comments below. PPHE is a company I've been positive on, e.g. when it announced its most recent share buyback in July. So I'm looking forward to an interesting chat with the CFO, and some reader questions would be appreciated - cheers!

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, and sometimes wrong, because it's anybody's guess what direction market sentiment will take & nobody can predict the future with certainty. We are analysing the company fundamentals, not trying to predict market sentiment.

We stick to companies that have issued news on the day, with market caps (usually) between £10m and £1bn. We usually avoid the smallest, and most speculative companies, and also avoid a few specialist sectors (e.g. natural resources, pharma/biotech, investment cos). Although if something is newsworthy and interesting, we'll try to comment on it. Please bear in mind the "list of companies reporting" is precisely that - it's not a to do list. We typically cover c.5 companies per day, with a particular emphasis on under/over expectations updates, and we follow the "most viewed" list of readers, so if you're collectively interested in a company, we'll try to cover it. Obviously with the resources available, we can't cover everything! Add you own comments if you see something interesting, and feel free to discuss anything shares-related in the comments.

A key assumption is that readers DYOR (do your own research), and make your own investment decisions. Reader comments are welcomed - please be civil, rational, and include the company name/ticker, otherwise people won't necessarily know what company you are referring to, if they are using unthreaded viewing of comments.

What does our colour-coding mean? Will it guarantee instant, easy riches? Sadly not! Share prices move up or down for many reasons, and can often detach from the…

Unlock with Email

Unlock with Google

Already have an account?
Login here

ACounsell

28th Aug

Hope that works out. I sold Lloyds Banking (LON:LLD2) when the furore over car financing investigation broke. The shares subsequently rose by 25%+!!

Revs8

I'm getting email alerts as usual.

SCI20

Thanks Revs8. Hopefully someone at Stocko will see this thread.

simoan

Thanks Simoan sentiments appreciated will try and do, I am a long term holder of stocks and don't do day trading just find frustrating when one of the few stocks that I have that has appreciated in value drops!

But nothing has really changed, just the price. The facts are the same. You may find reading the latest memo from Howard Marks useful in this regard:

https://www.oaktreecapital.com...

Tommy H

I am getting alerts, flag again through the green button bottom right!

Pimlico on Thames

Creightons (LON:CRL) is a United Kingdom-based company that is engaged in the development, marketing and manufacture of toiletries and fragrances,
which includes the development of brands. The Company offers a range of
toiletries, skincare, hair care, fragrances, and home fragrances. Its
operations are organized into three business streams: own branded
business, private label business and contract manufacturing business.

This stock peaked at 130p on the pandemic demand for cleaning and self pampering, after which it slipped back to 2017 - 2019 range following PW in July 2022 when dividend was suspended. MD sacked Nov 2023 and Chair/CEO retiring in March 2024. Latest FY announced in July saw loss due to write down of pandemic acquisition and dividend reinstated.

I hold a small position and see this pausing at 50p as it recovers.
I also hold Warpaint London (LON:W7L), which I top sliced at 580p after the recent pull back

Westway001

Sorry to nitpick but SDLT on £600k is £17,500 in England.

Peter T

Creightons (LON:CRL) Thanks Pimlico on Thames for adding a proper description of what CRL do and your other comments. I wonder if you caught their results presentation on PIworld a few weeks ago? MD Pippa Clark impressed I thought. Worth a watch and I can see why Schroders have bought in. (I hold)

Tried that again yesterday. No reply. I guess the office has shut down for August.

murrb

Thanks for putting me right

proffittpar

Many thanks for responses simoan and others advice much appreciated.

Lochinver

Bullhead ( still struggle to type that awful posting name)

After a lifetime in building and selling SME businesses, one of the mantras I was told was “ never make any major commercial decision based purely on taxation considerations”

And that applied equally to one’s own personal financial situation .

One of the best bits of advice I ever received.

But each to their own, of course.

I get your gist , but can you name any material businesses in the utility , transport and house building sectors that have been ‘ wiped out’ by government decisions ?

As BnB says, they just accept the new status quo, adapt and get on with it . Its life , deal with it. As others have to do in far more difficult circumstances

But balance is required. Pension contributions are indeed handsomely incentivised.
Rewarding already well off individuals with significantly advantageous tax breaks seems to me to be a very strange policy and unfair to society as a whole. And I speak as one of those individuals.

I’ve just clambered off the floor back onto my chair !

I AGREE WITH B …!! …( cant bring myself to spell out his whole posting name )

Significant tax breaks, above the norm for most people, cannot in any way be justified and have to be abolished. Already reasonably well off/ better off people simply do not need that extra help. Many others in society, less fortunate, do. Its as simple as that.

Warming everyone up. The oldest trick in the book

Think the business phrase is kitchen sinking.
Happens all the time . Nothing new and who can blame them ?

Rolls Royce. New CEO - “ we are a burning platform” .
Share price quadruples over next couple of years .

Boon

29th Aug

Same, last one on Tues 27th received.

(However, I don't know if this is just an aberration and other alerts have been tripped but not emailed...! I don't see any other price alerts in the top right bell icon on the Stocko website though, so assume no other shares I have alerts for has tripped).

bullhead

4th Sep

It’s only been a couple of months mate give it time

One of the biggest things that affect investment by an industry is government policy like below

https://www.theguardian.com/bu...

ezlifeme

Capex allocation within companies is a competitive internal market - Boards tend to award to projects and geography's that offer the best return (Naturally). If you have found natural resources, they aren't going to go away, so why not wait as long as is needed until you can get the best price from them - either by developing or selling. Politicians very rarely have that long a time frame with their "statement" sound bite policy announcements

Small Cap Value Report (Weds 28 Aug 2024) - WINE, TUNE, PCIP, SEE Brief: RYA, EZJ, JET2, NXT, BDEV, BNZL, IDHC, AQX, ARB

Explanatory notes -

Unlock the rest of this article with a 14 day trial

About the Author

Paul Scott

69 comments

Unlock the metrics for all these stocks and more...

Unlock the metrics for all these stocks and more...