Good morning from Paul & Graham! Today's report is now finished.
It was great to hear all your feedback, in yesterday's unusually busy comments section. We read, and take on board, all points of view, and it's good to see there are still plenty of investors out there still interested in small caps.
I've been through a few bear markets over the last 25 years, so I know that things can get a little fraught in the bad times. I bet the vast majority of us wished we'd done a lot of things differently over the past year. That's life isn't it, we just have to learn from our mistakes, and then gradually forget those learnings in the next bull market, which is my speciality!
We cover about 500 companies here, from numerous sectors, so there's something for everyone, and you can hopefully use our reviews to do more thorough research of your own. That's the idea! In normal markets, we spot loads of good stock ideas, and we warn people away from lots of dodgy things too. But ultimately, the buy & sell decisions are entirely yours.
In a bear market like now, most small caps have done badly. That's often when the best buying opportunities emerge for the next bull market, in my experience (e.g. I had multibaggers galore in 2003). So we'll try to sharpen our focus, but essentially the show goes on, and we'll do our best. You'll continue to be able to pick ideas, and details from our reports, to add to your own research process. Agree or disagree with us, when it comes to opinions. Sometimes we're right, sometimes we're wrong - same as everyone.
Agenda -
Paul's Section:
Firstly a few catch-up items -
Card Factory (LON:CARD) - I review its interim results, and can see both bull and bear arguments. Overall though, the weak balance sheet, and total reliance on hefty bank facilities, doesn't give me enough confidence to want to invest as we enter a recession.
Redde Northgate (LON:REDD) - a positive update, and a strikingly cheap valuation, with the dividend yield now above the PER - not something we see very often for businesses that are not in terminal decline. The valuation is now fully asset backed too, on a NTAV basis. Looks a smashing value buying opportunity to me, providing nothing…
