Timestamps
Fund manager Josh Northrop of Whitman Asset Management takes me through his latest thoughts on the markets alongside highlighting 14 investment ideas.
00:00 Equity outlook
08:40 Netcall
14:25 Cerillion
19:10 Tracsis
23:10 Auction Technology
30:00 Advanced Medical Solutions
35:05 CVS Group
40:30 Porvair
43:20 Johnson Service Group
48:55 Calnex Solutions
53:05 Bloomsbury Publishing
58:30 Macfarlane
62:40 RWS Holdings
66:45 Restore
70:50 Victoria Plumbing
74:25 When to sell?
Stocks owned : EQLS, AGFX, Pfizer, Bristol Myers, Roche, WATR, VCT, MBH, ASTO, IOM, TR25, ESYS, ELCO, IHC, Paypal & AOM Elsewhere, I'm also paid by Vox Markets (as a contractor) to interview interview fund managers, capital market experts & companies (re EQLS, VRCI, BELL, FIN, AVG, AVCT, LLAI, VLG, FADL, SUP, ELCO, LORD , MPAC & ONC). I believe all these stocks are clients of Vox.Lastly my 24 year HIT RATE is only 62%. Meaning 38% of the time I lose money (ie often wrong) - albeit my winners are (on average) 1.5x larger than my losers. Please Do Your Own Research. more »
Paul - thank you for posting this here. Another excellent and insightful discussion. Quite rare for Macfarlane (LON:MACF) to be covered (I hold) but it seems to fit his style well. Very impressed. As I was with your recent discussion with Rosemary Banyard. I will be relistening to both of them. Amazing how much I miss the first time around!
cheers
Mark
Paul - Excellent interview and insight.
I concurr with Josh's Bloomsbury Publishing (LON:BMY) comments (I hold), so I have cleaned up Youtubes auto transcript for my records. A copy is below.....
Bloomsbury keeps going from strength to strength. It started with the Harry Potter series which has continued to do well, but they have another absolute darling author in Sarah Mass, which has really turbocharged the business.
We think the attractive part is the digital resources division and this has been something that they have been developing over the last few years. Effectively it's online publishing content for universities and academia, principally in the humanity space which is where Bloomsbury are very strong. This relatively new division is doing well with subscription revenue of about £15 million annually. There is an opportunity to cross sell by adding more content to the platform. As that division grows it will pull up the margins of the group and it'll pull the rating up of the stock.
The publishing side of the business is on a low teens multiple whereas the digital resources with its sticky recurring revenue should be on a high teens multiple and if you think its going to grow quickly then that's going to pull up the multiple of the group.
I think at the end of this year they'll have an excess of £60 million in net cash so that gives them the firepower to do deals which will be inherently accretive and drive upgrades to the valuation. Bloomsbury is on about 16x, but if you take the cash off because it's 15% of the market cap, then it's more like 14x. All of a sudden, you're sat with a multiple that's reflected in a traditional book publisher as opposed to a business that's got a digital side. With another couple of years of growth and an acquisition or two digital could be a meaningful contributor to group profits.
