Small Cap Value Report (11 Jul) - BMY, LCG, APH, CAU, SPH, BJU

Thursday, Jul 11 2013 by
11

Good morning. The Futures have gone mad overnight, apparently driven by big rises in China, with the Shanghai Index up 3.7% overnight on hopes that the Chinese Govt will "introduce supportive measures". Well that's what they have just said on CNBC anyway!

So we're currently looking at a FTSE 100 opening up 106 points at 6,600. So we've had a lot of volatility lately. The other striking move is that Gold has risen $32 to $1,292, so I've no idea what's going on there - but presumably because of the inverse relationship between the price of Gold, and the market perception of the value of paper currencies. So expectations of more QE is probably what has pushed up the price of Gold.

So I'm looking forward to a good day on the markets here.

There are about 10 announcements that look of interest to me, mostly trading statements, so I'll crack on.

 

 

Although it's a large cap, I must mention that Gulf Keystone Petroleum (LON:GKP) have announced a webcast of their recent investor day. I'm all for this kind of thing. Investor relations is changing, and increasingly companies are communicating better with their private investors, via the web. This is great, as it levels the playing field between Institutions, which traditionally get excellent access to management & information, and private investors, who often find it difficult to get hold of broker notes, don't have time to attend meetings in person because of having day jobs, may not have the confidence to telephone Directors, let alone actually be put through to them.

So I salute any attempts by Listed companies to disseminate better information to the private investor base - e.g. through commissioned research notes (Equity Development, Edison, etc), webcasts of management results presentations, putting presentation slides onto their websites, audio/videos of results presentations & general introductions to the company, communicating with Bloggers & journalists, conference calls & webinars, attending meet the management sessions (e.g. Mello events, ED Investor Forums, investor shows), etc. These are all excellent methods of communicating with private investors.

Building a private investor following using these methods is highly beneficial, as we create the liquidity, set the price, and narrow the spread. Each private investor that is interested in a company will usually trade multiple times during the year - the smart investors…

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Bloomsbury Publishing Plc is a global publisher. The Company is involved in the publication of books and other related services. The Company operates through four publishing divisions: Adult, Children's & Educational, Academic & Professional, and Information. These divisions derive their revenue from book publishing, sale of publishing and distribution rights, management and other publishing services. It specializes in the humanities and social sciences, and publishes over 1,000 books and digital services each year. The Company's digital products include Berg Fashion Library, Bloomsbury Collections, Bloomsbury Fashion Central, Churchill Archive and Drama Online. The Company's subsidiaries include A & C Black Limited, Bloomsbury Publishing Inc, Bloomsbury Information Limited, Bloomsbury Professional Limited, Bloomsbury Australia PTY Limited, The Continuum International Publishing Group Limited and Osprey Publishing Limited, among others. more »

LSE Price
171.5p
Change
 
Mkt Cap (£m)
129.2
P/E (fwd)
14.9
Yield (fwd)
4.1

London Capital Group Holdings plc operates through its principal subsidiary, London Capital Group Limited. The Company's core activity includes provision of spread betting and contracts for difference (CFD) products based on financial market products, such as futures, equities and foreign exchange. The Company provides online trading to private, retail and professional clients. The Company's operating segments include UK financial spread betting and contracts for difference (CFDs), and institutional foreign exchange. The financial spread betting and CFDs, United Kingdom segment is engaged in the provision of the spread betting and CFD products. The institutional foreign exchange segment earns commission income generated from the clients' foreign exchange trading. The Company offers retail customers to trade foreign exchanges, indices, shares and commodities on MT4 platform. The Company also offers Introducing Broker and White Label solutions. more »

LSE Price
2.63p
Change
 
Mkt Cap (£m)
10.0
P/E (fwd)
n/a
Yield (fwd)
n/a

Alliance Pharma plc is a United Kingdom-based specialty pharmaceutical company. The Company is engaged in acquisition, marketing and distribution of pharmaceutical products. The Company operates in various business areas, such as Hydromol, secondary care, community and consumer products, established products and international. The Company's therapeutic areas of focus include cardiovascular, central nervous system, child health, consumer health, dermatology, endocrinology, gastroenterology, obstetrics and gynecology, oral health, oncology, stoma care, toxicology and travel health. The Company's product categories include prescription only medicines, over the counter medications, medical devices, cosmetics and nutritional supplements. The Company's products include SkinSafe, Lift Plus, AbsorbaGel, DeoGel, LaVera, ClearWay, Gelclair, ImmuCyst 81mg, Hydromol, MacuShield, Lypsyl, Anbesol Adult Strength Gel, MolluDab and Ashton & Parsons Infants' Powders. more »

LSE Price
47.75p
Change
2.7%
Mkt Cap (£m)
219.8
P/E (fwd)
11.4
Yield (fwd)
2.9



  Is Bloomsbury Publishing fundamentally strong or weak? Find out More »


5 Comments on this Article show/hide all

Fangorn 11th Jul '13 1 of 5

Gold up,futures up on the Bernanke dovish speech apparently PP. Putting a knocker on September QE Tapering...all highly amusing watching the Fed say one thing one day, then change their tune the next when markets wet themselves.

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PlayDumbh 11th Jul '13 2 of 5
1

Re BrainJuicer - Paul said "There must be lots of other similar companies competing in the same space too"
Yes there are. A related one is YouGov which you are sure to have come across in the news stories (lots of them commission or quote YouGov for survveys). They claim to be UK pioneers in online market research space with a large panel of people in various demographics who take surveys and get paid for it. Founders still with company (well one left when he was elected an MP for Stratford-upon-Avon). I held them 4 years back.

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ericb 11th Jul '13 3 of 5
1

LCG have restated their forecast:

OLD:The Group is expecting to report that adjusted profit before tax from continuing operations for the six months to 30 June 2013 will be in the region of GBP3.1m compared to GBP2.1m for the same period last year and a loss of GBP2.3m for the second half of last year.

NEW: The Group is expecting to report that adjusted profit before tax for the six months to 30 June 2013 will be in the region of GBP3.1m compared to GBP2.1m for the same period last year and a loss of GBP2.3m for the second half of last year. Adjusted profit before tax from continuing operations is expected to be in the region of GBP3.1m versus GBP2.7m for the same period last year.

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Paul Scott 11th Jul '13 4 of 5
1

In reply to ericb, post #3

Well spotted ericb, and thanks for posting.
Therefore actually London Capital Hldg (LON:LCG) delivered an underlying improvement against last year of 15%, not the 48% they originally said!

Regards, Paul.

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madmix 11th Jul '13 5 of 5

Communisis (LON:CMS) is worth a mention today, given their "Significant contract win with Lloyds Banking Group".  How significant? "The Company's annual production volumes (for Transactional Communications) will double on an annualised basis" and "Substantial revenues will be generated for Communisis over the ten year term of the contract."

Whilst the shares are up 23% today, I think there could be more to come.  They had £20m net debt at 31st Dec 2012, but have since raised £18.9m in a placing/open offer.  At 67p, the shares trade on a current year PE of 13.4 (consensus eps is 5p).  But given the size of this contract win, other recent large contract wins (BT & Nationwide) and a restructuring which is set to save £4m per annum from next year, there is plenty of scope for broker upgrades from 2014.  I suspect any such upgrades will come following the Interim results on 1st August.

FWIW, I've held Communisis for 3+ years, but topped up on the news today.

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About Paul Scott

Paul Scott

I trained as an accountant with a Top 5 firm, but that was so boring that I spent too much time in the 1990s being a disco bunny, and busting moves on the dancefloor, and chilling out with mates back at either my house or theirs, and having a lot of fun!Then spent 8 years as FD for a ladieswear retail chain called "Pilot", leaving on great terms in 2002 - having been a key player in growing the business 10 fold. If the truth be told, I partied pretty hard at the weekends too, so bank reconciliations on Monday mornings were more luck than judgement!! But they were always correct.I got bored with that and decided to become a professional small caps investor in 2002. I made millions, but got too cocky, and lost the lot in 2008, due to excessive gearing. A miserable, wilderness period occurred from 2008-2012.Since then, the sun has begun to shine again! I am now utterly briliant again, and immerse myself in small caps, and am a walking encyclopedia on the subject. I love writing a daily report for Stockopedia.com on most weekday mornings, constantly researching daily results & trading updates for small caps. Cheese! more »

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