Good morning! I'm surprised to see investors putting more money into Digital Barriers (LON:DGB). It looks a basket case to me, based on the terrible historic figures, and poor quality acquisitions (in my opinion). Yet somehow they've managed to sustain a £75m market cap, despite years of losses, and forecasts that can't even stretch to breakeven for the year-ending 31 Mar 2015. They're raising another £18m at 140p per share. The Directors are putting up £413k of their own money, but I'd be very surprised if anyone else putting money into this Placing is using their own money. Career risk, and all that.
Anite (LON:AIE) has put out another profit warning. The market cap was £338m yesterday, so that's more a mid cap to me, but at this rate it'll be a small cap - looks like a nasty one, as the shares are down 32% to 76p. I'm not sure what they do - something to do with mobile handset testing, and travel. If I hear the word "solutions" more than once in a company description, I just switch off.
I am intrigued as to why shares in Vianet (LON:VNET) suddenly opened up this morning, on no news from the company, and are now up 8% at 76.5p. In situations like this, I always turn to "The Publican's Morning Advertiser", which is renowned for keeping its finger on the pulse. They have some interesting news about something Vince Cable said last night, about the proposed Statutory Code, and this seems to be moving in the right direction, possibly, for Vianet. See this article.
NetPlay TV (LON:NPT) has issued a positive-sounding trading update. Actually, I haven't read it yet, so was just assuming it was positive, as they always are. Let's have a quick read ... yup it's all good, and they are confident of meeting full year expectations.
What they're not so keen to talk about is the potentially major impact on profitability from changes in taxation of online gaming companies. Worth looking at the Director selling of shares too, over £3m chips cashed in over the last 12 months, which is telling me all I need to know.
I don't know why shares in Spaceandpeople (LON:SAL) have dropped so sharply recently as there's not been any news from the company. Although there was a slight issue with ambiguous wording in the last results statement, which might have rattled one or two investors possibly? Anyway, I've treated it as a buying opportunity and have topped up this week. The company should deliver around 10p EPS this year, and pays a good dividend, so at 109p they look good value to me. It's not the sort of share that is likely to shoot the lights out, but should continue being a decent growth company, in a niche pretty much of its own.
There's been plenty of volume in recent days, almost all retail buys, so looks like there's a seller offloading in the background. Once they are finished, then hopefully it should go back up again. As always, this is just my personal opinion, and please DYOR.
I'm keeping today's report short, but brutal. There isn't really much else to report, very quiet for results today.
(of the companies mentioned today, Paul has long positions in VNET and SAL, and no short positions.
A Small Caps Fund to which Paul provides research services also has a long position in SAL)