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20th Jun '23 by gmtrader

22 comments 2204 reads

Update: 11/09/2024

iomart (LON:IOM) having spent a year watching this share decline in share price from when I sold on 10/08/23 I have bought back in yesterday. It’s a pretty boring share tbh but has been steady (apart from the share price which has clearly been in a steady decline). I have only bought a starting position as I never go all in on a declining share price. New ceo has been in place now for a year who wishes to accelerate the company, but this takes time. Overall it’s steady, growing revenues and profits but with a slight decline in operating margins while changes take place. While it does have debt of £24m, this is quite manageable and has fcf of £16m. Whether their “bigger better bolder” policy comes to fruition who know, but they have been in the business of hybrid cloud, cyber security and secure connectivity for some years and are well established. With this sector only likely to grow in the coming years it’s not a bad company to have some exposure to tech.

Broker target price is 240p, which is over 100% uplift from the current price of 114p.

It has now come down to a price where I see it as too cheap. Currently market cap is approximately the same as the book value of the company which makes it now a possible target for a take over. The share price yesterday hit previous lows from 2022-2023 where there is strong support. RSI and STOCH are very low. Next update from the company will be in October.

The latest news from the company can be found here showing installation of solar panels which should help cut costs. https://www.iomart.com/updates...

CML Microsystems (LON:CML) 450p 20/06/2023

I do not hold, previously sold at 550p.

Recommended a few times over the last year or so in Investor Chronicles and a positive review by Paul Scott back in March. No recent bad news to move the sp. Probably just dropped from profit taking. Looking to buy back in between 425p-420p. Market cap of £69m with cash of £24m. Revenues increasing as well as profits. Results due on 27/06/2023. Likely a dividend in August as well as December.

Retraced from top of upward channel with bottom of channel around 420p (ish). Below the 50ma but…

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Rusty2

11th Aug '23

I do hold CML Microsystems (LON:CML) not because of the chart. Only a small opening position after the last update.

gmtrader

I bought because I like the company and think the current price will be higher in time. The chart just gave me an idea of when to buy and sell.

RJS89

15th Aug '23

Springfield Properties (LON:SPR) is definitely deep value, as in ben graham/walter schloss/early buffett type value! it's trading so cheaply that you could buy the entire business and it's assets/inventory at a discount price. in fact, you could build in a 50% discount on the current inventory and you'd still have enough assets to wipe out all liabilities and walk away with some cash in hand...

that said - and your experience may be different to mine? - there doesn't seem to any real focus on this sort of investing in the UK? perhaps not enough people have read their intelligent investor or security analysis...

if i had to guess why, i would suppose it is because the companies are (almost always) micro-caps, they look like dog-shit, and the illiquidity is off the charts (i.e funds and institutions can't really enter)

would appreciate your thoughts!

Interesting point about investors habits.
Quite clearly the UK has been cheaper on the whole when it comes to its companies listed. And they have been on the decline for 5 years or more mainly due to brexit and now the general economy. I feel investors have in the last few years changed their attitude to investing and take less risks, avoiding stocks that are in decline and moving more to quality and momentum investing.
As for Springfield Properties (LON:SPR) it is in a sector that is very cyclical and tends to run on lower PEs and with SPR having debt (about £68m) which is unusual for a house builder as most tend to be cash rich, it’s pushed them into even deeper value compared to even its sector.

Revs8

16th Aug '23

Volex (LON:VLX) recently broke out above 300p and is now retesting previous resistance at 330p which has now become support. Brokers recently increased targets and the news flow is positive. Stocko likes the company and so does Paul. I can se this one going much higher than 399p which was my target when it broke out above 300p.

Luceco (LON:LUCE) is an interesting chart. I've posted this long term chart because it looks like a classic bubble chart with the euphoria turning eventually to depression. It now looks like the SP is in the process of returning to normal. The directors have been buying earlier in the year and the trend now appears to be upward. SP trying to break out above 130p after which it should move to test the resistance at 154p. Stocko rates it at 95. Results on 5th September.

Vesuvius (LON:VSVS) Stocko rates this at 100. All the metrics look good and news flow is positive. The SP has formed a long base and is retesting previous resistance. Assuming the resistance holds then next leg higher could move towards the high in early 2022 at around 500p.

Renold (LON:RNO) Paul has been highlighting this turnaround story for a long time. The SP has formed a long base and is now trying to break above 31p. The news flow continually improving and stocko ranking is 99. The company has a large pension commitment that is gradually becoming less of an issue. This is an excellent long term VM investment IMO.

I should add that I hold all of the stocks that I mentioned below with Volex (LON:VLX) being my largest holding.

Snowbum

Like you I also think Springfield Properties (LON:SPR) is a an interesting company, I took an entry after the last TU but ditched it fairly quickly for around a 3% loss after there was no follow through. However I have been tempted to have another go at it as the new price is even better! But this time I’ve bought it for my SIPP rather than ISA as the time horizon is significantly different in terms of how I manage these two accounts.

Agree with you on longer term. I remember back earlier this year saying I thought house builders could have a lower low later this year. I still believe it could. I am not so sure Springfield Properties (LON:SPR) will dip too much lower as it has not had the same rise as the other builders has had. Talk of interest rates almost certainly having another 0.25% rise and possible 0.5% could well be the catalyst for the builders to drop more. Still, very good value at current prices but it does look a longer term play for sure.

Thanks for adding these stocks. I’ll have a good research on them this week.

Benson212

21st Aug '23

Interesting chart formation at Senior (LON:SNR). Price is tightening at the right hand side of the base. Fundamentals are also trending positively.

Volume has dried up and if it breaks out on volume, there could be a trend continuation here.

4th Dec '23

Very interesting move on Gold upon open last night, moving above previous all time highs then retracing.

Resolute Mining (LON:RSG) (i hold) looking very interesting now. Will be debt free now for first time in many years and reducing AISC this year to improve profits. The chart shows it holding the upward channel after it fell off from previous breakout. Broken above the 50 and 200 ma. Just needs the 50 to move above the 200 for a golden cross pattern. Hopefully it can hold the 23p resistance and then a move to 33p, top of the channel.

30th Dec '23

Resolute Mining (LON:RSG) I am very bullish on this company and it is my biggest holding at 23% of my pf. Yes, I know I'm top heavy!

While the company did downgrade production for this year from 350k oz to 330k-340k, production is set to grow over the next 2 years and the company has 11m oz in the ground which will keep it going for some years to come, while it also has a large area to explore for more.

ASIC costs are currently at $1480 and they plan on reducing this by a couple of hundred in the next 2 years.

Resolute Mining (LON:RSG) did have a large debt but this has now been paid off, mostly from a raise 2 years ago which increased the amount of share. The company is now cash positive.

The CEO, Terry Holohan has years of experience and was bought in 2 years ago to turn around the company. Normally he would leave after a turn around, but he sees so much potential he intends to stay for the foreseeable future.

Of course, gold miners depend a lot on the price of world gold and no one knows what price that will be in the future, but it is doing well at the moment and I see a 2300 gold price being hit in the coming year.

Technically Resolute Mining (LON:RSG) is looking strong. It is in an upward channel, above the 50 and 200ma and a golden cross has just formed. There is also a new cup and handle pattern formed. It looks to be holding a support area at 23p. It may break down to the bottom of the trend channel at 20p, but I do not see it going lower than that.

This is the latest presentation by the CEO:

As I said, I am bullish on this, but you need to do your own research. I would be interested in hearing other investors thoughts on this company, especially negative points and views.

My short term target would be the top of the upward trend channel at 34pish, where I may top slice, or may not depending on my view of he company at that time. Longer term I am aiming for a price target of 70p.

?si=ZyuKDn2Q_TFGXKnr

1st Jan

Here is a more in depth presentation.

Cowie19

6th May

Liking RSG , $2300 gold reached, have gone long here.

CML Microsystems (LON:CML) went right down to 300p but is back to over 400p, l have sold out now. Probably will go up some more, but l don't want to risk it. I should have averaged down around 300p, but difficult to know what is going on, in some of these small caps.

11th Sep

Update on iomart (LON:IOM) in main blog. Appreciate as always peoples views.

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