Daily Stock Market Report (Mon 19 May 2025) - DGE, CER, MCG, BTC, KNOS, SDI, CAM, KRM, IMM

I'm not overly confident in the next few months 

Given the lack of discussion, today seems like a good day to provide the Stockopedia analysts with some feedback. I continue to like the new format a lot, especially now that the coverage is extended to mid and large caps. Both the quantity and quality of output continues to be excellent and you even find time to respond to comments and write a “week ahead” article. 

Keep up the great work everyone, it is appreciated, even if some, such as myself, rarely add to the discussion.

Cheers
Simon

Completely agree.

My reasoning being 

1.  over june, I understand USAians will see empty shelves as chinese container ship volume has dropped and the stock they have in place runs out.  The effects roll from the pacific ports (west) to the atlantic (east) over a few weeks.

2. the US tariffs have not gone away.  This is pretty much the addition of a 10-45%  (this changes daily)  VAT rate on almost all physical imports. Importers are not going to drop prices by 10-45%.  There will be an inflation shock in the US.

... and no-one seems to be worried (yet).  My theory is no-one (sane) stands in front of an oncoming train, but a steamroller is different.

Haha - all I'll say is today is a day of company results that do not interest me, I checked and read as usual - but you can only write about what is happening daily on a Daily market update and not much of interest today for most of us I reckon!

One thing that is still ongoing news and somewhat interesting as a neutral bystander is that M&S is STILL closed for business online. I was waiting to buy a shirt from them but now I find myself being hesitant to buy even when they do get back up and running...can they really be trusted with my card details? I have been a regular shopper with them for years but pretty nervous to buy from them again now.

Also small caps been on a very good run, time of year that traditionally isn't the best so can't see too much more upside. But I'm probably very wrong 

I agree, Brilliant Leader. My small cap days are long gone and the previous emphasis on small and speculative wasn’t for me. I am now into maximising my dividends. Large cap financials, REITs, income trusts, energy stocks are what float my boat. I like to sleep soundly at night and enjoy spending my income. 

Hi Graham,

Thanks for the coverage of Mobico (LON:MCG) - re leverage I thought this was higher than 2.8x - was this to do with the perpetual bond? 

Thanks and kind regards,

Michael

FWIW I feel many of  the UK small/mid cap valuations have rebounded to the extent where upside is limited. However I could still argue the case that US investors may continue to migrate to the better value on offer here.

I also have an “indirect interest” in Diageo (LON:DGE) …. hic!

Am a little cautious  but one has to balance the value still evident in UK small/medium caps with the US macro picture of likely higher prices and rising bond yields . A good lead indicator to monitor is the US 2yr and 10yr yields ....

It’s a David Lenigas stock should always tell you all you need to know!

I still remember Billions of barrels of oil I at Gatwick airport  

Absolutely Graham no issues with the quality of the output as you say probably due to the lack of the usual 50-100 mid cap faves not reporting anything today.

While I do have a mainly serious diversified portfolio of  stocks from several geographies, I also continue to track the field of small (even very small) UK caps to tray and catch the occasional diamond as it emerges from the (very!) rough. 

I do it in the expectation that you occasionally hit a blinder and it helps the ginger up the main portfolio, but also it is intellectually stimulating to try and work out what might be about to actually collect the jam after a bunch of tomorrows. To keep my optimism grounded the watchlist portfolio is called Serial Disappointers.

It has about 25 names, so all the usual suspects:  Hardide (LON:HDD) Chesterfield Special Cylinders Holdings (LON:CSC) , Kromek (LON:KMK) Invinity Energy Systems (LON:IES) ITM Power (LON:ITM) Surface Transforms (LON:SCE) Ilika (LON:IKA) SRT Marine Systems (LON:SRT) , Eagle Eye Solutions (LON:EYE) , EnSilica (LON:ENSI) Velocity Composites (LON:VEL) Rosslyn Data Technologies (LON:RDT) .. and a number of your other favourites!

And recently there some signs of jam! VEL looks like it is getting into regular production, as is ITM Power. SRT is experienciing a good run, and Ensilica orders are looking strong (if they can get past some cash constriction. even Cirata (formerly Wandisco!) seems to be climbing away from the danger zone. SDI, as discussed here, has now climbed out of several years of swamp diving to become a "Super Stock".  Even as several names are starting to shine, or at least glow, the portfolio title continues to remind me that I can expect problems....but still.

I agree and think that the tariffs will result in a US slowdown in Q2/Q3, which will have some spill over into the U.K. economy. Given the fiscal handcuffs that Rachel has put on herself we can’t count on much help from the fiscal side, but this should result in faster interest rate reductions than currently priced in. This should be feasible as a growth slowdown, lower oil price, stronger GBP, and slack in the U.K. labour market should keep inflation in check providing more optionality for the BoE. Lower interest rate environment should be positive for REITs, infrastructure funds, house builders, mortgage providers, building products, etc. Just my 2 pence…

I'm not sure why Rachel doesn't try and gently persuade the B of E to slow down on the rate of QT, by all counts the losses each month are eye watering rather than just letting the bonds roll off at maturity and it pushes gilt yields higher.

This alone would give her a few billion extra to play with as far as her ever decreasing headroom goes.

Hi everyone,

I would be interested to hear your comments on Vertu Motors (LON:VTU) (I hold). I am a bit concerned with the economy of the country in general, therefore buying new cars is not everyone’s first priority but I still like the discount to NTAV and the significant buybacks. Any comments would be hugely appreciated.

Thanks in advnce

Unless you've been living under a rock and don't know who David Lenigas is? I'm guessing its not a good thing to have him involved, lol

Seems to me you have an almost impossible job sir . I, for one, appreciate your team’s work

Kromek ffs. Wonder if Simon Thompson is still pushing them?

Hi angelogr,

Vertu Motors (LON:VTU) gets a mention on this week's Small Caps summary substack.

https://open.substack.com/pub/...

maybe it's useful to you?

Regards,

Jon