Daily Stock Market Report (Mon 20 Jan 2025) - RCH, SDG, JDG, CAPD, CLIG, VANL

20th Jan by Graham Neary

46 comments 6139 reads

Good morning!

11.10am: wrapping up the report there for now, thank you.

Spreadsheet accompanying this report (updated to 10/1/2025)

Companies Reporting

Name (Mkt Cap)	RNS	Summary	Our view (Author)
ME International (LON:MEGP)	Extension with Morrisons	Contract extension for photo booths and laundry machines.	GN’s view: this was issued through REACH, so it’s not material.
PRS Reit (LON:PRSR) (£606m)	Q2 Update	5,437 new homes (LY 5,264). 99% rent collection. LfL rent up 11%. Strategic Review/Sale Process.
M P Evans (LON:MPE) (£501m)	Crop & Production update	1.6m tonnes in 2024 at an avg mill-gate CPO price of $823/tonne
Judges Scientific (LON:JDG) (£489m)	TU	2024 results expected to be in line with expectations.	AMBER (Graham) Remain cautious on this. SDI more interesting right now.
Cerillion (LON:CER) (£466m)	Major contract	“Supports” existing market guidance.
Midwich (LON:MIDW) (£299m)	TU	Adj PBT *“slightly below”* market expectations.
Reach (LON:RCH) (£229m)	TU	Strong Q4. FY results to be ahead of expectations.	GREEN (Graham) Some more puffs to be had from this "cigar butt" stock?
City of London Investment (LON:CLIG) (£192m)	TU	Net outflows of $564m in HY to Dec 24, AUM of £9.9bn.	AMBER/GREEN (Roland - I hold) Outflows continue, but I think the 9% yield looks safe for now.
Capital (LON:CAPD) (£162m)	TU	FY24 revenue of $348m, “*marginally below”* guidance of $355m-$375m.	AMBER (Roland) Teething problems in N. America have caused revenue to miss exps.
Bango (LON:BGO) (£83m)	TU	2024 rev $53m. EBITDA >$15.2m. Exps not mentioned; broker’s EBITDA forecast was $15.8m.
Van Elle Holdings (LON:VANL) (£42m)	Contract	8yr/£30m electricity transmission schemes contract award.	GREEN (Graham) No change to f/cs at Progressive, no change to our stance.
Sanderson Design (LON:SDG) (£38m)	TU	Profit warning. Adj PBT now expected to be £4.0m-£4.8m vs c.£7.5m previously.	BLACK / AMBER/GREEN (Roland) The shares could be entering value territory.
Pod Point group (LON:PODP) (£26m)	TU	Adj EBITDA loss in line with guidance at c.£(14m). FY25 results will be below expectations.
XLMedia (LON:XLM) (£25m)	Tender offer	£16m will be returned to shareholders at 11.5p per share (24% premium).
Checkit (LON:CKT) (£19m)	Contract renewals and wins	No description given of any changes to earnings expectations.
Croma Security Solutions (LON:CSSG) (£12m)	TU	“Firmly on track to meet expectations.” H1 rev +8% (£4.6m). Cash £4.1m.

…

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John LA

20th Jan

Couldn't agree with you more, negativity is hugely debilitating, it's difficult to see clear sky's with our mainstream media and inept government acting as prophets of doom. At least companies long dollars in will have an uplift

Threepeat

The buy point for me was that Journeo (LON:JNEO) said that they were looking for European certification/ authorisation ( don't know the right word) that would enable them to bid for contracts in Europe. Then they said it had been granted. I'm now waiting for their first contract

I hold

boringchess

Good spot. Guess it doesn't fit the narrative about the labour budget totally killing UK business.

yiannos1

Exactly!

andrewdb

There are genuine use cases for btc:

You live in a country where you do not trust the local currency (India Africa China s america)

You want to make a large cash like payment. $10M weighs 100kg in $100 bills. Won't fit in a carrier bag. Thumb drive fits in a pocket. (russia etc)

You want to receive blackmail

You are concerned about your local currency being debased. (Possibly most countries outside Switzerland)

But yes mostly not legal.

All it takes is for a number of govts to clamp down and the value will crater.

Btc has a large negative intrinsic value and a much larger positive money value (what other people think it is worth)

nzps

same with me please - im @patstrutt1

davidjhill

Hi rmillaree

For what its worth I see Journeo (LON:JNEO) as a multi year compounder so wouldn’t confuse next years analyst estimates with long term growth prospects.

When the old management decided to get out (lack of vision in my view) and new team bought in it took them about 3 years to get the business and technology on the right footing again. Then they added scale with some canny acquisitions and now we are seeing a period of stabilisation again. The Nordics needs a bit of time to expand into other European jurisdictions but this offers some great growth opportunities. Current mgmt talk about getting to £100m of revenues c. Double existing levels. This is of course aspirational but having followed this mgmt team for a while now I have confidence in them.

In the meantime we are at a PER of 11 which isn’t expensive but cash adjust that and it’s more like 8 so hardly a rich rating. I note that they have an increasing ARR component to the business as well now so as this grows I’d expect a bit of a multiple re-rate as well.

Personally I’m not expecting fireworks this year although I do anticipate a beat, but this stock tends to move in steps rather than gradual moves up so I’m not particularly minded to sell and re-purchase either as I will probably miss it. I’ve held since 100p so good compounding return and I can see it doubling or more again over the next few years so meets my target criteria.

Roger Baron

Can I interest anyone in some rather pretty tulips?

The Phoenix

Trump and Elon are going to cash out of this at the end of the next four years in multi billions nice work if you can get it.

Cable is stronger than what it was exactly two years ago!

UK economy is not bad as commentators and media and platforms (especially X) TRY to make it. Liquidity though and innovation still behind.

All the best

dickthedog

Obviously Blackrock don't agree with you about Btc, or they wouldn't have launched a massive ETF?

Bouden54

Not looked at City of London Investment (LON:CLIG) for a while but they have quite a niche strategy focusing on closed-ended emerging market funds (essentially looking for funds trading on wide discounts). For me it doesn't look the most exciting strategy and returns don't look anything special so not suspired they're seeing outflows. I believe there is now also another division following an acquisition a few years ago. I must admit I stopped looking at it a while ago as struggled to get excited by it, but looks decent enough business.

rmillaree

do Blackrock simply not dabble in everything that is legal and can make them some fees ?

Probably correct, but remember most money laundering is done through the system. The whole argument about Btc and illegality is a red herring spread by the likes of Mr Dimon etc. I wonder why.

Harry Hindsight

But not with their money.

It's expensive to buy a condo on Mars.

I'm sorry - looking at the Judges Scientific chart on the right hand side of my screen. This was a big thing on this site top of the tree. Bit like Games Workshop but they bounced the downtrend. Toy soldiers over cutting edge tech.

This has been around longer than the tulip thing and not going away anytime soon. Annoyed that so difficult for us UK'ers to join the party. Of course highly speculative - it's knowing when to get out - to tame the greedy demon on your shoulder with the mini-Buffett on the other.

Sharewallah

Bitcoin is a Ponzi scheme.

I don't disagree but like the out of control western debts in the trillions these stories/situations can run for many more years than one would think possible.

I've generally found liquidity drives markets theres £677 billion in the tga waiting to be drawn down, fed is cutting rates even though inflation not beaten, i'm more leaning that 2025 will be another decent year for most major asset classes 2026 possibly not so much we will know the answer in 24 months.

Roland Head

21st Jan

Hi Tortoise Investor,

I missed your comment on City of London Investment (LON:CLIG) yesterday but you highlight a good point -- the performance of the Mag 7/S&P 500 has made CLIG's products harder to sell. The company has acknowledged this in its commentary.

How long we will have to wait for CLIG's value-led strategy to deliver superior results is the million-dollar question.

Roland

Disclosure: I hold CLIG.

Daily Stock Market Report (Mon 20 Jan 2025) - RCH, SDG, JDG, CAPD, CLIG, VANL

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Graham Neary

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