Pre 8 a.m comments

I thought we'd have a Quindell-free day today. I've made my views clear on that one, and the market will decide what happens next.

It looks like a fairly quiet day so far for small cap news. Incidentally, I've booked in a conference call with the CEO & FD of Zytronic (LON:ZYT) next Tuesday, so will report back here with my findings. They are releasing their interim results, and should give more detail about the outlook, following their profits warning late last week. ZYT shares turned at around 150p yesterday, and recovered somewhat to 170p by the close.

I saw the price turning when the Offer was 153p, and the Bid crept up to 152p. That's nearly always a sign that the price has bottomed - i.e. when the offer price stops falling, but the bid begins rising until the spread has almost disappeared. You then usually have about 30 seconds (maximum) to execute a buy order, before the offer price starts moving up. Then when people see both bid and offer moving up, they pile in, and the price can move up a fair bit in a short space of time. If you're not quick enough, then you've missed it.

I'm a bit surprised that the market took it up to a PER of 20 times revised 8.5p EPS broker consensus for this year, so the price is already factoring in a significant rebound in earnings next year. I'm not prepared to pay 170p or more, so for the time being I've missed it. Plenty of other pebbles on the beach, so there we go.

 

Mobile Streams (LON:MOS) has issued an interesting-sounding trading update. Their sales seem to have risen considerably, with Q3 revenues of £14.5m compared with £5m in the prior year period. They say that gross profit is ahead of expectations, but net profit is not mentioned. Although they do say that they "expect a strong end to the currrent financial year ending June 30th 2013".

Might be worth a look, although the shares have already gone up a lot, and they state that most of their net cash is held in Argentina, which could be a problem as I think they imposed capital controls? I don't know anything about this company, so don't have a…

Unlock the rest of this article with a 14 day trial

or Unlock with your email

Already have an account?
Login here