Small Cap Report (5 Apr) - GDP, SRT, IGP, PLA

Friday, Apr 05 2013 by

Pre 8 a.m. comments

Good morning! Looks like it's either a very quiet day for announcements, or investegate is broken again!?

I have a small long position in Goldplat (LON:GDP), unusual for me as it's both overseas and in the resources sector (both of which are usually things I avoid), but rules are made to be broken. It makes steady profits from recycling/recovery of Gold from equipment used in Gold extraction. There's an unusual announcement this morning concerning the acquisition of a 10% stake in the company by Fidelity, which explains the unusually large reported trades that I noticed recently.

The stake was sold by Artemis, who retain 10.4%, and interestingly (and unusually) have entered into a voluntary 12-month lock-in with their remaining shares. That's quite an innovative solution in preventing the market worrying about how they might dispose of their remaining shares, and means they won't be dribbled out into the market piecemeal thus depressing the share price. By stating that, and signing a 12 month lock-in, Artemis are helping to prevent an overhang occurring. I like the creative thinking there, although one hopes it's not an April Fool, give the date of the lock in agreement?!

Goldplat have also slipped in a brief statement at the end of this announcement, saying;


Russell Lamming, CEO, stated: "The Company is delighted to welcome Fidelity to its shareholder register.  Fidelity's notable investment in the Company endorses the Board's belief that Goldplat offers shareholders significant upside potential through its robust cashflow generation and ability to self-fund the sustainable growth of gold recovery operations in Africa while rewarding shareholders with progressive dividend and share buy-back policies."



Again, a bit of an unusual way of doing things, but there we go.

The shares certainly seem good value, with net cash, a decent dividend yield, and one of the lowest PERs I've seen in a while from a company with net cash.

Check out the valuation section of the StockReport (on the left).

















Software Radio Technology (LON:SRT) has issued a trading update which says…

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Goldplat plc is engaged in the production of gold and other precious metals, by processing by-products of the mining industry, as well as mining itself. Its segments include Recovery operations, which includes the recovery of precious metals from metallurgical challenging materials and the processing of ore, sourced from other mining operations; Mining and exploration, which includes assets held for commercial exploitation of precious metals and exploration assets held where the commercial viability of the ore resource has not yet been evaluated or is in the process of evaluation, and Administration, which includes activities conducted by holding companies in relation to the Company and its subsidiaries. Its portfolio of assets consists of gold recovery operations in South Africa and Ghana, a gold mine in Kenya and exploration projects in Ghana and Burkina Faso. Its projects include Kilimapesa gold mining project, the Nyieme gold mining project and the Anumso gold mining project. more »

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SRT Marine Systems plc, formerly Software Radio Technology plc, is engaged in the marine technology business. The Company's principal activity includes development and supply of automatic identification system (AIS)-based maritime domain awareness technologies, and derivative product and system solutions for use in a range of maritime applications from safety and security to fishery management and environment protection. AIS is a mesh network radio communications system technology specifically designed for the marine domain, and it uses a combination of global positioning system (GPS) and high frequency radio to enable real time, simultaneous data communication between multiple, independent entities providing information, such as identity, GPS position, speed and other customized data. It offers a range of AIS products and maritime domain monitoring system solutions, which also fuse other maritime sensor technologies, such as radar, closed-circuit television and communications. more »

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Intercede Group plc is a United Kingdom-based software and service company. The Company is engaged in developing and supplying of identity and credential management software. The Company provides MyID software, which is an identity and credential management system that enables organizations to create and assign trusted digital identities to employees, citizens and machines. Its MyID software protects the networks, facilities and intellectual property of governments, agencies and other enterprise customers. In addition, it provides MyTAM, which is a cloud-based service that provides Android application developers and service providers to deploy trusted applications to the trusted execution environment (TEE) on mobile devices. It offers its solutions to various sectors, including aerospace and defense, finance and telecommunications; governments and federal agencies, and mobile developers. The Company operates in the United States and the United Kingdom. more »

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  Is LON:GDP fundamentally strong or weak? Find out More »

4 Comments on this Article show/hide all

Beginner 6th Apr '13 1 of 4

Hi Paul
I noticed on your blog that KBC Advanced Technologies (LON:KBC) has moved from being a larger holding to a smaller one. Does this mean you have sold off some stock here? I am interested as I have a few KBC Advanced Technologies (LON:KBC) myself.
Thanks in advance.

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Paul Scott 6th Apr '13 2 of 4

In reply to post #72271

Haha, well spotted! Indeed, I started to get nervous about the big fall in the FTSE yesterday, and so decided to cut back on a few positions so that I'm not so highly geared. Something had to go, and of my larger positions, KBC was the one I felt least positive about. I might buy them back again next week, as I have a conversation with a Director scheduled for Tuesday. Kestrel have been buying heavily, and the price has struggled to stay flat, so it concerns me that when Kestrel stop buying, then they might fall in the short term? Hence I wanted to lighten up on them so that a (say) 10-20% drop in the short term (which is possible) would not cause me any significant pain.

Also there was quite a bearish tone on the advfn bulletin board from some previously bullish people, whose concerns about the tax charge I listened to & absorbed, after initially brushing off those concerns. Sometimes things gestate in your mind & you just think, hmmm maybe I should lighten that position a bit.


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Beginner 6th Apr '13 3 of 4

Thanks P. I am really rather impressed by your thoughtfulness and alertness. I suppose those are really key attributes in this game. Thanks again.

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qvg 8th Apr '13 4 of 4

Hi Paul
GDP. Although the sale of a large stake and lock in is reported as being by Artemis, I think it is actually shares held by the previous CEO, a Cypriot called Dimitri.

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About Paul Scott

Paul Scott

I trained as an accountant with a Top 5 firm, but that was so boring that I spent too much time in the 1990s being a disco bunny, and busting moves on the dancefloor, and chilling out with mates back at either my house or theirs, and having a lot of fun!Then spent 8 years as FD for a ladieswear retail chain called "Pilot", leaving on great terms in 2002 - having been a key player in growing the business 10 fold. If the truth be told, I partied pretty hard at the weekends too, so bank reconciliations on Monday mornings were more luck than judgement!! But they were always correct.I got bored with that and decided to become a professional small caps investor in 2002. I made millions, but got too cocky, and lost the lot in 2008, due to excessive gearing. A miserable, wilderness period occurred from 2008-2012.Since then, the sun has begun to shine again! I am now utterly briliant again, and immerse myself in small caps, and am a walking encyclopedia on the subject. I love writing a daily report for on most weekday mornings, constantly researching daily results & trading updates for small caps. Cheese! more »


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