Here we go again, Monday morning! Not much in the way of results within my remit, but will glance at a couple.
Simigon (LON:SIM) is not something I've looked at before. They are a £7m mkt cap (at 15p/share) Israeli company, which makes flight simulators for civilian and air forces. Their trading statement this morning looks strong, and most of the mkt cap seems to be supported by net cash (NB their accounts are in US dollars though). Personally I don't invest in overseas companies on the AIM market any more, as it seems to me the motivation to List your shares in one of the world's least regulated small cap markets abroad is likely to be questionable in some cases.
Also I have bad memories of losing a hefty wad on an Israeli company called Vigilant Technologies, where I held about 3% of the company, but when things went wrong it proved impossible to speak to anyone in Israeli. All of a sudden calls & messages were ignored, and everybody simultaneously lost the ability to speak English. Whereas had they been in the UK, I could have got in the car and paid them a visit.
Tomorrow should be an interesting day. Interim results are due from Vianet (LON:VNET), one of my largest holdings, and the joint largest position in the model portfolio of my SmallCapValue website. They issued an in line trading statement on 30 Oct, with lots of positive-sounding details (such as previously loss-making subsidiaries moving to breakeven or profit).
Vianet is a classic low PER, high divi yield value situation, but with good growth prospects thrown in for free as well, hence why I am so keen on it. The company has disappointed before, so perhaps that explains the low rating for the moment. There is also a persistent seller in the market, feeding stock out at the end of the day to balance up the market makers. Still, that gives me the opportunity to load up with cheap shares, so it's an opportunity rather than a problem. Hopefully.
May Gurney Integrated Services (LON:MAYG) is also reporting tomorrow, another low PER,…
About the Author
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 Stockopedia.com on most weekday mornings, constantly researching daily results & trading updates for small caps. Cheese! more »
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