Small Cap Value Report (1 Jul) - CUP, ODX
Good morning! Cupid (LON:CUP) have announced the results of the independent review of their operating procedures by accountants KPMG. Maybe it will serve its purpose, in bolstering confidence in the company & it's share price? Personally I'm not interested in investing in this space at all, having read about the underhand practices which seem to be prevalent in the online dating world.
The losses on my gold mining shares have sharply reduced this morning, as there was a good rebound in the price of Gold following the close of the UK stock market on Friday. It's bounced from around $1,200 to $1,240 (Edit: corrected now, apologies for earlier typo) , which will have a geared effect on producers, depending on where their cost of production sits. Who knows what will happen next, although it has been pointed out to me that there is an apparently huge short position in Gold, so short covering could fuel a rapid bounce, who knows?
I've had a quick skim through results for the year ended 31 Mar 2013 from Omega Diagnostics (LON:ODX), but they really don't look very good. Turnover rose 1% to £11.3m, but adjusted operating profit fell 22% to £0.78m. Adjusted EPS rose marginally to 1.3p, but was heavily flattered by a large tax credit.
They got a £4m Placing away post year-end, so that will have wiped out year end net debt of £0.7m and given them >£3m net cash. The £18.4m market cap at 16.8p seems to hinge largely on hopes for a better outlook from new tests to be introduced. It doesn't pay a dividend, so it's not really my cup of tea - I suspect this is the type of share that you would only buy if you met management and bought into the story, as the historic numbers don't impress at all.
For anyone who missed my Webinar last week with Ed, focussing on small cap stock picking, the recording is now available on the bottom RHS of this page. It seems to have been well received, so we'll be doing more of these!
There's nothing much else to report today, a very quiet day for news in my niche.
See you from 8 a.m. tomorrow.
Regards, Paul.
(of the companies mentioned today, Paul has no long or short positions)
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5 comments
Can't say I have Truffle. Avoiding all small mienrs these days after minor disasters at the likes of RRR,AGQ and the like. Gold side am only looking at:
Cey,HGM, MML, Polymetal / PolyUS . Each have issues! :)
speaking of goldminers, have you ever looked at kolar gold?
trading at a discount to cash (cash burn remains though albeit on reduced basis now).
damille, the activisit investor who seeks breakups and returns of cash recently showed up on register
Morning PP.
Gold is,as far as I can see, $1240-1241 this morning and not $1400! A small typo on your part I guess. :)
MML was a good entry point for you however, of that I am sure.
Morning Fangorn,
Many thanks for pointing out my typo, I've corrected the article now.
No excuses, that was just sloppiness on my part.
Apologies, Paul.
No need to apologise at all - easy oversight to make. Perhaps wishful thinking :)
Have been shocked at Gold's rapid fall from grace and despite protestations to the contrary don;t believe QE is anywhere near tapering.