Small Cap Value Report (10 Dec) - John Lee, SEA, ZYT, SEE, CPR

Tuesday, Dec 10 2013 by

Good morning. I'm writing this first bit early, at 1 a.m., to jot down a few thoughts after this evening's Mello investor evening in Beckenham. It must have been the best attended Mello ever, with about 75 investors descending on Sea Salt restaurant in Beckenham tonight, right by the railway station, just 20 mins from Victoria.

The star of the evening was John Lee, Britain's first ISA millionaire, a veteran investor, and a politician. To my shame, I've not come across him before, but listening to him speak was an absolute treat - literally every well-crafted sentence was a pearl of investing wisdom. When you listen to really successful, experienced value investors, they don't really tell you anything new - instead they charge you up again with common sense, like a flat rechargeable battery is brought back to life from plugging it into the mains.

John kindly signed copies of his new book, "How To Make A Million - Slowly", and I was particularly thrilled to receive a copy where he accidentally mis-spelt "successfull" with two "l"'s, so I quipped that it would be worth far more when I chose to sell it on Ebay due to the error! All in good humour.

We were then treated to a masterclass in value investing from Mr Lee, and to get a flavour for what he talked about, here is a link to a newspaper article.




Next, we had a presentation from an interesting little stock that I hold a few of, called Seaenergy (LON:SEA).

Now I don't want to sound critical, but if I'm honest, the presentation was a bit of a muddle. When introducing a company, an investor presentation needs to have a logical flow. It should go something like this;

  1. This is who we are - name, ticker, share price, no. shares in issue, market cap, key management.
  2. This is what we do - in really simple terms that everyone can understand.
  3. The investment case - explain the valuation & performance.
  4. The future - tell us why we should get excited about future growth.


Also, in a large room, with a lot of background noise from kitchen equipment, staff who need to prepare our food & drink, etc, you need to take control, and speak up & project your voice to the…

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Zytronic plc is involved in developing and manufacturing of touch sensor products. The Company is also engaged in the development and manufacture of customized optical filters. Its geographical segments include Americas (excluding USA), USA, EMEA (excluding UK and Hungary), Hungary, UK, APAC (excluding South Korea) and South Korea. Its products incorporate an embedded array of metallic micro-sensing electrodes. Its technologies include projected capacitive technology (PCT) and multi-touch mutual projected capacitive technology (MPCT). PCT touch sensors can be constructed from one, two or three layers of laminated, toughened glass. Its sensing products offer touchscreen solution for applications, such as leisure, digital signage, retail, surfaces, banking and industrial applications. Its touch sensors are used in video jukeboxes and slot machines. The PCT touch sensors are used in a range of workplace applications, from medical diagnostic equipment to oil field machinery controls. more »

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Seeing Machines Limited is engaged in developing, selling and licensing products, services and technology to detect and manage driver fatigue and distraction, including continued market development to secure sustainable channels to market for the product. The Company's segments include automotive, off-road, fleet, aviation, scientific advance and other. The Company is also engaged in developing driver-monitoring technology to incorporate into passenger cars; entering commercial agreements with partners for the development, manufacturing and sale of products into target markets, and research and development of the Company's processing technologies to support the development and refinement of the Company's products. It also offers driver monitoring system (DMS) technology. more »

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

23 Comments on this Article show/hide all

danielbird193 10th Dec '13 1 of 23

Not too critical at all. I'm in my 20s, and the further I get in my career the more I have come to see that presentation and public speaking skills are just as crucial to professional success as any technical knowledge.

I used to think it was a matter of 'style over substance', but have now come to realise that if you can't stand up in front of a room and present your ideas clearly and concisely, you can never hope to inspire confidence in others or lead a successful team. All the leaders I look up to have the knack of good public speaking. It's a skill that can only be learnt by practice though, so all respect to management to getting out there and giving it a go.

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SingSing 10th Dec '13 2 of 23

Sounds like a great evening.

I have watched John Lee on youtube, and was impressed by him, and his approach - significant shareholding held by owners (thus interests are aligned), hold long term, value focused, and the investor's best friend - patience. Some of his holdings pay him dividends which are over 100% of his initial investment...

On a separate note, for what it's worth - CRE looks very good value.
interesting article (although from beginning of year - but story's gotten better) quoting Alex Wright, who has proven to be quite shrewd - and he's a fan.

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garbetklb 10th Dec '13 3 of 23

Hi Paul
I'd be v interested in your thoughts about Zytronic - results today looked pretty good to me as the poor 1st year appears to have given away to a much better 2nd half. And reasonable confidence for the future.
The only bit I don't understand is the one off impairment of royalties
But the market doesn't like it - 10% down.
Thanks in advance

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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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