Small Cap Value Report (13 Apr 2015) - GTC, TCM, SYM, UNG, SSTY

Monday, Apr 13 2015 by
22

Good morning! I'm starting to worry a bit about the outcome of the General Election, so have opened up a short position in the FTSE 100. Yes, I know that most of the FTSE 100 earnings are now overseas, so it's not a very good proxy for UK earnings, but the election outcome is more about sentiment than earnings. People are (rightly) starting to worry about a weak Labour Govt being propped up (i.e. held to ransom) in coalition with the Scottish Nats.

Casting my mind back to the 2010 election, I recall that the big worry then was the risk of a run on the pound, and Gilts. Here we are, with the National Debt far higher, and nobody seems to be worrying any more. There again, economic recovery seems fairly well established now, when it wasn't in 2010.

I won't be adjusting any of my long positions, as it's too expensive with small caps, to trade in & out, due to the wide bid/offer spreads. So having a short on the FTSE 100 will help me sleep at night, and will provide a cash buffer if the market as a whole does go into panic mode. After all, you need cash to be able to buy at the bottom.

I wonder if other people might now be reluctant to open any new positions until the General Election uncertainty has passed? It could throw up some interesting buying opportunities, if good companies drift down in price due to a buyers' strike.

Laura Ashley Holdings (LON:ALY) issued their results mid-afternoon on Friday last week, which was a bit of a nuisance, so I had to do a write-up on them here. Also I slotted in another interesting company, OMG (LON:OMG) - I hold long positions in both, as is always disclosed within each section of each report - and I think both look excellent companies, so if you haven't seen that report then the link is here.


Getech (LON:GTC)

Share price: 60p (up 12.5% today)
No. shares: 30.3m
Market Cap: £18.2m

Contract win - this is an interesting one. The company says it has won a contract with a national oil company, but on closer inspection it sounds as if they have actually made it onto a preferred supplier…

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As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested. ?>


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Getech Group Plc is a United Kingdom-based company, which provides geological services, reports and data to the petroleum and mining industries to assist in their exploration activities. The Company's segments include Multiclient products and services, Consultancy projects and All other segments. Its Multiclient products and services segment includes Globe, which is its live Geographic Information Systems (GIS) Earth platform; Gravity and magnetics, which offers global databases; Multiclient regional reports, which include reports on various exploration areas, and Multi-Satellite Altimeter Gravity Programme, which is a three-year study covering gravity data for the continental margins of the world. Its Consultancy projects include Consultancy and licensing rounds, under which the Company provides technical support and advice to the Mozambique government, and GIS software and services, under which, the Company, through Exprodat Consulting Limited, offers Exploration Analyst Online. more »

LSE Price
27.5p
Change
-1.8%
Mkt Cap (£m)
10.5
P/E (fwd)
13.7
Yield (fwd)
n/a

Telit Communications PLC (Telit) is a United Kingdom-based enabler of machine-to-machine (M2M) communications providing cellular, short range and positioning modules via its brand Telit Wireless Solutions. The Company develops and markets cellular, global navigation satellite system (GNSS), short-to-long range wireless modules plus mobile connectivity services and application enablement platform to onboard edge devices to the Internet of Things (IoT). The Company is organized into three geographical segments: EMEA, APAC and Americas. Through its business unit m2mAIR, Telit provides platform as a service (PaaS), including M2M managed and value added services, application enablement and connectivity, including mobile network side and cloud backend services. Its modules are integrated in a range of applications, including asset tracking, remote industrial monitoring, automated utility meter reading, insurance telematics, consumer electronics and mobile health devices. more »

LSE Price
156p
Change
0.4%
Mkt Cap (£m)
204.6
P/E (fwd)
29.9
Yield (fwd)
n/a

Symphony Environmental Technologies plc is engaged in controlled-life plastic and sells both pro-degradant additives and finished plastic products. The Company's business activities include development and supply of environmental plastic products to a global market, and the development of waste to value projects. It also supplies other flexible polythene and related products. It operates through three segments: Plastics Sales, Plastics R&D and Recycling Technologies. The Plastics Sales segment generates and maintains revenues relating to plastic additives, masterbatches and finished products. The Plastics R&D segment includes all new product development and research expenditure. The Recycling Technologies segment includes all activities involved in the development of tire and rubber recycling systems. Its technologies include d2w, an oxo-biodegradable (controlled-life) plastic technology; d2p, a protective plastic technology, and d2t, an anti-counterfeiting performance technology. more »

LSE Price
12.25p
Change
2.1%
Mkt Cap (£m)
18.5
P/E (fwd)
26.6
Yield (fwd)
n/a



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


42 Comments on this Article show/hide all

sirsege 14th Apr '15 23 of 42

Ram & Cig, Thanks for your feedback. Experience with some Chinese stocks are quite scary.

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Fangorn 14th Apr '15 24 of 42
6

PP.

I think a Labour coalition is all but guaranteed - With those awful sweaties getting a disproportionate say over how England is run - personally I was all for them going Independent as it'd end any chance of this very outcome.

Given the financial mess Labour left this country in in 2010 (a mess LibCon have added to the tune tune of £700bn to National debt - what austerity?) its very surprising that they STILL garner 34% of the poll vote. Absolutely sholing indictment of the pig ignorance of a significant slice of the country's population.

This country cannot afford anothe Labour government so soon. But how we get out of this financial mess (National debt continuing to rise) with Debt Service interest costs c £50 billion per year, at such low rates beggars belied. What we dont need is more borrow and spend.

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janebolacha 14th Apr '15 25 of 42
12

In reply to post #96576

May I ask that we keep politics off this site, please, however strongly some may feel about the upcoming UK general election. There are loads of other sites more suitable for that purpose.

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Beginner 14th Apr '15 26 of 42
2

In reply to post #96582

Agreed. Well said Jane. No politics unless relevant please.

Is anyone else trying to keep some cash back for potential heightened uncertainty closer to the election?

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Fangorn 14th Apr '15 27 of 42

Given that the first paragrapgh was veryr much "Politics" inclined

Good morning! I'm starting to worry a bit about the outcome of the General Election, so have opened up a short position in the FTSE 100. Yes, I know that most of the FTSE 100 earnings are now overseas, so it's not a very good proxy for UK earnings, but the election outcome is more about sentiment than earnings. People are (rightly) starting to worry about a weak Labour Govt being propped up (i.e. held to ransom) in coalition with the Scottish Nats.

And was started by the landlord to boot, i felt my response, to him, were perfectly aceptable.

"No politics unless relevant please."

And you then immediately follow with

"Is anyone else trying to keep some cash back for potential heightened uncertainty closer to the election?"

Which surely MEANS talk about ELECTION result, ergo politics, is indeed VERT RELEVANT to your decision making investment side?

Hypocrisy?

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Beginner 14th Apr '15 28 of 42
9

In reply to post #96591

Politics ARE relevant.

Referring to a people as 'sweaties' and our fellow citizens as displaying 'pig ignorance', probably not.

I used to keep pigs, by the way. They are exceptionally smart creatures. (But the bravest are the ducks, despite the fact they have no real means of defence at all!)

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Fangorn 14th Apr '15 This post is under review
11

In reply to post #96594

Given that nearly 50% of that country's population dont want to be "our fellow citizens", and the fact that it will be THIS segment that will be dictating the terms of any Labour coalition government, thereby garnering them with far more power than their actual vote justifies are you happy with that? Scots have gone down in my estimation - wont buy Scottish produce anymore as they're in the same category as Argentina for their blatant anti Englishness.

Perhaps "bloody ungrateful Sweaties" migth be more appropriate. :)

Viz pig ignorant labour voters.Are you really disputing that the majority of the electorate,(of the 34-36% that are planning on voting Labour) that have probably always voted Labour regardles are not pig ignorant when you see what 13 years of Labour in power did for this country.The scale of the mess they left was clearly irreparable, one the LibCon coalition has merely added to - austerity, what austerity? National Debt has been increasing £100bn per year for ecvery year of this parliament more or less.

Do you honestly trust that shower that is Milliband, Balls, Cooper and that slippery Chuka?

Re Ducks - agree.Prefer Geese myself as a duck isnt a deterrent whatsoever.


p.s I feel for the poor soul that is so thin skinned that they have claimed my prior message was "abusive". Hilarious,

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janebolacha 14th Apr '15 30 of 42
8

In reply to post #96627

Please, take this elsewhere!

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Fangorn 14th Apr '15 31 of 42
10

In reply to post #96630

I am as entitled as you to respond to a comment aimed at myself...especially as the impact of this election will be quite severe.

If you dont like it, tough.

Stop messaging me direct.

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janebolacha 14th Apr '15 32 of 42
2

I haven't messaged you direct.
What on earth are you on about?

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Fangorn 14th Apr '15 33 of 42

"I haven't messaged you direct.What on earth are you on about?"

So how come I didnt receive this message in my email inbox then, but I did your last two?

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janebolacha 14th Apr '15 34 of 42

I clicked on your name to see who you were, in order to try to understand why you were posting these comments. Maybe that's the wrong way to do it, I don't know, but I never sent you any messages.

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PhilH 14th Apr '15 35 of 42
2

You got a message from stockopedia saying someone had replied to your post. On the last occasion Jane just added to the thread rather than replying to your comments.

Professional Services: Sunflower Counselling
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janebolacha 14th Apr '15 36 of 42
3

In reply to post #96642

Anyway, I'm not interested in having any discussion on an investments site with someone so abusive of others whose political views differ from theirs.
Enjoy!

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Fangorn 14th Apr '15 37 of 42
5

"I clicked on your name to see who you were, in order to try to understand why you were posting these comments. Maybe that's the wrong way to do it, I don't know, but I never sent you any messages."

No biggie. I did wonder why they were coming to my inbox.

Election is only 23 days or so away. And a Labour/SNP is the likely outcome, which will be a disaster this country cant afford. Not sure why you'd need to read my profile though to understand why I have the opinion i do. The empty treasury in 2010 and there's no money left was,I thought, evidence enough! :)


@PhilH,
Cheers. Tend to just comment and submit rather than using reply button myself.

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Fangorn 14th Apr '15 38 of 42
7

In reply to post #96651

" I'm not interested in having any discussion on an investments site with someone so abusive of others whose political views differ from theirs."

Huh who was abusive?

I merely said Sweaties which is no worse than you telling me TWICE to take my opinion elsewhere because you clearly disagreed with it  - who put you in charge to censor what is, or what is not, commented on.

Not Scottish are you?

And anyone voting Labour after the financial mess they left this country in is pig ignorant.
There is no other reason for someone voting for a party that effectively holed this country below the waterline - as indeed do nearly all Labour governments. Time and again the Tories have been called in to clear up the mess - this time they were unsuccesful - ie it was that bad.

I'm not a Conservative voter either before you accuse me of partisanship - just a realist.


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Edward Croft 14th Apr '15 39 of 42
15

In reply to post #96657

Fangorn. I'm proudly born & bred in Scotland - born in Ninewells Hospital, Dundee, went to school in Brechin and then in Dunbar and still visit my siblings in Edinburgh and Glasgow annually.

I love Scotland and Scottish people, I'm not that sweaty and I'd have voted no if I'd been given a vote. I certainly wouldn't vote SNP, but democracy is democracy.

Please can we zip the anti-Scot rhetoric and crass generalisations as it's not helpful and off-topic.

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Fangorn 14th Apr '15 40 of 42

"I love Scotland and Scottish people,"

As indeed did I, until this rather distasteful last couple of years. It's certainly done English/Scottish relations plenty of harm and I see such deteriorating further.

" I certainly wouldn't vote SNP, but democracy is democracy."

Not sure how you think it's democratic, or fair, that a party with such a small share of the national vote is going to be wielding so much power come May election - a country of only 5.29m dont forget, waging the tail of a country of 55million.

Personally Scotland's secession from the UK is preferable to a coalition of Labour/SNP imo, and I'm sure I'm not in a minority when it comes to that from an Englishman's POV.

"Please can we zip the anti-Scot rhetoric and crass generalisations as it's not helpful and off-topic."

Fine.

We'll let events play out....

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peterg 14th Apr '15 41 of 42
1
Not sure how you think it's democratic, or fair, that a party with such a small share of the national vote is going to be wielding so much power come May election - a country of only 5.29m dont forget, waging the tail of a country of 55million.


They may have a bit of influence, but that's just how our democracy works. The Lib Dems were in the same position in the last parliament. Whatever happens they'll still be a small party, and will be easily outvoted on issues where the other parties agree - such as most likely on a Trident replacement.If it's not the outcome you want you should probably be up in Scotland campaigning for the Labour party to reduce any SNP influenceafter the election :-)

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Fangorn 14th Apr '15 42 of 42

"If it's not the outcome you want you should probably be up in Scotland campaigning for the Labour party to reduce any SNP influenceafter the election :-)"

Prefer Scotland leaving the UK thanks. So I'll be campaigning for anotehr referndum as soon as possible so this farce can be put to rest.

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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 Stockopedia.com on most weekday mornings, constantly researching daily results & trading updates for small caps. Cheese! more »

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