Good morning! It's a fairly quiet morning for small cap news, which is handy as I'm off for an investor lunch later this morning. Also, don't forget that it's the quarterly "Mello Central" event tomorrow, Weds 5 Mar kindly hosted as usual by FinnCap in New Broad Street, London. The evening of four company presentations starts at 5pm, and booking details can be found here. I understand that it is almost fully booked.

 

 

 

Ideagen (LON:IDEA)

I last looked at this small software company in mid Jan 2014, on publication of its interim results, and concluded that whilst it looks a good company, making progress, the shares looked expensive at 30.6p.

The share price is now slightly higher at 32p, valuing the company at around £40m.

This morning the company has issued a trading update. It has a 30 Apr 2014 year end, so this covers most of the financial year. Various contract details are given, but the conclusion sounds positive, saying;

 

The Company therefore continues to trade in line with market expectations and looks forward to providing a further update in May following the end of the current financial period.

 

So given that the share price is already quite lofty, this is not likely to do much other than reassure holders.

 

As you can see from the Stockopedia growth & value graphics on the right, Ideagen shares look fully priced on a forward earnings basis, with a forecast PER of 16.5, and a poor dividend yield of only 0.5%. To my mind the only reason to buy this stock is if you think it will materially out-perform these forecasts in future.

Bear in mind that the company has grown through acquisitions, so one would need to take that into account when valuing it.

The Balance Sheet is strong here.

 

 

 

 

 

Hydro International (LON:HYD)

Shares in this waste water specialist have probably been rising due to the flooding, in anticipation of improved business. There's not much sign of that in today's final results for calendar 2013.

Reading my notes from 3 Sep 2013, when I reported…

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