Small Cap Value Report (4 Nov) - BES, AGTA, BIOM, GRA

Monday, Nov 04 2013 by

Good morning! It's a very quiet day for results & trading statements today. The Futures are indicating a decently positive market open today, with the FTSE 100 forecast to open up 32 points at 6,754, so that should mean we have a fairly relaxing morning.


As mentioned before, I'm looking below my usual market cap cut-off point of £8-10m at the moment, because we're in a very bullish market for small caps, and there have been some explosive moves upwards in the smallest companies. One example in my long term portfolio is Akers Biosciences Inc (LON:AKR), which I bought at 1.25p a little while ago on some positive-sounding newslow, and have been amazed to see them since rise to 3.9p. It was more luck than judgment really, but it certainly whet my appetite for micro (or nano!) caps. The beauty of that type of move is that you can sell some to get your cost price back, then run the remainder for free, whilst looking around for the next one.





I doubt whether Blavod Wines and Spirits (LON:BES) will deliver much of a share price move, but you never know. This company has been soldiering on for many years, failing to gain much traction for its speciality vodkas. It looks like there might at last be some hope, as they today say that they are on target to achieve breakeven in spring/summer of 2014. Shareholders stumped up another £0.57m in a 1p per share Placing recently (23 Oct 2013).

Their interim results to 30 Sep 2013 look pretty pathetic to me - just £1.3m turnover, and a £229k loss. Why is such a tiny company Listed at all? The Listing costs must be around £75k for this half year, so it would surely make far more sense for them to take the company private? Although on the other hand, announcing a de-Listing is the quickest way to destroy shareholder value, as the share price would instantly halve, so it's a tough call.

In terms of strategy, Blavod has cut its fixed costs considerably, and appointed a third-party distributor, so who knows maybe they can yet turn this into a profitable enterprise? I can't get anywhere near the £3.6m market cap in…

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Distil Plc is a United Kingdom-based holding company. The Company is engaged in marketing and selling of Blavod Black Vodka, Blackwood's Gin and Vodka, Blackwood's Limited Edition Vintage Gin, Diva Vodka, Jago's Vanilla Cream Liqueur and RedLeg Spiced Rum domestically and internationally. The Company markets and sells its brands in various international markets, including the United Kingdom, the United States, Germany, Spain, Australia and Russia. RedLeg is a premium Caribbean rum, infused with spices. Jagos is the vodka-based cream liqueur with a vanilla cream flavor made with whole cream. Blavod is made using grain vodka, triple distilled and double filtered. The Company's subsidiary is Distil Company Limited. more »

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Agriterra Limited is an agriculture company. The Company is engaged in investment in, development of and operation of agricultural and associated civil engineering projects in Africa. The Company's operations are focused on maize and beef in Mozambique. It also has palm oil operations. The Company's segments include Grain and Beef. The Company operates its established maize buying and processing business from its Desenvolvimento E Comercializacao Agricola Limitada (DECA) facility in Chimoio, central Mozambique, which has a 35,000 ton storage capacity, and its 15,000 ton capacity Compagri Limitada (Compagri) facility in Tete, northwest Mozambique. In addition to maize flour, the Grain division produces maize bran as a by-product. In Mozambique, the Company operates its Beef division through Mozbife Limitada (Mozbife). Its subsidiaries include Agriterra (Mozambique) Limited, Agriterra Aviation (Pty) Limited and Agriterra East Africa Limited. more »

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12 Comments on this Article show/hide all

grumpy5 4th Nov '13 1 of 12

no comment on AGTA? I know you hate loss-making cos, but the cash position (rel to mkt cap) and business model are surely of some interest, no?

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Paul Scott 4th Nov '13 2 of 12

In reply to post #78791

Yup I've commented on Agriterra (LON:AGTA). Give me a chance, I can only work through one company at a time!!! ;-)


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CantEatValue 4th Nov '13 3 of 12

"I used to specialise in buying up shares in companies where the cash was actually greater than the market cap"

What prompted you to turn off these 'deep value' shares? If it turns up the odd 30-bagger, surely it worked pretty well!

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Gostevie 4th Nov '13 4 of 12

I have never met the man, but as long-time follower of Middlesex County Cricket Club I have met a few people who have, and I have also read quite a bit about him, and Phil Edmonds sounds like something of an arrogant and opinionated fellow. As good a reason as any to add some Agriterra (LON:AGTA) to my SIPP I suppose, so I have just done so at 2.35p. :-)


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grumpy5 4th Nov '13 5 of 12

Gostevie, "fellow" is probably too kindly a term!

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clissold345 4th Nov '13 6 of 12

Hi Paul, the top graph at the bottom of your Report at present is Media Corporation plc but this must be an error since you havent reported on them today. Regards, Chris.

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maillotàpoisrouges 4th Nov '13 7 of 12

I bought up almost 8% of the company, and then 30-bagged my investment in the next 3 years.

Did you have to release your own RNS statement? ;-)

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nevilleaustin 4th Nov '13 9 of 12

Hi Paul,
As you have bought a few Agriterra this morning you may be interested in meeting them at Pro Active Investors this coming Thursday 7th November at the Mayfair Chesterfield Hotel.
I have noticed that John Rosier has held Agriterra since April, he sounds a little frustrated with the holding, he says that if he ever gets a dog he is going to name it Agriterra!
I look forward to seeing you at the next Mello, 18th Nov which is Karens birthday, should be fun!
All the best,

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bsharman 4th Nov '13 10 of 12

In reply to post #78805

Hey Neville! I may be going as I am a holder of Agriterra...

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nevilleaustin 4th Nov '13 11 of 12

In reply to post #78808

Hi Ben,
I am probably not going to be able to go to make this one. If you do go let me know what you think, email -

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lightningtiger 4th Nov '13 12 of 12

AKR is on my hit list It looks really good to me with L & G + the bank investing in the company in October. My kind of stock. EZJ had to go today replaced with APC. My hit list folios do not want to accept any more hit lists. I think it must be full to capacity. Thanks for the tip Paul.
Cheers from Lightningtiger

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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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