Good morning! It's Paul here.

Graham usually does these reports on Fridays, but there are a few things I want to comment on too, so it's 2 reports today. Graham's report is taking shape here.

Please note that I had a late surge yesterday evening, and wrote 4 more sections in yesterday's report, which is here. (covering: Audioboom, Carrs, Mothercare, and Judges Capital)


QUIZ

This is a Glasgow-headquartered fashion retail business - physical stores, and online. It's in the process of floating on AIM, at a £200m market cap. Being my specialist sector, I was keen to meet management. I attended a group meeting earlier this month, and reported on my (mostly positive) thoughts here.

After much pondering, I decided to apply for the Quiz IPO, through my broker. Most placings are only available to investors who are classified as professional investors by their broker, or who meet suitability rules. It seems ridiculous that there are restrictions on who can buy new issues. Yet anyone can buy any share in the aftermarket, without any restrictions applying. Seems daft to me.

Anyway, the good news is that I think this is likely to be a successful new listing. The reason is that the allocations fell within the goldilocks zone - so there was enough excess demand for the new shares to make it a success, but not so much excess demand that allocations were derisory. Mind you, people tend to over-apply for the good placings, expecting to be scaled back.

There is an RNS here giving schedule 1 information. I see that the great & the good of institutional small cap investors are on board - e.g. Hargreave Hale 6.5%, BlackRock 5.0%, and Slater Investments at 3.1%.

The shares start trading on 28 Jul 2017. My hunch is that they're likely to go to a premium, but time will tell.




IQE (LON: IQE)

(in which I hold a long position)

There was a remarkable move up yesterday, on strong trading news, which I reported on here. For anyone (like me) who doesn't really understand what the company does, there is an outstanding video here from PI World, by IQE's CFO, at Mello Beckenham, in Jan 2016.

I think this presentation is an wonderful example of how to explain complicated technical…

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