Good morning, it's Paul and Jack here with the final SCVR for this week.

Timing - today's report is now finished.

Agenda -

Paul's section:

Fulham Shore (LON:FUL) - strong trading in first week of re-opening. Upbeat about the future. I like it, but it's looking fully or over-priced.

Photo-me International (LON:PHTM) - a big rise in profit guidance, thanks to a surge in activity in Japan, driven by Govt action. Looks worthy of a closer look, but I still find it impossible to value, due to uncertain long-term outlook for photobooths, and lack of divisional breakdown of other activities.

Audioboom (LON:BOOM) - good revenue growth, but it's only just reached breakeven. >£100m market cap is factoring in a lot more growth. Definitely not my type of investment, but I bounce around ideas as to why it might appeal to speculators in a bull market.

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Jack's section:

Record (LON:REC) - ongoing fee pressure in core Passive Hedging product but growth in (smaller) higher margin products and good inflow momentum from this outsourced currency manager.

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Paul's Section

Fulham Shore (LON:FUL)

16.0p (pre market open) - mkt cap £99m

As with so many shares at the moment, I’m very surprised the valuation of FUL has run so high, before it’s even properly re-opened. Yes, it’s likely that the company and other hospitality companies are on the cusp of a bonanza, as newly freed customers want to enjoy eating & drinking socially again. But does that really justify the price now being c.50% higher than before covid? Maybe people think it does, I’m just asking the question, and can’t see it being reasonable myself.

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I have to laugh, as less than a year ago, I remember quibbling over buying at c.6.5p, thinking it was too expensive! If only I’d had a crystal ball back then.

Re-opening step 2 - for hospitality this meant outside spaces only, happened on 12 April, only 11 days ago. Therefore, FUL giving us an update today, suggests they’ve traded really well - companies are usually eager to get good news out fast, whereas bad news takes longer.

So I’m pretty sure this update is going to be good, without even having read it yet!

Trading Update

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