Small Cap Value Report (Fri 31 August 2018) - RTN, WTB, FFI, ESG, Wonga/HAT

Re Restaurant (LON:RTN) - this is a profound and quality statement

'To be honest, I've mentally written off this entire sector. That could be a mistake but I just can't visualise restaurants (or pubs) as quality compounding businesses over time.

I could only see that happening if their brand names were so compelling to customers that competition somehow became less intense. For as long as they are competing on price against anyone with a little bit of capital, a work ethic, and an idea, I don't want to participate.'

Thanks Graham for your excellent articles. Enjoy the break.

I think Whitbread (LON:WTB) should have stuck by Costa. Perhaps spun it off and retained a majority ownership. Coffee is a hot area at the moment and the Costa brand has a lot of international growth left in it so provided they don’t mess it up I think Coke have the better of this deal.
I usually agree with Elliott and have done well following them into investments but this time I think short termism has won out.

More positively I’m intrigued by the Strix (LON:KETL) move into the coffee market and I’ve bought an initial stake there.

Sorry to be niggly - the Costa price was £3.9 billion, not £3.9 million.

Re Whitbread (LON:WTB) - Hi Graham, I'd like to add my name to the already long list of those who have really apprecitated all your work over the past weeks.

One little typo though - I think that's 3.9 billion not million. If not then I'm going to start a whipround amongst your fellow readers to raise the cash - I'm sure we can get enough interest to raise the offer to £4 million.

@graham-neary before your hols correct the typo on the Costa sale - that would be £3.9bn not million... that would have been a bargain

reminiscent of Dr Evil

Thanks for the high quality analysis during the summer Graham.

As for Costa, well with Coca Cola behind them, I can only see fairly aggressive global expansion for the Costa brand now.

In reply to post #395159

Lol! Thanks for that. G

In reply to post #395149

No, it's good to be niggly - it's the only way I can correct errors and typos. Thanks! G

Thanks Graham for all your insight over the summer. Much appreciated

Have a nice holiday,Graham !

Thanks for the great coverage over the summer Graham, you've done a sterling job. This is always a first port of call for stock ideas to research further. Your and Paul's analysis help me quickly identify what might be worth my time to look into and what to barge pole.

You deserve a fabulous holiday. I hope that you come back refreshed and ready to share more of your wisdom with us.

I can't reply individually but I greatly appreciate all the kind wishes - thank you all so much! It means a lot to me. Graham

Thanks for your time Graham

I know it’s getting repetitive but it shows how appreciated your daily updates are Graham. It’s been a Herculean effort. Thanks. My reaction to the Costa news was similar to yours. otoh their Premier Inn chain is very successful and trip advisor and other reviews are excellent. AND the chain comes top in “Which” surveys, beating far more expensive chains too. Now they can focus on European and possibly other foreign expansion, and if their standards there can be as good as here, Premier could go from strength to strength.

In reply to post #395094

Most gold miners are down at the moment. The fall may just be down to sentiment on the sector.

In reply to post #395094

Also many other miners are down, such as Central Asia Metals (LON:CAML) -37%, Ferrexpo (LON:FXPO) -50%, Griffin Mining (LON:GFM) -35%, Pan African Resources (LON:PAF) -53%.

Great final report until you return fresh and enthusiastic after your so well earned break.
I do like the dry wit - “It’s amazing how unlucky fresh IPO’s turn out to be”. I avoid fresh IPO’s on principal:
* the sellers know so much more about the company than the buyers
* as you say, recent history has been littered with optimistic IPO’s followed by profits warnings
And thank you for founding CAMRE (the campaign for Real Earnings). An RNS that highlights adjusted earnings, EBITDA, “adjusted EBITDA”, etc. Is a big red flag unless a prominent and clear reconciliation to real earnings is also given.
Lots of good wishes to you for your well earned break and looking forward to your return when rested.

A belated thanks to Graham for his Sterling work in Sharing his views/analysis with us all - He may already be relaxing, beer in hand, and turning lobster-red as I type !
Also, a pre-re-launch welcome back to Paul :o)

In addition to the above, I'd like to share a trick I've just found on Stockopedia - Many (all?) of you may already be aware of this. I've been DYOR on a few shares, and was searching the SCVR archives for any Paul/Graham analysis.

If a share has changed name/ticker, it's still searchable - as per this example.
Searching the SCVR for Yolo Leisure and Technology (LON:YOLO) gives this report :
https://www.stockopedia.com/content/small-cap-value-report-6-may-2014-pps-mtc-pen-blnx-ppr-83162/

Yolo Leisure and Technology (LON:YOLO) were called Pentagon Protection (the PPR from that link).

BLNX are also in that particular report, and a search for their new name RhythmOne (LON:RTHM) brings up that report too.

Not rocket-science, but a clever little Stockopedia extra :o)

btw. The report above is from 2014, and I'm amazed that Paul hasn't aged AT ALL in the past 4 years, when comparing his pictures ! lol

Wot no Monday placeholder? :-(