Good morning, Paul & Jack here with the last report for this week, and we'll record another podcast this afternoon too, to summarise the week's main small cap events. Hopefully with better sound quality - I've bought a new mic. Today's report is now finished.
Podcast - we've just recorded it - quicker, and with better audio quality. Should be up on Spotify in a couple of hours. Just search for Small Cap Value Report.
Agenda -
Paul's Section:
Dx (group) (LON:DX.) - shares are still suspended. Now the auditors have resigned, before signing off the accounts. We're only given DX's summary of the auditors resignation letter, not the actual text of it. Coming on the back of 2 NEDs recently resigning, this is looking grim for management. The underlying issue is some kind of disciplinary investigation. I think the auditor resignation, which makes clear that management have not been truthful, means it's overdue for a change of top management.
Virgin Wines Uk (LON:VINO) - a fairly mild profit warning from yesterday, which has clobbered the share price by about 25%. As we suspected might happen, growth from the pandemic is now proving difficult to beat, with revenue growth turning negative in Q2 (Oct-Dec 2021). VINO looks an OK company, nothing special though. Just one of several wine delivery/subscription companies.
Explanatory notes -
A quick reminder that we don’t recommend any stocks. We aim to review trading updates & results of the day and offer our opinions on them as possible candidates for further research if they interest you. Our opinions will sometimes turn out to be right, and sometimes wrong, because it's anybody's guess what direction market sentiment will take & nobody can predict the future with certainty. We are analysing the company fundamentals, not trying to predict market sentiment.
We stick to companies that have issued news on the day, with market caps up to about £700m. We avoid the smallest, and most speculative companies, and also avoid a few specialist sectors (e.g. natural resources, pharma/biotech).
A key assumption is that readers DYOR (do your own research), and make your own investment decisions. Reader comments are welcomed - please be civil, rational, and include the company name/ticker, otherwise people won't necessarily know what company you are referring to.
