Good morning, it's Paul & Jack here with the SCVR for Friday.

Agenda -

Paul's Section:

Electra Private Equity (LON:ELTA) (I hold) - update on valuation. Recently demerged Hostmore (LON:MORE) looks excellent value to me at 118p. Price dislocation in the first few days of the demerger could be providing a buying opportunity?

Smiths News (LON:SNWS) (I hold) - additional comments on the FY 08/2021 results, which Jack covered yesterday. This looks a strikingly cheap value share, with big dividend income in the pipeline, now that historic issues have been largely resolved.

Purplebricks (LON:PURP) - profit warning from yesterday. I'm tempted to buy back in, but am worried about potential legal case, and cash burn. New strategy doesn't seem to be working.

Gattaca (LON:GATC) - in line results for FY 7/2021 were published yesterday. Recent share price sell-off looks to have brought it down from an inflated valuation, to something much more reasonable. I would consider a purchase at 177p.

Jack's Section:

Nichols (LON:NICL) - owner of Vimto, with some attractive quality metrics. The company has been in business for over a century and it remains financially healthy, so a potential buy and hold candidate. Today it announces an 'ahead of expectations' update and the shares have derated recently, so it's a better time to look now than it has been at other times in the past.

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…

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