Good morning from Paul & Graham!

Weekend podcast - the latest edition, I recorded on Saturday. You can add this to your podcast platform, by putting in the URL. A listener suggested this, and it works on Google Podcasts, and should on others. This one was a bit too long, rather rambling, apologies, I'll try to stick to 30 mins total in future. If you're short of time, then skip the first 18.25 minutes, to get into the individual companies part.


Paul's Section:

Seraphine (LON:BUMP) (I hold) - another profit warning, this is the 4th since it listed a year ago! However, I think the disappointments are already in the price, with it having joined the 90% club (down 90% since listing) in just a year, along with a lot of other opportunistic, over-priced floats in 2021. However, the business looks potentially very interesting to me - a long-established niche brand selling high margin, own-designed maternity wear. The experienced new CFO has a lot to sort out (including inventories being far too high), but a positive going concern note suggests the risk of a discounted placing may not be as high as I feared. Risky still, but if the turnaround works, then this could have multibagger potential I reckon. Although it has to be said, I do get quite a lot of these wrong, because nobody can predict the future, and riskier shares are just that - risky.  

Belvoir (LON:BLV) - we're given an in line update today for H1. Everything looks fine. This is a really nice little group, well-run, and making acquisitions which are adding value. It's still reasonably priced too. Thumbs up from me. 

Graham's Section:

Flowtech Fluidpower (LON:FLO) (£77m) - this H1 trading update says that performance is in line with expectations, but the broker says that strong gross margins are offsetting a weaker revenue performance, and the EPS estimates for this year and next year are cut by mid single digits. This company tends to be a solid performer: it now needs to work on reducing its debt, which has risen significantly in the post-Covid environment as the company battles with difficult supply chains by increasing its inventory pile. Looks fairly valued at current levels.

Correction - Trackwise Designs (LON:TWD) (£14m) - Just a quick note to say that last…

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