Small Cap Value Report (Mon 12 July 2021) - SAG, STB, QUIZ, ULS, PHTM

12th Jul '21 by Paul Scott

69 comments 10841 reads

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

Disclaimer -

A friendly reminder that we don’t recommend any stocks. We aim to cover notable trading updates & results of the day and offer our opinions on them as possible candidates for further research if they pique your interest. We tend to stick to companies that have news out on the day, and market caps up to about £700m. We avoid the smallest, blue sky type companies, and a few specialist sectors (e.g. resources, pharma/biotech).

A central assumption is that readers then DYOR (do your own research) and discuss in the comments below. The comments, incidentally, sometimes add just as much value as the articles. We welcome all rational views, whether bull or bear!

It's helpful if you include the company name or ticker within reader comments, otherwise some readers may not be aware of what company you are commenting on.

Mello Monday

Reminder that our favourite fortnightly online investor show is on again this evening. Full details here.

Agenda -

Paul's Section:

Science (LON:SAG) - another positive trading update from this interesting owner/managed technology group. I like it, valuation still looks reasonable, and all 3 divisions are trading strongly.

Quiz (LON:QUIZ) (I hold) - Q1 update shows strong growth against lockdown 1 last year comps. Gross margins high, and net cash has grown in the last quarter. Looks strikingly cheap to me, especially when compared with online-only ITS & SOS. Problem leases were ditched last summer in a pre-pack administration, so now QUIZ is only operating from cheap turnover rent sites on short leases. Illiquid share though, so it can be very difficult to buy or sell.

Photo-me International (LON:PHTM) - good performance in H1, driven by restructuring rather than much top line growth. Strong balance sheet. The big question mark is what the long-term profit outlook is going to be?

Jack's Section:

Secure Trust Bank (LON:STB) - impairments reduced once more and profits now expected to be materially ahead of expectations. The valuation currently looks undemanding given the positive news.

Uls Technology (LON:ULS) - residential conveyancing software provider has brought in some new senior hires and made a 'transformational' disposal that gives it net cash of £24m and an enterprise value of £28.2m on…

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PerpetualValue123

12th Jul '21

Seriously?
You asking for discrimination of people and I need a lie down?
'stupidity/selfishness'
Make the risk-analysis for a 31 year old fit person. (stupidity)
and show me the evidence of reduced transmission (selfishness)
And can you engage on the official data from Public Health England itself?

Effortless Cool

I don't know why you consider it acceptable to call another contributor "disgusting" for daring to have a different view from you?

The vaccine does work well; that is surely an established fact now?

However, to be more precise, it works well against all existing COVID variants; it might not work so well against new variants.

The vaccine refuseniks are hugely more vulnerable to infection and therefore encourage the continued spread of the virus. This increases the likelihood of new variants emerging and, thus, puts those that are vaccinated at greater risk than would be the case otherwise.

In my opinion, any adult refusing the vaccine for anything other than valid medical reasons is both stupid and irresponsible. Stupid, because they unnecessarily put themselves at much greater risk of severe illness or death than if they had got vaccinated, and irresponsible because they are recklessly endangering the future health and mortality of those that have voluntarily had the vaccine.

I would not advocate discrimination against those who refuse the vaccine, however. I believe that the natural order of life already discriminates adequately against the stupid and the irresponsible.

My data is actually what it is. Tell me where it is wrong.

It is not your data that is wrong, it is your understanding of it. That has been clearly explained already.

I'm not calling it disgusting for having another view obviously.
I call it disgusting for demanding discrimination on an assumption that is unproven.
Show me a scientific study that transmission is reduced by the vaccine.
Maybe validate this assumption first, before discriminating people?

Stupid? As a 30-year old without underlying comorbidites I have very small risk.
Risk of myocarditis, blood clots, etc. is already shown to be present from the vaccine. Plus the unknown long-term risks.

Stupid? Uhh, no. A very well calculated risk-analysis that differs depending on your age.

https://www.who.int/news-room/...

Stupid? Uhh, no.

I guess readers will come to their own conclusion on that ....

ah yes, of course,

sorry, it's '92% effective' and blocks transmission completely.
Ban all unvaccinated people from social life

real-life data? Ahh, nahh, let's not look at that.

Amen!

bryans1311

Nevermind myocarditis risk from the vaccine. If you’re always this angry, you’re going to be at significant risk from cardiac failure or a stroke!

On a more relevant (but still covid-related) note, it looks like other parts of the world are starting to increase restrictions again. Eg. France tonight. Given the recent market doldrums are partially due to inflation worries and global monetary tightening, could a reversal of reopenings etc (perversely) boost markets?

GloucesterBob

now that was funny.

KevinS1

Martin,

Please stop posting continuous arguments about the vaccine. This is not a medical website - it is for serious investment discussion.

Lets please confine our discussions to investments and get back to talking about the pros and cons of companies.

Thanks

Kevin

DWit199

"Show me a scientific study that transmission is reduced by the vaccine."

Here you go...

Impact of vaccination on household transmission of SARS-COV-2
in England was published by Public Health England. It predates Delta but does provide some real world evidence of reduced transmission by the vaccinated. They conclude

These results show that the likelihood of household transmission is 40-50% lower for
households in which the index cases are vaccinated 21 days or more prior to testing positive
(compared to no vaccination), with similar effects for both ChAdOx1 nCoV-19 and
BNT162b2 vaccines.

Link to report

Harry Hindsight

In US there is $LIN Linde a large cap safer and diversified.

L&G Hydrogen Economy ETF (HTWG) an alternative. There's an ETF for everything it seems.

MichaelFBS

Gosh that is a first!

Martin please calm down.. The vaccine works and needs to be taken by all age groups.

Some maybe harmed by the vaccine but some people will have to take one for the team. That is the only way we can get back to normal.

gus 1065

Hi GaryC.

Looks as though £HTWG is a (specialised) index tracker replicating a global portfolio of 32 stocks in the Solactive Hydrogen Economy Index as adjusted from time to time. No discretion in the selection - its holdings appear to be weighted on respective market caps.

https://fundcentres.lgim.com/u....

The Hydrogen One IT offers discretionary management from „sector specialists“ (as yet unproven) with its primary USP being its focus on private equity investments in tandem with Ineos as co-investor. The ETF has a much lower management charge (c.0.5% compared to the ITs c.2.8%). Although both are hydrogen economy focused I think they are qualitatively different.

Gus.

johnmhughes

13th Jul '21

Thanks Gus.

14th Jul '21

Can you stop talking about exclusion and discrimination of people based on their medical status then?

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Small Cap Value Report (Mon 12 July 2021) - SAG, STB, QUIZ, ULS, PHTM

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