Small Cap Value Report (Mon 15 July 2019) - Tablets, GOCO, BPM, DPEU, TMMG, SWL, NTBR, INS, AMO

Monday, Jul 15 2019 by
61

Good morning!

A very busy morning in RNS-land, with a lot of "small" updates, including 3 relating to my own portfolio holdings.

This list is final:


Tablets

It's that time of the year for me to take my main holiday, so I'll be jetting off to Italy soon and you'll be in Paul's capable hands again for a while!

That's not investment-related, but perhaps of more interest is my research into the Tablet market. The only one that I have ever owned is an iPad from about 2012, possibly the iPad 3. It barely works any more (though perhaps I should be glad that it works at all, due to its age!)

I've been looking at some of the models currently for sale, with a view to finding one that I can bring to Italy. It's for light work purposes - I need to log in occasionally while I'm away to do a few small tasks, which should only take a few minutes. What I'd like to do is leave my laptop at home more often, and just bring a tablet instead.

It's easy to forget about the tablet market, since phone screens have become so big in recent years that the need for a mid-size device has diminished. But there is still a market for multi-functional devices with a screen size of 7"-12".

Anyway, despite being a huge fan of Apple ($APPL) when it comes to phones, there is actually no chance of me buying an Apple tablet. The choices available from Samsung, Huawei and Lenovo seem to be more than sufficient, and at very attractive price points. There's also the interesting possibility of the Amazon Fire HD 10. Or if I was going for a more expensive, heavy-duty device, I'd be inclined to go for the Microsoft Surface Pro.

This is a long-winded way of saying that I'm contributing to the trend whereby iPad sales were stronger…

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Disclaimer:  

All my own views. I am not regulated by the FSA. No advice.

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Goco Group PLC, formerly Gocompare.com Group plc, is a holding company. The Company's principal activity is providing an insurance price and product comparison Website. Its segments include Insurance and Strategic Initiatives. It operates a United Kingdom-based price and product comparison Website, Gocompare.com. Gocompare.com offers an online service that enables consumers to compare the prices and features of products. The comparison services provided under the Insurance segment include over 400 brands and are split into three categories: motor, property and other. The Company operates its own Website platform for car, motorbike, van, home and pet insurance comparison services, displaying a range of products offered by its panel of insurers. The products compared under the Strategic Initiatives segment include over 250 brands and are split into three categories: money, home services and other. The Company's subsidiaries include Gocompare.com Finance Limited and Gocompare.com Limited. more »

LSE Price
80.2p
Change
-1.0%
Mkt Cap (£m)
339
P/E (fwd)
12.3
Yield (fwd)
1.8

B.P. Marsh & Partners PLC is a United Kingdom-based specialist investor in early stage financial services intermediary businesses. The Company invests in various business, including insurance intermediaries, financial advisors, wealth and fund managers and specialist advisory and consultancy firms. It invests amounts of up to £5m in the first round. Its investment stage ranges from start up to more developed. It considers investment opportunities based in the United Kingdom, Europe, North America and Internationally. Its portfolio includes Asia Reinsurance Brokers Pte Limited, ATC Insurance Solutions PTY Limited, Bastion Reinsurance Brokerage (PTY) Limited, The Fiducia MGA Company Limited, CBC UK Limited, LEBC Holdings Limited and Summa Insurance Brokerage, S. L. GAM London Limited and Rathbone Investment Management Limited are the Company's investment managers. more »

LSE Price
265p
Change
0.8%
Mkt Cap (£m)
98.4
P/E (fwd)
n/a
Yield (fwd)
n/a

DP Eurasia NV is a Netherlands-based company, which operates as a franchisee in Turkey, Russia, Azerbaijan and Georgia of Domino’s Pizza. The Company offers pizza delivery and takeaway/eat-in facilities at its more than 570 stores that include corporate stores and franchised stores, which together are referred to as its system stores. The Company offers pizza products at a range of price points and adapted to local tastes. It also offers complementary products such as chicken, other side dishes and desserts, some of which are developed by the Group’s centre in Istanbul and subsequently adopted by other franchisees of DP Inc internationally. The Company also operates an online ordering channel. more »

LSE Price
86.8p
Change
1.2%
Mkt Cap (£m)
124.7
P/E (fwd)
17.6
Yield (fwd)
n/a



  Is LON:GOCO fundamentally strong or weak? Find out More »


34 Comments on this Article show/hide all

jonesj 15th Jul 15 of 34
1

In reply to post #492751

Preferring something compact, I bought a £300 Samsung 8" tablet a few years ago and it's fine for holidays. The cheaper ones tend to be too slow, particularly after the software is bloated via updates. [I gather Apple do this as well & am waiting for class action or regulators to act]

Using spreadsheets is slightly more difficult than with a laptop, but it's tolerable for very minor edits.

If someone made a slightly smaller & sensibly priced Windows clone of the lightest Apple macbook, I might be a customer, but nothing suitable exists. So I stick with the tablet for now.

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SundayTrader 15th Jul 16 of 34
1

In reply to post #492691

Would like to second this suggestion of Instem (LON:INS). The steady revenue growth is attractive. The ratio of capitalised development costs looks a bit high.

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simoan 15th Jul 17 of 34
2

If someone made a slightly smaller & sensibly priced Windows clone of the lightest Apple macbook, I might be a customer, but nothing suitable exists. So I stick with the tablet for now.

I have a rather long in the tooth Asus T100 Transformer 2-in-1. It runs Windows 10 and came with Office 2013 loaded for just over £200. When I go away I just take the tablet half and leave the keyboard at home. I guess it's similar to a Surface Pro but much cheaper and much less powerful. I'm not sure if Asus still make them, but if they did....  

EDIT: it looks like they do: https://www.asus.com/2-in-1-PCs/ASUS_Transformer_Book_T100TA/

All the best, Si

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timarr 15th Jul 18 of 34
2

Re: Goco (LON:GOCO)

I don't understand this, really. Under Open Banking there's no requirement to have a partnership with the bank at all, the APIs are available to any registered, authorised third-party and there's nothing any bank can do to stop access as long as customers give consent.

The only advantage to this I can see is that it allows the bank to market the service directly to their customers - so maybe it gets them over the hump of getting accountholders to sign up. But the real opportunity here is for Goco (LON:GOCO) or one of their competitors to integrate to all of the banks and start offering switching services to all UK accountholders.

timarr

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Graham Neary 15th Jul 19 of 34

In reply to post #492766

Thanks, I will get there a bit later. Breaking for lunch now. G

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davidtianjin 15th Jul 20 of 34

Regarding BPM does anyone know why the stockrank and qvm scores are all 0? Is this a quirk of the stockopedia system or does it genuinely regard BPM so unfavourably?

Thanks.

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JohnEustace 15th Jul 21 of 34
3

In reply to post #492786

BPM isn’t ranked because it is classed as a collective investment. Stockopedia doesn’t rank funds etc.

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sharw 15th Jul 22 of 34
1

It's a busy day for announcements, but one more I would flag up is an acquisition for Amino Technologies (LON:AMO) taking the company further into "higher margin software and recurring revenues".

The rather enthusiastic RNS is here. The CEO believes this is "moving us closer to a decisive market leadership position".

As a result finnCap has increased 2021 EPS from 15.5 to 16.1c and target price from 185 to 215p.

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Investornot1 15th Jul 23 of 34
2

In reply to post #492731

You can load the Play Apps store onto the Fire HD - just google it fairy straightforward and that gives you full access to all the Android Apps.

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rwalford 15th Jul 24 of 34
1

Nice trading update from EKF Diagnostics Holdings (LON:EKF) today. It includes the following:
"Net cash and marketable securities as at 30 June 2019 are also slightly ahead of management expectations and were approximately £15m. This figure includes approximately £3.25m of Renalytix AI plc securities (2,677,981 shares) held at cost price. These shares have a value of c. £8.7m at the last practicable date prior to this announcement, giving cash and marketable securities at current market value of over £20m."
In other words, they have chosen not to mark their Renalytix AI (LON:RENX) shares to market, meaning that there is £5.45m of value lurking within this asset alone. (Renalytix AI (LON:RENX) was spun out of EKF Diagnostics Holdings (LON:EKF) a few months ago and has since risen by 220%)
Not surprisingly, the share price is up a bit today.

I hold both EKF and RENX. Both have Christopher Mills as a Director.
Ricardo

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WDWombat 15th Jul 25 of 34

the Amino acquisition looks expensive at Eu21mn but if it works will give a mighty boost to RoCE in about a year's time. They have been sitting on a load of cash and seem to be sorting out problems. The company has a clear strategy on moving away from set top boxes and more into varied media streaming/software so this is in the direction indicated.
On Northern Bear it is worth mentioning that the prelims release is accompanied by some clear and useful statements regarding (especially) average net debt (rather than just period end which they concede can be very misleading) and treatment of longer dated receivables. Generally management is acknowledging that outside shareholders deserve a bit more handholding than has been forthcoming to date. This is welcome. I would rather be in here than Sosandar any day of the week (famous last words!).

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Graham Neary 15th Jul 26 of 34
1

In reply to post #492766

Hi Julian/ST, I've had a look at Instem (LON:INS), it's not one I've looked at before but thanks for flagging it! All the best. G

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jonesj 15th Jul 27 of 34

Thanks for mentioning B.P. Marsh & Partners (LON:BPM) again Graham. This time I'm interested in digging further.

Positives: Low PE, management skin in the game, clear rules about share buybacks at only discount to NAV and a commendably prominent warning about JSOP shares on the font page of their website.

Negatives: Share price CAGR since listing appears to be only just over 5% per year & that hasn't been compensated for with a large dividend. I need to look into this further.

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bobsandy12 15th Jul 28 of 34

Thank you Graham. BTW w are in Italy remote part of northern tuscany until mid august.....if you are in reach let me know and maybe swing buy for lovely home cooking and tranquility

Best

Bob

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Graham Neary 15th Jul 29 of 34

Hi Bob! I'll be in central Italy (Naples region) and Rome, but thanks anyway! Enjoy the summer. G

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herbie47 15th Jul 30 of 34

I have a iPad mini, it is good for travelling, not too small, about 7" screen, last time I looked you could get them for about £250.

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rmillaree 15th Jul 31 of 34
1

Sports Direct International PLC - 

Just noticed Sports direct delayed releasing their results today blaming auditing delays - it would be funny if it was the newcastle* branch of Grant Thornton tasked with doing the audit - i guess that would be a by the book nice comprehensive list questions and answers before everything is signed off :)  *  substitute similar location of your choice where Mr Ashley has rubbed up bods the wrong way.

I am glad i sold this share when he tried to morph a successful cash cow of a business into something less successful but more trendy. Price is down nearly 75% from its peak and they aren't exactly brimming with confidence today that  things will pan out in line with how they previously guided the market. 

Sports Direct believes its accounts and their audit to be at an advanced stage. However there are a number of key areas to conclude on which could materially affect the guidance given in Sports Direct's announcement of 13 December 2018.
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millen 15th Jul 32 of 34

I have an Amazon Fire and it's basic in the extreme. OK for web browsing and emails viewing and books reading and Readly. But for anything at all 'business like' is a disaster. I thought I could use it to store meeting packs before a meeting but I found it hard to get Documents organised. It can open Words reasonably well but fails on pdf's - each screen seems to show 4 pages, which makes it illegible. Maybe there's a Setting some where I haven't sussed? Also found it hard to download ordinary Android apps - Amazon's library seemed too restrictive though I gather the techies can 'jailbreak' into it.

For any tablet, you need to decide whether to have a SIM card for 3G or rely on external WiFi (or hotspot from your phone).

That said, the Amazon is cheap as chips and the pop-up advertising on the login page easy to gloss over.

There used to be something called a Hudl which had a good reputation but I think it's been discontinued and the versions available on eBay will be pretty manky by now.

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davidtianjin 15th Jul 33 of 34

In reply to post #492796

Thanks!

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Funderstruck 16th Jul 34 of 34

Hi Graham; Late in the day but for vacations i use the Samsung Galaxy Tab 10.5 in conjunction with the Mobile S6 Both very reliable and useable. The Samsung folding carry case is a must, beautifully designed. For both when typing a lot i use a Bamboo stylus. And thanks for all your reports which i find particularly helpful. Have a great vacation.Chow.

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 Are LON:GOCO's fundamentals sound as an investment? Find out More »



About Graham Neary

Graham Neary

Full-time investor and independent analyst. Prior to this, I spent seven years in the financial markets as an analyst and institutional fund manager. I'm CFA-qualified, also holding the Investment Management Certificate and the STA Diploma in Technical Analysis.Away from finance, my main interests are recreational poker and everything to do with China, especially Mandarin Chinese. more »

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