Small Cap Value Report (Mon 17 Oct 2022) - ASC, EVE, MADE, BOOM, VCP, RM.

17th Oct '22 by Paul Scott

61 comments 7570 reads

Good morning, from Paul & Graham. I'm interviewing the CEO of Sanderson Design (LON:SDG) at 16:00 today, so I got up early to prepare my questions. Should be interesting, I really like this share (no current holding). Audio interview is now up, here.

Podcast - as usual this went up on Saturday, with just a brief market overview, then most of it covering numerous shares that were in last week's written reports here. The mystery share (my best idea of the week) is already marked in Thursday's report.

I've got to share this with you. I was telling off someone on Twitter for being disloyal to the UK, but his response floored me (rolling around laughing!). You might enjoy this -

Agenda

Paul's Section:

ASOS (LON:ASC) - this eCommerce fashion business responds to weekend press coverage that it's negotiating an amendment to its banking facilities. The press also report that trade credit insurance is tightening. Looks ominous to me, so I'd steer clear for now, due to elevated risk of a discounted fundraising.

Made.Com (LON:MADE) - another update from this almost-bust eCommerce furniture retailer. It says several potential deals have been indicated by buyers, but also that any deal would require immediate interim financing. So why wouldn't buyers just wait for it to go into administration imminently, then buy it for less, and without liabilities, from the administrator? I think this is extremely high risk, hence remains uninvestable. People could get lucky though, you never know for sure how things are going to pan out.

Audioboom (LON:BOOM) - Q3 update sounds positive, but Q3 revenues have actually slipped sharply from earlier this year. It's still trading profitably though, and has an increased cash balance. To be fair, new management have done a good turnaround here, but podcast publishing is a crowded space, hence is low margin. I'm not sure there's much of an investment opportunity here. Could be a takeover target though?

Graham's Section:

eve Sleep (LON:EVE) (£1m) (no section below) - this story reaches its almost inevitable conclusion, as the administrators are called in “to preserve value for creditors”. Additional funding was needed this month, but was not forthcoming. Commiserations to anyone still holding this. But in truth, this one never really got off the ground,…

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Mark B1

17th Oct '22

I think CHRI55's compulsion to find a negative spin of a welcomed and helpful morning update is far more unhealthy

jmallin1972

Wasn't the point introduced in the SCVR. Shouldn't the twitter exchange be left on twitter #BlurredLines

planetx

Not sure who is selling just cannot see it being Harwood as Christopher Mills doesn’t seem the type .

What is also interesting is this feels a bit of a bear trap tempting selling by the market .

Currently no shares to buy , not been many all morning but I can sell 90k in one hit at 344p.which is very high for Avingtrabs , meaning the market wants to buy as much as it can get at these prices not sell it .

My guess is a strong bounce off these levels especially if there is no market capitulations in the next week .

jamesalastair

You bought it up.

davisj99

Boohoo (LON:BOO) - Paul no criticism intended here, just curiosity. You say:

However, it’s now clear that this was all down to the pandemic eCommerce boom, and look how profitability has since melted away (similar story for Boohoo (LON:BOO) [I hold] unfortunately, and the whole sector actually, here and overseas)

In that case how do you justify retaining a position in BooHoo?

simoan

Shocked as I am by what is happening in English club rugby, the upside for me is that Begbies Traynor (LON:BEG) are acting as administrator for Worcester Warriors and Frp Advisory (LON:FRP) have just been announced as administrator for Wasps. Every cloud and all that...

TheFloatingInvestor

Yes Begbies Traynor (LON:BEG) surely is going to have a busy couple of years and am not sure since the slight sell off of late it's not a bit overdone. Good broker upgrades so I consider it a decent medium term upside at the current S.P....Time will Tell.

bullhead

This comment has been moderated

Thanks

Slovakia is meant to be beautiful

Graham Neary

Hi Berksbee - best of luck with RM. There is always hope. It is noteworthy that they are supposed to be able to help schools with IT projects, but they are unable to do their own IT project properly! There must be a story to tell in terms of how they got it so badly wrong. Best wishes. G

Thanks JASVFS, I'll take note of this to potentially cover as a backlog item. G

Brookeda

Yes particularly out of the cities (which aren't anything that special.) If you go up into the mountains its lovely and it's sort of out of the tourist train apart from stag weekends in Bratislava. The cost of living there is great (although we'll see what it looks like after inflation) and you can still have a good night out for less than twenty pound.

Paul Scott

I don't have to justify it to anyone! But I think the 90% fall in share price is considerably overdone.

It was a joke, to make people laugh. A nice way to start the day. Not an opener for a heated, pointless debate.

I am incredulous that anyone would question the use of MrC's daily RNS snapshot! It's gold dust, first thing every day.

His system today read 14 detailed RNSs, and produced a neat summary within about 30 minutes, before the market opened.

Nobody could possibly read & digest 14 RNSs in anything like that short time. That's the (unbelievably obvious!) reason why people find MrC's posts so incredibly helpful.

I do despair sometimes.

MrContrarian

I read more than the number I post! And it's 90% manual most days.

Antehelion

£AWE (stupid ticker tagging isn't working for me) Alphawave IP

not an update, but for those who are swayed or interested by large director purchases, £580,000 purchase by the Sutardja family (Exec Director) taking their holding to 12.95%

DaviStoVest

... and greatly appreciated ... with the added bonus of an acerbic early morning witicism.

I believe there will be many on Stockopedia who have made or saved money as a result of an alert in your (more-or-less) daily SCVR post that they might otherwise have missed or caught too late.

We should all be grateful ... and, save one obvious exception, I believe we are.

JimTech

18th Oct '22

Thanks, Paul. I have read and listened to your mentions of Aquis Exchange (LON:AQX) . You said that you didn't know what its 'Members' were and that your broker said that the Aquis Stock Exchange only saw low volume. But there are three divisions with the Stock Exchange only being one. Consequently, I thought you might be interested to learn more about the business at the Aquis Exchange (LON:AQX) Capital Markets Day.

Aquis Exchange (LON:AQX) It is not a jam tomorrow stock. It is profitable in all three divisions, it is investing for the future and seeing year-on-year growth with recurring revenues.

In many ways it is similar to £BKS.

Thanks Paul. Sorry if i used the wrong term "justify", I meant to say what is your reasoning behind your position. All cleared up now.

Small Cap Value Report (Mon 17 Oct 2022) - ASC, EVE, MADE, BOOM, VCP, RM.

Agenda

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Paul Scott

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