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

Mello is back tonight and David will be interviewing Richard Crow (you might know him as Cockney Rebel on Twitter). Richard has been investing for a long time and is a great character, so it will be interesting to hear his thoughts on current market conditions.

Agenda -

Paul's Section:

Ideagen (LON:IDEA) - congratulations to shareholders here, with a 350p recommended bid announced from HG. Very unusually, IDEA announces that it is continuing discussions with another potential bidder, so I wonder if there's a chance of an increased bid?

Midwich (LON:MIDW) - in line with expectations trading update, and a confident-sounding outlook. No signs yet of any downturn. The business is doing well, but the valuation looks full, given macro uncertainties. It's only a low margin distributor, so it doesn't interest me at the current price.

Water Intelligence (LON:WATR) - a trading update that is a bit ambiguous in places. The valuation still looks much too high, to me. WATR has a good long-term track record though, and is accelerating expansion now. So maybe the punchy rating will turn out to be justified?

Jack's Section: 

Cerillion (LON:CER) - strong interim results continue the positive momentum at Cerillion. The shares touched 600p recently and I missed that window as they have since bounced back. A high quality stock with double digit growth - an attractive combination - but I’m mindful of the valuation and a fall in orders and software revenue could cause a wobble. The group has real potential for long term organic growth though, so it's on the watchlist.

Iofina (LON:IOF) - signs of progress with good net debt reduction but there are also a couple of issues. A hemp-based joint venture is unrelated to the core business and has been written off. Results depend on iodine spot prices, which I don’t have a view on. The share price is volatile and the stock is relatively illiquid. So it’s higher risk, with a chance of doing well, but probably not one I will prioritise.

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…

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