Small Cap Value Report (Thu 14 Feb 2019) - WYG, FLTA, TRI, RTN

Thursday, Feb 14 2019 by
128

Good morning!

I'm not going to waste my time responding to the tripe in yesterday's comments section (I can't anyway, as Ed has closed the thread). Incidentally, I suggested to the boss that Stockopedia restricts the thumbs down facility to paying subscribers only. He agreed, and that's been implemented now. So if readers want to demotivate the writers here with a thumbs down, then you have to pay up for the privilege!

I think more generally that dishing out thumbs downs is a very negative thing to do. It upsets the recipient, and achieves nothing worthwhile. If you don't like something, then just ignore it. Readers who leave comments below, which get thumbs downs, often tend to post a second, aggrieved, response.

Let's make an effort to be a bit more positive with our interactions here, and return to being a happy, mutually supportive, place!




Patisserie Valerie

A post-script to this scandal. An announcement today says that Patisserie Valerie and Philpotts have both been sold, to management (backed by an Irish fund) for a measly £13m, of which £3m is deferred.

It's beyond astonishing that Luke Johnson's flagship company turned out to be a fraud. Whether he was aware of the falsified accounts or not, I still think he has to shoulder a good deal of the responsibility. That is because the company very much rested on Johnson's reputation, and of course its impressive (but fictitious) profitability.

It doesn't seem right that management have been able to buy it for a song, and now have the opportunity to re-build the company, minus its loss-making stores, which will probably make them rich. Other potential buyers (e.g. Mike Ashley) complained that they have no meaningful figures to work on, so would be buying the company blind. Whereas management who have bought it, are probably the only people who are likely to know what the real trading figures look like.

Meanwhile shareholders are left with nothing. The whole thing is absolutely scandalous. I certainly won't ever grace this company with my presence, as a paying customer, in future. Pity, as their English Breakfast tea, and strawberry gateau make a delicious interlude when trudging around the High Street. So once the fuss has died down, I might forget about boycotting Patisserie Valerie!

Which brings me on to;


Directors selling

I met the management of a micro…

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As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested. ?>


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WYG plc is a global project management and technical consultancy. The Company is engaged in creating and managing strategic assets by engaging with clients in the early stages of a project, and continuing to advise them throughout its lifecycle. The Company's segments are UK; EAA (Europe, Africa and Asia), and MENA (Middle East & North Africa, including Turkey). The Company offers an array of services, including aquatic ecology, brownfield regeneration, climate change adaptation, development management, energy management, flood risk assessment, health and safety management, intelligent transport systems, landscape planning, management training, nuclear decommissioning and asset care, outsourcing, planning applications, rural and agricultural development, and social and civil society development. It serves sectors, such as defense and justice, energy and waste, environment, mining and metals, transport, social development and infrastructure, and urban and commercial development. more »

LSE Price
16.75p
Change
 
Mkt Cap (£m)
12.3
P/E (fwd)
3.0
Yield (fwd)
11.1

Filta Group Holdings plc is a provider of various services to national and independent commercial kitchen operators and owners. The Company's principle service is FiltaFry, which is the micro-filtration of cooking oil, the vacuum-based cleaning of deep fryers and full Fryer Management. Its business operations are within the United Kingdom and the United States. The United States operations are operated as a franchise network, while the United Kingdom activities are operated under both franchise and direct sale business models. In addition to FiltaFry, Franchise Owners offer other fryer management services provided and managed by it, including waste cooking oil collection and removal (FiltaBio) and the supply of cooking oil (FiltaGold) and non-fryer related kitchen services, including the provision and servicing of moisture absorption panels for refrigeration units (FiltaCool). Its drain-related services include live bacteria drain dosing. The Company has over 180 Franchise Owners. more »

LSE Price
236p
Change
 
Mkt Cap (£m)
68.3
P/E (fwd)
20.0
Yield (fwd)
1.5

Trifast plc is a manufacturer and distributor of industrial fastenings and category C components to a range of industries and customers. The Company designs, manufactures and distributes mechanical fasteners on a global basis to both distributors and to original equipment manufacturer (OEM) assemblers. Its geographical segments include the United Kingdom, Europe, the United States and Asia. It owns a range of fastener solutions for specific industries and applications, including fasteners for sheet metal, fasteners for plastic, security fasteners, thread-locking nuts and micro-diameter fasteners. Its brands include Pozidriv, Polymate, Binx and Hank. Its products are used in various markets, such as automotive, electronics/telecoms and domestic appliances. It operates in Norway, Sweden, Hungary, Ireland, Holland, Italy, Germany, Poland, Malaysia, China, Singapore, Taiwan, Thailand and India. Its subsidiaries include Trifast Overseas Holdings Ltd and TR Formac Fastenings Private Ltd. more »

LSE Price
189.75p
Change
-0.9%
Mkt Cap (£m)
233.3
P/E (fwd)
12.9
Yield (fwd)
2.3



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


68 Comments on this Article show/hide all

purpleski 14th Feb 49 of 68
12

Hi Paul

I have not looked back at yesterday’s report but concerning “I suggested to the boss that Stockopedia restricts the thumbs down facility to paying subscribers only. He agreed, and that's been implemented now.”

I am really pleased to hear this.

I personally think your reports should be subscriber only. It seems crazy to give them a way for free but there is probably some rational that I am missing.  Perhaps other Stockopedia subscriber readers could give their thoughts. 

They are incredibly valuable and the only thing I read on a daily basis without fail.

KR

Michael

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mmarkkj777 14th Feb 50 of 68
7

Great to hear about Zane. A very worthy cause in my book and one I'm happy to support.

On the thumbs up/thumbs down, whist I admit they could be a de-motivator for someone new (I experienced this with some innocent posts when I first joined, and when I challenged them someone kindly advised me that they thought I was a fly-by-night ramper). I was just being, maybe, over-enthusiastic), but it did mean I revised my posting approach. However since then I have come to regard them as a reasonable litmus test of the posts. Admittedly, sometimes they can snowball, but overall they are a reasonable indicator of the reasonableness/suitability of the post.

Personally, if someone disagrees with something I post I would much rather them explain why in a reply, which is even better feedback, and I usually try to do the same for others. Its all about opinions, but should not degrade into trolling. Stocko is much better than that.

John, excellent idea about threads for directors dealings. I'll be sure to check that out regularly.

The Stocko discussion section is one of the best around and its in all our interests to keep it so.

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Gromley 14th Feb 51 of 68
20

In reply to post #447888

I personally think your reports should be subscriber only. It seems crazy to give them a way for free but there is probably some rational that I am missing. They are incredibly valuable and the only thing I read on a daily basis without fail.

I think there is some rational that you are missing - Paul's view have for decades been freely available and whilst we need to be crystal clear that Paul (nor Graham) offer any kind of tipping service the views on SCVR are extremely valuable to many.

The bottom line  though is that  without Paul's views being freely available here I would probably not have discovered Stockopedia (or at least probably a few years later) . It was only on arriving here that I discovered the wider value of stockopedia and then subscribed.

The crux though (for me at least) is this - do I value the SCVR? - very much. Would  I pay for it as a stand-alone offering? Actually probably not (unless the fees were very low), simply because there are so many sources of alternative information and views.




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Paul Scott 15th Feb 52 of 68
25

In reply to post #447908

Gromley,

As an old subscriber, I can't believe you wrote this;

The crux though (for me at least) is this - do I value the SCVR? - very much. Would  I pay for it as a stand-alone offering? Actually probably not (unless the fees were very low)simply because there are so many sources of alternative information and views.


Well #### you then! I won't bother writing tomorrow's report.

Paul.

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wilkonz 15th Feb 53 of 68
2

Paul,

With reference to Patisserie Valerie, this amused me

Whereas management who have bought it, are probably the only people who are likely to know what the real trading figures look like.

Whilst this may now be true, until recently it was clearly not true (unless they were all conniving).

William

PS Completely agree about getting rid of the thumbs down button.

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leoleo73 15th Feb 54 of 68
13

I am another person who would not have become a Stockopedia subscriber if it wasn't for Paul (and latterly Graham). I'm very happy that some of my subscription helps pay for the SCVP, but also very happy that it is a freely available resource. In general I would not like to miss out on comments from non-paying members, but I see no downside to blocking them from thumbs down.

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peterg 15th Feb 55 of 68
10

I'm no fan of thumbs down. But frankly, I'm appalled by the idea the thumbs down should be limited to paying subscribers, but that anyone can vote up (like ADVFN). It's an outrageous idea, effectively meaning only a small subset of those who can vote up are able to vote down. I can see why the owners of a site might like that idea - it will ensure the impression that the vast majority of posts are welcomed (something that is the case anyway, and the votes indicate to be the case with the current system).

I can see an argument for doing away with down votes altogether, but to have them and then fix the voting stinks. If you want to keep our respect, don't do it.

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pka 15th Feb 56 of 68
7

"I'm no fan of thumbs down. But frankly, I'm appalled by the idea the thumbs down should be limited to paying subscribers, but that anyone can vote up (like ADVFN)."

The obvious solution is to restrict both thumbs down and thumbs up to paying subscribers.

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Edward Croft 15th Feb 57 of 68
23

In reply to post #448143

Here are some hard facts.

Last month - comments made on Stockopedia were 90% by subscribers. Votes were 80% by subscribers.

The non-subscriber community here is rapidly diminishing - most have become subscribers. The subscriber community is growing.

So we'll probably switch off non subscriber access soon.

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doublelutz 15th Feb 58 of 68
6

I would do away with thumbs down. If someone wishes to disagree they should write a couple of sentences to say why.

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willhampson 15th Feb 59 of 68
2

In reply to post #448223

I'm completely with you doublelutz. I think I got something like 20 red arrows for proposing this early last year. In fact, in checking I see it was 18 red arrows haha.

@Ed on post 57. I for one am perfectly happy for the SCVR to become subscriber only. Welcome news, I think.

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Snoo 15th Feb 60 of 68
6

In reply to post #448203

Not sure how the financials stack up, but I greatly value Paul and Grahams input, and this is one of the things that help to differentiate Stockopedia (as well as the ratings).

Would it be possible to bring in more people like Paul/Graham to cover the parts that they don't (such as the large caps)? If you go on the 'discuss' button on some of the big shares there are few discussions, and not many insights.

Additionally, are there opinion pieces covering other countries? I am sure that if a daily analysis of these was put in the discussion for us to read it might induce some of us to add additional countries to our subscriptions.

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jonesj 15th Feb 61 of 68
4

In reply to post #448223

Generally I will only give a thumbs down for spam, off topic or rude disruptive posts.

By and large, this seems to be the way most others behave. If a post has about 10 thumbs down, there is usually a reason and the person who got 10 thumbs down should probably look at what they have written themselves.
If people were required to explain thumbs down, we would have much less harmony on the board, as people would soon be arguing over the explanations.   We also need some mechanism for readers to flag disruptive behaviour.

What we have works well as the site is usually free from pointless bickering.    

It will continue to work well if we all remember disagreement over the merits of a stock is a good thing, but should always be polite and constructive.

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Gromley 15th Feb 62 of 68
66

In reply to post #447938

Gromley,
As an old subscriber, I can't believe you wrote this;


The crux though (for me at least) is this - do I value the SCVR? - very much. Would I pay for it as a stand-alone offering? Actually probably not (unless the fees were very low), simply because there are so many sources of alternative information and views.


Well #### you then! I won't bother writing tomorrow's report.
Paul.

Hmm - clearly not well phrased by me and in fact probably an uneccesary aside, not intended quite as it came across.

So just to be clear, personally, I'm unlikely to pay more than a token amount for ANY interpretive service as it changes the dynamic. That's just my personal stance and others will clearly differ. It probably is quite perverse to say that I highly value something, but wouldn't pay for it - but hey I don't claim to be always logical.

Paradoxically, I do actually indirectly pay for SCVR as a stocko subscriber. 

And the rub is that had SCVR not been freely available I probably wouldn't have  found my way to Stockopedia at all and certainly not stuck around long enough to decide the overall package was worth subscribing to.

So for me it seems there is still a commercial case for keeping SCVR freely available, but that's clearly a decision for Ed and the team. As an established subscriber now, it's largely moot to me, except for the concern that if 'new blood' is choked off on the boards we could become an entrenched, self congratulatory bunch - it seems to me that there are examples of this elsewhere.

Anyway Paul - I hope you enjoy the day off - I'm not sure whether to apologise for being part of the cause of it or to say that you can thank me later!


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ken lowes 15th Feb 63 of 68
2

In reply to post #448203

I never realised that non-subscribers were on the site- I did realise that some who pontificate about certain strategies such as Minervini haven’t even bought the book so it would be a good thing to get rid of anyone who either is unwilling to pay, obviously an investor in their own Dreamtime or can’t afford it. The internet is awash with free advice which is worth what you pay for it.

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mmarkkj777 15th Feb 64 of 68
1

In reply to post #448473

Hi Ken,

Whilst I agree that Stocko is of real value to investors, and I for one am happy to pay for it and will continue to do so, I don't agree that free advice is worth what you pay for it.

There is a lot of free information out there and free recorded webinars, podcasts and Utube videos etc., (including some by Mark Minervini , no less) providing good advice. There is also, I know, a lot of scammers who try to reel you in with free titbits. Like most things in life, in investing, you have to learn what's good and what's not.  

Stocko is good IMHO, but there are pockets of other good stuff too (for free), amongst the dross.

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sharw 15th Feb 65 of 68
1

It is obvious that a number of people who have commented here have not seen Ed's post this morning on yesterday's report. Here it is:

Here are some hard facts.

Last month - comments made on Stockopedia were 90% by subscribers. Votes were 80% by subscribers.

The non-subscriber community here is rapidly diminishing - most have become subscribers. The subscriber community is growing.

So we'll probably switch off non subscriber access soon.

https://www.stockopedia.com/content/small-cap-value-report-thu-14-feb-2019-wyg-flta-tri-rtn-447283/?comment=57#57

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Monty9 15th Feb 66 of 68
2

In reply to post #447818

Some interesting thoughts, clearly you are frustrated with the AIM experience.
I have invested mostly in AIM companies since the mid 1980's, achieving positive (but volatile) returns. I do believe there are some positives :
1. The light regulation should allow the process to be cheaper, making the very small companies viable.
2. The companies are easier to understand.
3. If business goes even reasonably well they can yield eye-watering returns.
4. Access to management is feasible either in Mello type meetings / conferences or by correspondence.One can develop confidence in the competence and integrity of the team (Judges Scientific spring to mind here). This, I think is the key to achieving long term success. The light regulation allows a lot of obvious 'cons', lifestyle companies and even frauds to operate. If you are able to form confidence in the team either by personal experience or a strong reputation, your odds improve dramatically.

So there is is - in the wild west of the AIM market back people you can trust.

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Elsie 15th Feb 67 of 68
4

In reply to post #447908

Gromley

I can't speak for you, but time is the most valuable thing I have.

You are correct that there are many sources of alternative information and views out there, and yet if I only have enough time in a day to read one of those sources it is the SCVR. How do you value that?

Thank you Paul. Thank you Graham.

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David Woodhouse 15th Feb 68 of 68
1

Couldn't agree more on director selling. One of Charlie Munger's golden rules.

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About Paul Scott

Paul Scott

I trained as an accountant with a Top 5 firm, but that was so boring that I spent too much time in the 1990s being a disco bunny, and busting moves on the dancefloor, and chilling out with mates back at either my house or theirs, and having a lot of fun!Then spent 8 years as FD for a ladieswear retail chain called "Pilot", leaving on great terms in 2002 - having been a key player in growing the business 10 fold. If the truth be told, I partied pretty hard at the weekends too, so bank reconciliations on Monday mornings were more luck than judgement!! But they were always correct.I got bored with that and decided to become a professional small caps investor in 2002. I made millions, but got too cocky, and lost the lot in 2008, due to excessive gearing. A miserable, wilderness period occurred from 2008-2012.Since then, the sun has begun to shine again! I am now utterly briliant again, and immerse myself in small caps, and am a walking encyclopedia on the subject. I love writing a daily report for Stockopedia.com on most weekday mornings, constantly researching daily results & trading updates for small caps. Cheese! more »

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