Good morning, it's Paul here with Thursday's article.

Estimated timings - early start, and needs to be finished by noon, because I have to head into the City for a 1 pm meeting with Intercede (LON:IGP) management (in which I have a long position). If there's anything interesting from the meeting, I'll let you know at a later date.

Update at 11:57 - today's report is now finished.

Malvern International (LON:MLVN)

(At the time of writing, I have a long position in this share)

Profit warning. At c. £2m mkt cap, it's too small & illiquid for a full section.

My reaction on reading the profit warning was that it's not too bad. A setback, for sure, but does that really justify a more than 90% fall in share price since the peak just over a year ago? I would say not.

Underlying trading is currently around breakeven, and there are good reasons to expect a return to profit in 2020 (e.g. disposal of loss-making Malaysian operation, and improved forward bookings). Therefore, I'm leaning towards buying some more of these, once I've double-checked all the figures. The way I approach situations like this, is to ignore the fact that I already hold shares in it. When assessing the profit warning, I look at it completely fresh, in terms of would I buy today, if I didn't hold it already? That's the crucial thing, as it takes the emotion out of it, and stops you throwing good money after bad.

Very small & illiquid, and so far the turnaround under new management is proving a struggle.

Motorpoint (LON:MOTR)

Share price:  262p (up 2% today, at 10:27)
No. shares:  90.8m
Market cap: £237.9m

Interim results

Motorpoint, the largest independent vehicle retailer in the UK, today announces its unaudited interim results for the six months ended 30 September 2019 (FY20 H1).

It's pleasing to see the share price up about 30% since I last reported on a possible buying opportunity here on 6 Sep 2019, relating to a spike down on the founder selling shares to fund a divorce settlement.

I like the business model, of selling nearly new cars at attractive prices, from large sites, known as car supermarkets.


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