Small Cap Value Report (Thu 4 Oct 2018) - ABDP, EHG, IGP, DFS, BOOM, VLE

Re EHG and Barbados tax changes:
Effective July 1, 2018, the highest rate of corporation tax would rise from 25 percent to 30 percent.
Effective October 1, 2018, a health service contribution will be introduced at a rate of 2.5 percent on incomes, with 1.5 percent payable by employers and one percent by employees.
The incidence of the above will fall on EHG (and employees).

VAT on hotel accommodation will double to 15 percent from January 1, 2020, with a per night hotel room levy applying in the interim, which will range from USD2.50 to USD10 per night. In addition, a 2.5 percent product levy will be imposed on all direct tourism services. This will be collected by the providers of these services.

A 10 percent tax on all sharing economy transactions, such as those provided by Airbnb, Homeaway, Expedia, and others, will be imposed from August 1, 2018.

An airline travel and tourism development fee will be introduced from October 1, 2018. Passengers flying to destinations outside the Caribbean Community will pay USD70, while those flying to destinations within the Caribbean Community will pay USD35. This fee will be in addition to the departure tax.

The incidence of the second group will be on tourists rather than hotels, but may reduce demand for tourism.

Source: https://www.tax-news.com/news/Tax_Regime_Overhaul_Announced_In_Barbados____76835.html

I hold EHG.

One caveat to the finnCap research is that you do have to tick a qualification box the minimum for which is High Net Worth Individual. I have found that defined as:

If you earn at least £100,000 a year or have net assets excluding property and pensions of at least £250,000, you can self-certify yourself as a high net worth individual (HNWI) or a ‘sophisticated investor’.

from https://www.nelsonslaw.co.uk/h...

Hi Paul

Out of interest, when did you sell EHG?

On 12 Oct you said you were long:
https://www.stockopedia.com/content/small-cap-value-report-thu-12-oct-2017-ehg-nxr-rno-rbg-227808/

Back on 9 Jan you said you were happy to hold:
https://www.stockopedia.com/content/small-cap-value-report-tue-9-jan-2018-ehg-tpt-joul-nexs-tast-gaw-294743/

In reply to post #404414

On Elegant Hotels (LON:EHG), there was also a preliminary bid approach from the Accor Hotel group. So that's another consideration, that they could become a nice acquisition for one of the large chains, all who have been doing well recently and probably hungry for some growth in their portfolio.

Three cheers for FinnCap (and thanks for flagging it Paul).

In reply to post #404569

Why not "self certified sophisticated investor"?

Hi Paul

Any opinion on £TED? I know it's not a small cap but you have commented on it before ... Is today's drop an overreaction?

thanks
Mick

In reply to post #404639

I hadn't looked at Ted Baker (LON:TED) for ages and my recollection was that in stockrank style terms they were a High Flyer (high Quality and Momentum but little by way of Value credentials).

But no longer, the momentum has gone and they are now considered as a Falling Star.

And it is not just the shareprice that has lost momentum , earnings forecasts have been consistently downgraded throughout the year.

Not a happy picture.

I have hardly even skimmed the surface of the results, but I do note that Stock are showing a forecast 7% increase in revenue for the year but for the half year they are +3.5% (+5.5% at constant currency) .

With no obvious reason why H2 will be any better I would expect further downgrades to come.

On this basis I didn't look any further.

Hi Paul
Many thanks for the heads up re FinnCap
Best Regards
Martin

In reply to post #404364

https://twitter.com/MrContrarian

A succinct explanantion by one wiser than me.

Thanks for the comments on Intercede Paul as the company does look interesting. I went to the company's web site to find out more but found it quite difficult to evaluate the company. A key strength promoted on the web site appears to be that the company's "team of experts has deployed millions of identities to governments" and other organisations which sounds impressive but I haven't a clue how you measure the significance of this. Also I found that the video on the web site explaining the "PSD2 Hub" does not exist so I am none the wiser on what that is. I then clicked on the link on the web site "rapid.intercede.com" to find out about the company's RapidID technology and the link did not work! If Intercede can't even get their web site up to standard I wonder how they manage with more complicated tasks?

In reply to post #404569

I managed to sign up to Finncap as a 'sophisticated private investor', and so far they have totally failed to spot that I'm an idiot. 

There is a definition of "sophisticated investor" and I will be surprised if many people qualify:
Sophisticated investors
23.—(1) “Certified sophisticated investor” means a person—

(a)who has a current certificate in writing or other legible form signed by an authorised person to the effect that he is sufficiently knowledgeable to understand the risks associated with participating in unregulated schemes; and
(b)who has signed, within the period of twelve months ending with the day on which the communication is made, a statement in the following terms:
“I make this statement so that I can receive promotions which are exempt from the restriction on promotion of unregulated schemes in the Financial Services and Markets Act 2000. The exemption relates to certified sophisticated investors and I declare that I qualify as such. I accept that the schemes to which the promotions will relate are not authorised or recognised for the purposes of that Act. I am aware that it is open to me to seek advice from an authorised person who specialises in advising on this kind of investment”.

Does anyone know who would issue such a certificate?
www.legislation.gov.uk/uksi/20...

In reply to post #404694

And a supplementary question to John's (re the definition of "sophisticated investor"):

I notice the definition of a Certified high net worth individual is on this page:
http://www.legislation.gov.uk/uksi/2001/1060/article/21/made
It states a number of conditions (basically you've got either an annual income of over £100,000 or net assets after house, potential insurance benefits & pension etc. £250,000 or more). However the copy/paste certification text also has to be signed by the recipient’s accountant or by the recipient’s employer. Well I've got neither an employer or an accountant, as I'm early retired and do my own accounts / tax returns (always have done, which may be why I could afford to retire:)). So although I meet the conditions, I'd be unclear how to arrange the certification.

For the record, this is a rhetorical / academic question, since I took the pragmatic approach of clicking "High Net Worth" on the FinCap registration page and signed up anyway. Let the authorities come looking for me if they've nothing better to do!

In reply to post #404694

The FinnCap category is "self certified sophisticated investor", so the question of who issues a certificate doesn't really arise.

In reply to post #404544

The best place for Broker research in my opinion is Research Tree that includes many brokers to small/medium cap companies.

It is an aggregator of most research houses and Edison, FinnCap, Liberum, SP Angel, Zeus, N+1 Singer, Cenkos, Capital Network. WH Ireland are all on there.

I subscribe and if you haven't already taken a look I think they do a 30 day free trial from memory.

ps edit : I was just looking and I see 2 notes on Elegant Hotels (LON:EHG) for example so you can compare what different brokers think/say.

In reply to post #404739

Yes, I agree, Research Tree is a fantastic service. I'm a big fan.
It's very handy to have things in one place, and the £25 pm fee is insignificant, compared with one losing trade, if you didn't have important information. A lot of people tend to be pound stupid, but penny wise, in my view - re scrimping on important services such as Stockopedia & Research Tree.

In reply to post #404694

I think I can work out who would issue it for a "self certified sophisticated investor".

Isn't this all about shifting any liability for bad decisions on to the investor (where it should be)?

tried finncap.

it wont accept my password - along the lines of Eabcde01x[

Maybe it's upper case O rather than 0?