Good morning, it's Paul & Jack with you today.

Agenda -

Paul's section:

Reach (LON:RCH) - A confusing trading update, showing the revenue mix shifting more towards lower margin print revenues, with advertising & circulation down. Nothing is said about profitability, but Singers has lowered forecast profit by 6%. Higher paper costs, and lower advertising revenues are the main negatives. Looks very cheap now, might be worth a nibble?

Seraphine (LON:BUMP) - A third profit warning from BUMP, in less than a year of being listed. Putting aside the negative emotional reaction, I think this share is starting to look interesting in valuation terms. The new CFO is experienced, and should be rectifying sloppy financial & operational controls. High risk (I think it needs a placing), but possible high reward longer term? 

Luceco (LON:LUCE) - I take a look at yesterday's profit warning. Customer stockpiling last year, of high margin products, is unwinding this year. It surprises me that this has taken LUCE by surprise. FY 12/2022 forecast EPS is dropped considerably, by a third. Shares now look quite good value, on more realistic forecasts, assuming no further profit warnings occur, which is a big assumption right now!

Smiths News (LON:SNWS) - turnaround is proceeding as planned, at this cash generative, ultra low PER share. Highly attractive (and rising) divis of 8%+, covered over 3 times. What's the catch? it's in structural decline, like RCH, and cost-cutting can't go on forever. On balance though, I like it.

Jack's section:

Quixant (LON:QXT) - order intake is ‘significantly’ ahead of last year across both businesses and the group’s net cash position has allowed it to manage a difficult supply chain. There’s a 537bps spread, which is a bit of a shame as I think there are a few points here which flag the group up as an intriguing candidate.

Trifast (LON:TRI) - solid results, with Q4 revenue up by around 15%. The valuation has fallen and the shares are now back to their Covid lows, so there could now be more of an opportunity for patient investors. Challenges persist however and, while Trifast has so far been able to pass on costs, macro conditions are clearly weighing on the shares.

Explanatory notes -

A quick reminder that we don’t recommend any stocks. We aim to…

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