Small Cap Value Report (Thu 7 Dec 2017) - placeholder

Wednesday, Dec 06 2017 by

See you in the morning! I'm busy watching the Apprentice, so cheese.

Regards, Paul.

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31 Comments on this Article show/hide all

iwright7 Thu 10:26am 12 of 31

Another one for RM (LON:RM.) which looks cheap.

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Ramridge Thu 11:09am 13 of 31

RM (LON:RM.)  's pension burden is clearly the problem. Based on the interims, the total deficit has come down to £22.2m , a reduction of £12.6m. However the deficit reduction contributions have remained the same at £3.6m p.a.
If market conditions remain the same, the annual contribution rate is likely to fall at the next triennial valuation in 2018.

Taking a conservative view, a £3.6m p.a. charge against an adj. operating profit of £14m is some 26%. That's a large chunk of profit taken up by a pension cost annually. The operating margin is around 10%. A bad year could hit their eps disproportionately.

I will be watching from the sidelines.

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clarea Thu 12:03pm 14 of 31

RM and Headlam would be great thanks

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andrea34l Thu 12:06pm 15 of 31

In reply to FREng, post #11

IMHO, the reaction to the Dillistone (LON:DSG) announcement is ludicrously frothy considering that it contains no financial guidance in relation to the effect of the GatedTalent start-up product on the financial year, and merely says that the company is confident of its significant potential. The interims looked pretty dire, with turnover flat, a profit being turned into a loss, and the period reported as 'challenging' - perhaps GatedTalent will transform DSG into something a lot more promising... and perhaps it won't. It looks like a lot of hope is in the price to me, and the announcement text rather too glowing...

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mw8156 Thu 12:58pm 16 of 31

have to remember that Dillistone is a very small co, market cap only around 10m, so a small success with GatedTalent could work wonders so still possibly a speculative buy?

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johnsmith68 Thu 1:03pm 17 of 31

Hi Paul. Can I 2nd Oxford Metrics (LON:OMG) which released an upbeat set of results yesterday to a muted market response. Thanks.

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Edinburgh Investor Thu 1:22pm 18 of 31

Regarding People's Operator (LON:TPOP) I remeber Paul giving at least a couple of stern warnings on this company. One of the many reasons I value SCVR:

'it sounds as if this one is not far away from AIM's knacker's yard' and;
'I'd be very surprised if either of these companies still exists in 12 months' time'

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andyfwwrench Thu 1:37pm 19 of 31

In reply to MrContrarian, post #3

Everyone who subscribed to the TPOP IPO was negligent, and probably set the ground for a ream of subsequent joke IPOs when it became apparent the market was adequately populated by fools. It traded above the IPO price for about 15 trading days of its existence, and some of those were in the funny period between xmas and new year.

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Patdownie Thu 1:56pm 20 of 31

Any chance you can have a look at Versarien?

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matylda Thu 1:59pm 21 of 31

Think Paul's watching the box set :)

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cholertonandrew Thu 4:08pm 22 of 31

Has it finished yet?

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runthejoules Thu 4:16pm 23 of 31

In reply to matylda, post #21

I think he's watching the box set and the American version, Trump and Arnie both ;-)

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InvestedGeordie Thu 8:23pm 24 of 31


The crowd call your name in the coliseum. You have built this reputation. Don't let the crowd down, they demand to be entertained.


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JK Dublin Thu 8:53pm 25 of 31

In reply to mammyoko, post #10

Oxford Metrics , I would second that request, thanks paul

OOPS and Versarian  would be Great Thanks

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lavinit Thu 9:11pm 26 of 31

As some people asked about RM (LON:RM.) and not covered by Paul, here's a lesser view :)

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Gromley Thu 9:49pm 27 of 31

In reply to lavinit, post #26

Well done lavinit - if for nothing else than curing my misconception of what this was about - I saw the ticker RM and a mention somewhere in the thread about pension deficits and convinced myself we "Royal Mail".

From your link at least I see that we are actually talking about a company with the helpful name of "RM" - I'm guessing this is the company formerly known as "Research Machines Limited". Ah nostalagia time if that is true - my first interaction with that company was about 35 years ago.

I ought to have a look at that tomorrow then "for old times sake".

(I mean no offence btw ignoring what you actually wrote, but the nostalgia angle just totally grabbed me - mañana for any proper thoughts I have.)

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lavinit Thu 10:01pm 28 of 31

In reply to Gromley, post #27

De nada

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fasyelectronic Fri 8:48am 29 of 31

Boohoo please if you have time

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lemonjar Fri 9:17am 30 of 31

I'm also one for £OMG

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MSR Bruce Fri 2:59pm 31 of 31

I think The Apprentice is a travesty of how Business should operate-not a fan!

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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 on most weekday mornings, constantly researching daily results & trading updates for small caps. Cheese! more »


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