Good morning from Paul & Graham.

Agenda - 

Paul's Section:

Gear4music Holdings (LON:G4M) - a mild profit warning was reported on 9 Sept 2022, which I belatedly look at today. Profits from the pandemic boom have largely evaporated now, so maybe the market's brutality towards the share price is justified? It's looking good value to me now, if you can cope with the increased debt.

SThree (LON:STEM) - it's another positive update, ahead of expectations. This remains a firm favourite value share for me. The outlook sounds a little more cautious though, hardly surprising given macro conditions. Strong balance sheet, nice divis, and a low PER. Should be fine long-term, even if we see possibly tougher conditions in 2023.

Graham's Section:

Jarvis Securities (LON:JIM) (£42m) - a bombshell RNS on Friday afternoon resulted in JIM’s shares selling off by almost 50%. Something has prompted the FCA to intervene and to require JIM to hire regulatory consultants at its trading subsidiary. In addition, this subsidiary won’t be able to pay dividends to Jarvis or engage new clients without the FCA’s consent, and this will have some real (albeit hopefully limited) impacts on both the business and ultimately on Jarvis shareholders. Only insiders will know the nature of the investigations and whether or not Jarvis is guilty of any regulatory breaches. While I can’t rule out the possibility of very serious problems (and the market hates this sort of uncertainty), I would view the shares as underpriced on the basis of my opinion that most companies emerge from these reviews with their reputations intact and/or with fines which don’t break the bank and allow them to continue trading.

Appreciate (LON:APP) (£47m) (+2.7%) [no section below] - this Liverpool-based gift voucher provider publishes a trading update for its AGM. Trading is in line with expectations. With actions taken to emphasise profitability in the consumer business, and improve retention levels in the corporate business, it is set up “strongly” for the key Christmas period. The company thinks that seasonality might be even higher this year as both individuals and businesses adjust their budgets. I guess this reflects broad restraints on discretionary spending, apart from Christmas gifts. The company is currently looking for both a permanent CEO and a permanent CFO. The former CEO Ian O’Doherty oversaw some disappointing years for Appreciate, obviously not helped by…

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