Small Cap Value Report (Tue 22 Feb 2022) - BKS, SLP, SPR, SYS1, BLTG, ANG

22nd Feb '22 by Paul Scott

111 comments 12516 reads

Good morning, it's Paul & Jack here with you for Tuesday's SCVR.

Agenda -

Paul’s Section:

Ukraine - the situation in Ukraine is very much dominating the headlines at the moment. A recent article from John Authers provided a table showing that this type of crisis usually creates a short term spike down in markets, which tends to be quite quickly recovered. Personally I can’t see any reason for a protracted bear market over this current crisis, because the West has already indicated we’re not prepared to fight over the Ukraine, and Russia doesn’t care about sanctions (which incidentally don’t work, but primarily fulfill the need to be seen to be doing something).

However much disgust & anger there is towards Putin, the bottom line is that very little is likely to actually happen in response to his actions. Therefore the stock market could quickly forget about problems in the Ukraine - just like it did when Russia annexed Crimea a few years ago. Anyway, we’ll see. Inflation & interest rates seem bigger issues for the market, in my opinion, right now.

(EDIT: please note I am only discussing the impact on stock markets here, not starting a wider debate about Russia/Putin/Ukraine)

Beeks Financial Cloud (LON:BKS) (I hold) - announces its third large contract win this month. Increased revenues are being recycled into higher costs, to drive more growth. Looks a very exciting growth share to me, and a top pick for 2022 and beyond, in my view. Tricky to value at this stage, but organic growth this strong is extremely rare. Bearish market conditions mean the very positive newsflow has been ignored - this looks a clear buying opportunity to me.

System1 (LON:SYS1) - a profit warning coming quite soon after an in line update on 9 Feb 2022 (accompanied by a curious downgrade in broker forecast). The cash pile is almost a third of the market cap. Possibly interesting as a punt?

Angling Direct (LON:ANG) - a year end (FY 1/2022) trading update, which reassures on several fronts - in line with expectations, and with a reassuringly large cash pile. The main drawback is broker forecast for earnings to drop in FY 1/2023, so I think it would need ahead of expectations updates to drive share price growth. Maybe there could be better bargains elsewhere, given bearish market conditions…

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bullhead

22nd Feb '22

Your entitled to your opinion my friend maybe all those historians are wrong and you are right one of my grandfathers and a great uncle where both on the artic convoys so I know a lot about them and the war in general

When the Germans couldn’t take Moscow before the first winter the writing was on the wall and when they got bogged down in the slaughter that was Stalingrad they where done it was just how long it took

The US support did help but it just made the war shorter with out it the Russians would have still won would have just cost more lives and the Germans would have run out of soldiers first

Think we have both made our points and there is no way to prove who is right or wrong

But there is no doubting the Russian fighting spirit read up on Leningrad and Stalingrad and then tell me they would have run away when facing UK US troops

Your obviously a clever fella but don’t think you are looking at the whole picture

Is there a personal reason you won’t to believe the Russians where given to much credit in Second World War

At the end of the day to take territory and hold it you need boots on the ground and to sacrifice lives to hold it 8 out of 10 German soldiers killed in WW2 died on the eastern front

Well done my friend

Most Russian soldiers aren’t conscript

https://www.csis.org/blogs/pos...

Gives a balanced but critical view

Everyone including you who posts wants to be heard or they wouldn’t post

One persons on topic is someone else’s off topic not sure any topic should be considered out of bounds simply because you don’t like it

Like a few of you said above maybe people should be able to mute who ever they don’t agree with so they can live in a little echo chamber

Each to their own personally always interested in differing opinions

Doug2b

See tomorrows SCVR comments

23rd Feb '22

But even at £500bn, Tesla would have to have a larger market share than Toyota and at good margins, to justify their valuation, i.e Tesla would have to be both very profitable and the largest car maker, a tall order now I think, especially given how the competition does seem to have caught up.

James Kerr1

If it is an echo chamber without you, that suits fine.

Hahaha oh dear oh dear you are funny my friend

For anyone interested in investing or for that matter already holding Sylvania Platinum (LON:SLP) I would watch their presentation on

https://www.investormeetcompan...

It’s free to register and watch gives a really good view on where the company see they are going regarding production etc

Caper4

suggest you read Bill Blain’s article today which I posted on todays, SCVR. The Russians are very patient and realise that sanctions are ineffective and the west so vulnerable and impotent . The big worry is China trying to take Taiwan !!

and me. Most Forum’s I am a member of have this so it’s technically easy to do. Doug2b would be my first one :)

Would agree with all that China trying and probably succeeding to take Taiwan would be the end of western dominance

Interesting post from Mr Blain

codefluence

"Legit" algorithmic trading also requires low latency, for instance anything related to arbitrage, like pairs trading.

Logical David

There is an interesting 3 part series on BBC 2 on a Monday evening around 9pm. The programme is called 'The Rise of the Nazis'. This Monday just gone was about the Nazis failure to take Stalingard and the large loss of life which ensured. I'm sure the programme will be on the BBCiPlayer. Some very interesting facts and video footage.

Upyrgunga

Re Sylvania Platinum (LON:SLP), In retaliation for sanctions, Russia could restrict the supply of metals such as palladium - could have an interesting effect on the metal price. Meanwhile, Rhodium price is steadily ticking up - now USD 18,650 compared with 14,000 on 31 December. The price should be squeezed higher if the semiconductor shortage eases.

Price charts - PMM (matthey.com)

• Palladium mine production worldwide by country 2020 | Statista

mojomogoz

It's an error to apply the lessons of WW2 or Cold War to current situation imo. Bill Blain's piece is interesting as second level thinking around Turkey as a bell weather. The greatest strategic mistake by EU is not embracing Turkey...and the unfolding error is not to pursue deeper economic ties with Africa.

But back to Russia. It neither has the manpower, willpower or productive power to sustain a war of subjugation and dominance over Ukraine never mind eastern Europe. At the end of WW2 the situation was dire and the soviets provided a form of safety. The situation today is very different. Russia would need to wage a war of annihilation to overcome Poland or even Ukraine. This is possible but remains highly improbable.

IMO Putin misstepped. He expected more leeway from Germany/Europe. Germany halting NS2 deployment is a surprise as is NATO cohesion. He now needs to go for the rest of Ukraine immediately or he will have a state willing to fight much more tooled up to oppose him. Poland, Lithuania and Ukraine could form a defence pact with a bit more time...wow that creates a dilemma for Europe and NATO. On balance, this is an EU problem now and not NATO...and this is part of Putins miscalculation as Germany will do everything to keep EU together.

Undoubtedly, if he rolls his army he can overwhelm Baltics easily and batter Poland down with time. But this has nearly always been the case since end of WW2 (and why we ended up letting them take so much of Europe).

But Blain is correct that a retaking of control by Trump Republicans in mid terms could set the stage for an environment whereby US withdraws and leaves it as a European problem...and the Russians do incrementally roll over territory. The best thing Europe inc UK could do is rearm rapidly...but we are unlikely to have the gumption for it. The Poles and Ukrainians will.

24th Feb '22

Sylvania Platinum (LON:SLP) share price firm while Rhodium price now 19,200

25th Feb '22

Rhodium price at 20,000 now thanks for the link below to countries that supply the most palladium a lot of people forget that Russia is the country that supplies more than any other country

When it comes to rhodium it’s basically down to SA

Small Cap Value Report (Tue 22 Feb 2022) - BKS, SLP, SPR, SYS1, BLTG, ANG

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Paul Scott

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