Good morning! It's Paul & Jack here with the SCVR for Tuesday.

Agenda -

Jack's section:

Calnex Solutions (LON:CLX) (I hold) - highly rated provider of network testing products and services. The valuation is expensive but Calnex has several promising growth drivers and a track record of successful product development. The valuation currently assumes the company executes on these opportunities, with a degree of future growth priced in. Notes from call with management now added.

Severfield (LON:SFR) - structural steel designer. A tough industry, but Severfield does have a leading position in the UK and is one of the biggest in Europe. Current trading looks good, although with some signs of customers delaying projects. It's not the type of company to trade on a premium rating but the current valuation is quite modest with a single-digit PER and forecast dividend of 4.5%.

Explanatory notes -

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Jack’s section

Calnex Solutions (LON:CLX)

Share price: 135p (+2.27%)

Shares in issue: 87,500,000

Market cap: £118.1m

(I hold)

Calnex is one of the more promising floats from the class of 2020. It’s a provider of test and measurement solutions for the global telecommunications sector, which has built up a strong market position, a global distribution capability, and whose business is exposed to several growth trends.

The long term growth drivers for test instrumentation and solutions include the ongoing growth of data creation, a vast…

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