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

Mello online investment show - today, free tickets here, starts at 11am until about 15:00. Feel free to dip in & out. All the companies presenting look interesting to me. I've got to think of something clever to say in my slot at 14:50!

Timing - TBC

Agenda -


Staffline (LON:STAF) - quick comment re 2nd largest shareholder buying more shares yesterday. Augurs well for refinancing perhaps?

Focusrite (LON:TUNE) - sparkling interim results. How much is caused by lockdown? Not sure, but I think the higher share price here does stack up on fundamentals. This share gets a thumbs up from me.

Gaming Realms (LON:GMR) - quick review of its 2020 results & 2021 outlook. I continue to believe there could be good potential here, but unfortunately I can't fathom how to value the shares.


Water Intelligence (LON:WATR) - great growth figures from this water leak detection specialist with corporate and franchise operations, but trading at a premium valuation.

Inspiration Healthcare (LON:IHC) - in line update from this ventilator provider that has seen a Covid-related boost in demand

Paul’s Section

Staffline (LON:STAF)

73p - mkt cap £51m

Holding in company - we looked at Staffline yesterday, so as a postscript, I see there’s an RNS today, saying that major shareholder Henry Spain Investment Services (a stockbroker based in Market Harborough) increased its stake in Staffline from 19.4% to 21.4% yesterday (on publication of a trading update).

Given that Staffline urgently needs an equity fundraising to repair its weak balance sheet, then I think it’s encouraging to see the 2nd largest shareholder buying more shares in the market. That suggests to me that the shareholder is probably going to be supporting in a fundraising.

HRnet owns 29.95% of Staffline, so these 2 shareholders put together have over 50%. Therefore if both are supportive, then a fundraising should be no trouble to get away, although they’ll also be heavily influencing the price. The danger is if they decide to heavily dilute small shareholders. Although I find that’s rare, since often big shareholders want to preserve the value of their own stake, as much as anyone else.

It will be interesting to see how this pans out, and…

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