Good morning, it's Paul here with the SCVR for Tuesday. Hopefully you had an enjoyable long weekend.

Timing - should be done by 1pm today. Today's report is now finished.

Agenda -

It's very quiet for news today, so I'll cover a few stragglers left over from last week, in addition to today's relevant news.

Redcentric (LON:RCN) - in line with expectations trading update for FY 03/2021. Upbeat tone to commentary. PER of about 19 - difficult to see much upside from here.

Mothercare (LON:MTC) (I hold) - several readers have asked me to review this share. Looks potentially interesting, but beware the huge agreed amounts to be paid into the pension scheme. Not enough info for me to form a sensible opinion here.

Wincanton (LON:WIN) - Positive trading update from last week. Lovely company, but big pension scheme cash outflows.


Redcentric (LON:RCN)

132p (pre market open) - mkt cap £206m

Trading Statement

Redcentric plc (AIM: RCN), a leading UK IT managed services provider, today announces a trading update for the year ended 31 March 2021 and the sale of a non-core business unit.

This update is worded in very upbeat-sounding language, but it’s only in line with expectations, so logically shouldn’t have much, if any, effect on the share price. Mind you, logic went out of the window a while back, this is a roaring bull market now, so anything could happen.

Revenue and adjusted EBITDA for the financial year ended 31 March 2021 are expected to be in line with the board's expectations...

As an aside, I do want to stress that we’re not trying to predict short-term share prices in these reports. That’s down to unpredictable market sentiment. In markets this bullish, there are often a lot of new entrants (e.g. spread betting companies are reporting large numbers of new account openings). Inexperienced punters tend to chase stories, fad stocks (e.g. anything bitcoin-related, or cannabis, etc), and often have no idea how to value companies, just following prices up, buying on tips, unaware that they’re often participating in a bubble. A lot of money can be made from that type of speculation in a bull market, so good luck to them. The trouble is, people learn a lot of bad habits, which result in them losing the money afterwards,…

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