Small Cap Value Report (Tue 7 July 2020) - SOS, HFD, PHTM, RCH, FCAP, PCIP, ALT

6th Jul '20 by Paul Scott

117 comments 11188 reads

Good evening/morning, it's Paul here with Tuesday's SCVR.

Estimated timings: I'm aiming for 2pm finish. Edit at 13:37 - make that 3pm, some companies are taking longer to work through than I anticipated.
Update at 15:10 - today's report is now finished.

Reminder for Mello Virtual

This is coming up, this Fri & Sat, 10-11 July. It will be just like a normal Mello investor event, but online.

I've been roped in to comment about small caps in a panel discussion, so am looking forward to that.

David has kindly provided Stockopedia subscribers with a 50% discount code: SCVR50

Sorry if you've already paid full price (which I have too), but it's so cheap anyway, it's not worth getting into a lather about it either way.

There are some stand-out speakers, including quite a coup getting Sir Martin Sorrell as a keynote speaker! His very forthright views should be illuminating.

Pub re-openings, part 2

Expert industry sources (mostly Mark Brumby of Langton Capital) told me that the pub/restaurant re-opening is being phased, and that some operators had decided to defer Super Saturday to Manic Monday instead. Therefore, out of duty to my readership, I felt compelled to research what was happening in Bournemouth once again this Monday evening.

Pleasingly, Bigdish (LON:DISH) dining app (in which I have a >3% holding) seems to have done a soft relaunch, as I successfully booked a table for 1 (under the name of Billy Nomates!) at Nativ - a small, and basic African themed independent takeitaway/diner. To say that staff were welcoming is an understatement! They welcomed me like a long-lost friend, which was wonderful. Mind you, I have been re-reading the Dale Carnegie classic, "How To Make Friends & Influence People", which reminded me to smile and be generally affable. The results of doing that are genuinely remarkable - people respond so well to warmth. This is probably my new favourite book, having slightly eclipsed Superforecasting, which I've read twice now.

As my old PE teacher, Tim Hall, at Poole Grammar, used to say in a broad Dorzet accent, "Yer get out, what yer puts in!". He applied that to sports. He was right. I put in nothing into sports, and got nothing out. Chasing balls around a field has always struck me as mindless, and always will. But his general philosophy of…

Unlock with Email

Unlock with Google

Already have an account?
Login here

Howard Adams

7th Jul '20

Ref Boohoo (LON:BOO)

A head line from Retail Week Twitter post

'Asos, Next and Zalando cull Boohoo brands amid slavery allegations'

https://twitter.com/RetailWeek...

REgards

Howard

MiserableJacktPotato

It literally states it in the Jupiter holdings RNS

From the RNS "As of 1 July 2020, Merian Global Investors Limited is owned by Jupiter Fund Management Plc. Any positions in Merian Global Investors Limited are transferred to Jupiter Fund Management Plc."

peterthegreat

I have a question to ask Paul or anyone else who has visited pubs over the past few days. What options were provided when it came to paying? Was it the usual credit card options or was there an option to use PayPal or perhaps even mobile billing of the type developed by Boku Inc? There has been an acceleration in the shift to non-cash forms of payment as a result of the pandemic and I wondered if this was also occurring in pubs which I have tended to regard as one of the last bastions of cash payments?

extrader

Hi peterthgreat,

Re card usage or not, it strikes me as odd that people are reportedly getting agitated when asked to provide name and contact number at pub door, but have been happy for yonks to pay by credit card and/or make a gastropub table reservation that includes giving name and contact details......

ATB

donaldbird

Boohoo (LON:BOO)

"No enforcement has been used during the visits and officers have not at this stage identified any offences under the Modern Slavery Act 2015."

https://www.gla.gov.uk/whats-new/latest-press-releases/07072020-multi-agency-visits-to-leicester-factories/

Albm7

Photo-me International (LON:PHTM) - Paul thanks for your comments, I appreciate you looking at it and all the other names of course. PS looking forward to reading more of your comments on how the unlock is unfolding in Bournemouth.

Momoko Miyamoto

I'm bullish on Halfords (LON:HFD) , the shares have been hated for years but now seem to have several factors in favour.

1. Government incentives and investment in cycling, e.g. vouchers and cycle lanes.

2. People and kids using bikes to exercise and commute, given the risks of public transport, gyms and team sports.

3. Staycation trend, money being spent on bikes, roof boxes, bike racks etc rather than foreign holidays

4. Large stores that easily allow social distancing.

5. Anticipated legalisation of E-scooters

6. People moving to rural areas or suburbs need more cars, accessories, parts & servicing.

7. Recession would mean cars kept for longer requiring parts & servicing. Older cars more likely to use non main dealer servicing.

8. Business rates relief, anticipated jobs retention and consumer incentives.

9. Exercise at home trend boosting sales of turbo trainers

10. After selling cycle republic Halfords (LON:HFD) now focuses on the low and mid price brackets for bikes which should hold up better in recession.

Nice find. Thanks for sharing

Paul Scott

Hi peterthegreat,

Re paying in pubs, it's either contactless, or paying through the ordering app, by scanning in your card details using your smartphone's camera (and only if the payment card is quite new, and the silver numbers haven't yet rubbed off). Google pay is another card payment option, and several others were listed on the apps.

So it looks to me as if cash is now a thing of the past in pubs.

Regards, Paul.

Thanks Simoan, I'll check out your book recommendation!

I wrote about it in yesterday's report! Maybe check before posting stupid comments.

For me, I was tempted to buy around 260p today, but didn't have any available funds, and didn't want to sell anything other holdings. I'm watching it closely though, and might start buying if it continues falling.

monsnaggl

8th Jul '20

His follow up book is even better:

Pre-Suasion

LongGame87

Amur Minerals (AMC) - Nickel Mining Exploration Company with the licence to mine one of the world's largest Nickel deposits in the world (1.5 Million Tonne of Nickel @ approx 13,000 USD per Tonne)

Micro Cap Pick and in my view a got very good potential for great returns with the SP sitting at a very low level.

There is a huge post Covid 19 move to EV Vechicles

This has cased a huge increase in demand for Nickel.....

See below article

Amur Minerals - (LON:AMC) - The Start of the Final Rise! (Nickel Mining)

https://www.stockopedia.com/content/amur-minerals-lon-amc-the-start-of-the-final-rise-nickel-mining-zak-mir-update-631283?order=createdAt&sort=desc&mode=threaded

There are a few more before this latest one if interested....

Again DYOR

mojomogoz

Rarely can I agree with simoan ;) ....but I agree that Cialdini books are excellent

I read a year or two ago when Leicester garment factories were in the news that policing it is extremely hard as they are located in large semi derelict buildings...somewhat a warren of them and a warren inside (I haven't been to Leicester since I was a kid so really can't remember). I think this was FT story but not sure. It was also suggested that officials didn't want to find the problem due to complex political and race related issues.

Thanks for your reply Paul. It sounds as though the pub trade is contributing to the acceleration in cashless forms of payment. I find it amazing that, until recently, 85% of global consumer transactions were still made by cash. Even within Germany most retail transactions were in cash until recently but have accelerated dramatically as a result of COVID-19. I have held VISA shares for quite a few years but have recently added PayPal and Boku as I think the trend toward cashless payments on a global scale is unstoppable.

2ShedSam

9th Jul '20

Re: Pci- Pal (LON:PCIP)

Just listened in to their InvestorMeetCompany presentation of back of Paul's update. Liked what I heard. Seen to have a product that customers want/need. Lots of big reputable companies, SaaS business model with good earnings visibility. Good international growth. Seem to be executing well. No hyperbole in presentation. As an investment, it could have legs.

Zoiberg

1st Aug '20

Sosandar (LON:SOS) are so addicted to comparative figures that it is impossible to work out all of the actual figures! It gets really wearing after a while. The June break even figure is one that I'm taking with a pinch of salt. Does it include returns or are returns still suspended?

Small Cap Value Report (Tue 7 July 2020) - SOS, HFD, PHTM, RCH, FCAP, PCIP, ALT

Reminder for Mello Virtual

Pub re-openings, part 2

Unlock the rest of this article with a 14 day trial

About the Author

Paul Scott

117 comments

Unlock the metrics for all these stocks and more...

Unlock the metrics for all these stocks and more...