Small Cap Value Report (Tue 9 Feb 2021) - FCCN, JOUL, TND, D4T4, BRCK

9th Feb '21 by Paul Scott

89 comments 12455 reads

Good morning, it’s Paul here with the SCVR for Tuesday.

Hooray, down votes have been abolished! That gets rid of the negative energy, and bickering hopefully (I'm an optimist!)

Timing - TBC

Agenda -

French Connection (LON:FCCN) - (I hold) - mystery buyer of 25% is disclosed

Joules (LON:JOUL) - (I hold) - Acquisition of Garden Trading

Tandem (LON:TND) - Positive trading update for FY 12/2020

D4t4 Solutions (LON:D4T4) - CFO leaving, and a mini trading update

Brickability (LON:BRCK) - Trading update - raises guidance for FY 03/2021

French Connection (LON:FCCN)

(I hold)

25p - mkt cap £24m

New 25% shareholder disclosed

The Takeover Panel says on its website that French Connection (LON:FCCN) entered an offer period at 07:00 on 5-Feb-2021, although I'm not sure if holders of 1% or above are meant to disclose that yet. I haven't seen any disclosures as yet. My total position (including a spread bet) is slightly over 1%, so I need to keep an eye on that.

There was a TR-1 standard disclosure at 16:10 yesterday, that the 25% stake sold by Mike Ashley's Frasers (LON:FRAS) has ended up being bought (25.33% of FCCN) by Apinder Singh Ghura of Newcastle.

I've googled this name, and the only things that come up are Directorships, so I went to Companies House and found this person listed as an active Director of 10 companies based in Newcastle and Manchester. I've been through the latest accounts for all of these companies, and list them below in order of largest balance sheet NAV:

Chan Property Group Ltd - £5.2m NAV
Chan Commercial Ltd - NAV £2.8m
Willow View Care Ltd - £985k
Newport Lane Estates Ltd - NAV £74k
Northumberland County Developments Ltd - NAV £100

There are 5 more companies which have been incorporated in 2019 or 2020, hence have not yet filed accounts, namely;

FCMUK Ltd - incorporated Sept 2020 - and clearly bearing a striking resemblance to French Connection's logo "FCUK", so maybe this was set up as a vehicle to get involved with FCCN in some way?
MIP Holdings Ltd - incorporated Oct 2020 - wholesale & retail of clothing
Phantom International Ltd - incorporated Feb 2020
Apparel Sourcing Group - incorporated Sept 2019
Wraith Holdings International…

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Racer78

9th Feb '21

Pls reinstate up and down votes. It adds to the colour and pizzaz of social media, abolishing it makes comments section blander

Gromley

Well as I am no longer allowed to vote with my thumb, I have to just say that I disagree with you on this point, rmillaree . I have been known to upvote a post that I thought was harshly downvoted too. But on balance I thought the downvote was useful as an alternative to people posting twitter like "wrong" posts (perhaps like this one!)

Whilst it is only a very minor thing, I thought it was a semi useful counter to the echo chamber effect that I see developing, to a very small extent at this stage I should say.

I'm careful with the housekeeping!

LOL - Lockdown has been a blessing for the 'housekeeping' hasn't it!

Anyway Paul, on the subject of your beans - I know you have had to RNS previously but I was impressed on how investegate presented this one.

I don't know who this "W.H. Ireland" chappy is, but at least you got top billing (on my monitor at least).

I have to be honest, that I thought you'd been chasing the wrong hare with French Connection (LON:FCCN) , but there is some degree of vindication perhaps in the current situation.

Nice !

I Like that you have quantified your holding %, you talk sense on this board.

Phuntt

couldn’t agree more Gromley. I will miss the laugh it gave me when people were downvoted and either:

A) found it annoying enough to comment angrily

B) found it annoying enough to say how little downvotes mattered to them

I don’t think I’ve ever downvoted anyone (maybe once or twice in a year for blatant stirring the pot) and don’t think I would in the future but I will miss the “little Britain” atmosphere it brought. Boo to sanitising the SCVR...

Harry Hindsight

I start a comment, sometimes with beer involved, and then delete it as on second review does not meet the 'relevance' 'is anyone interested' 'will we make MONEY' - and mostly the answer is NO.

Thing twice - click once.

Replying to my own post (lockdown syndrome). £OKCD Ocado annual results 'resulted' in a dip. A 13 point risk analysis maybe scared a few off. This is a good long term format or not. Clear others will catch up and be cheaper. Fulfilment is not as easy as having customers wheel a trolley out of the door, as the SCVR online/bricks debate. Not sure Sunak can do the online tax to food but level playing fields and all that. Stocko rating at SR 52 so in the 'review' zone for sure.

syrio

If I may disagree politely, I don't like comments like yours complaining about downvotes, they add nothing to the discussion.

I agree syrio, so I could have just given you a thumbs up but that would equally not added to discussion.

Cleeve

10th Feb '21

One of my big holdings been in for a while - check out sentience and mesh holdings all v interesting AI plays

ASLR has links to DEV which is an ED tech play I have held both for a while I can see lots of growth but significant risk

falsegods

It was very amusing indeed! I think I better get one of Vince Cable delivered asap

ezlifeme

Hi falsegods re background cut outs @ Mello Mondays

Surely you would have Chris (Next slide please) Witty

Howard Adams

Hi Cleeve

Thanks for the added insights. I have followed up a little on your points.

Can't quite work out why Entain (LON:ENT) through Intertrader Ltd seems to be part of the major shareholdings as well as a few recognisable entrepreneurial names (e.g. Nigel Ray, Christopher Akers to list two).

From my brief looksee there seem to be connections between All Active Asset Capital (LON:AAA) Asimilar (LON:ASLR) Dev Clever Holdings (LON:DEV) $ED Entain (LON:ENT) and latterly the BGL Group Ltd. I'm sure several others if I were to dig more deeply.

And, I just cannot work out why All Active Asset Capital (LON:AAA) keeps rising so much so rapidly.

I'll continue to watch as I'm quite intrigued but too cautious to act at all.

Regards

Howard

I think the Myanmar property is a legacy issues an not anything that anyone is interested in

John18v

16th Feb '21

https://www.joules.com/gift-gu...

Just looked at their website as a consumer. I thought it was very poor, pictures too small and indistinct , navigation not clear and very few products. I could not find any information about where they are manufactured or materials used. I found this unsatisfactory as a consumer and put it in my forget as quickly as possible category!

Rusty2

They seem to be made in China. Not surprised they don’t shout about it. What I found shocking was the prices, £60 for a casual shirt. Profit margins must be good.

Gobbagvooar

26th Feb '21

JOUL: as of today 25th February, the Stock Report is giving JOUL qualifies for Altman Z-Score Screen ("Short Selling)" as being 1.8 or under yet from another source its Altman Z-score for 2021 is 2.7. Don';t understand; data error?

Joules (LON:JOUL) it says 1.79 today on the Stockreport. It is the 26th February today.

Where is it 2.8?

RebelChatRoom

20th Apr '21

4.7% of the co shares placed today by Tom Joules in a book build and done in 2 hours at the market price, not a sniff of a discount. Demand or what?

Small Cap Value Report (Tue 9 Feb 2021) - FCCN, JOUL, TND, D4T4, BRCK

French Connection (LON:FCCN)

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Paul Scott

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