Hi, it's Paul here with the SCVR for Tuesday.

Today's report is now finished.

To get you started today, I wrote 4 more sections to yesterday's report in the afternoon, covering:

Tt Electronics (LON:TTG)
Solid State (LON:SOLI)
Actual Experience (LON:ACT)
Speedy Hire (LON:SDY)

It's good to see the first 2 companies in that list trading relatively well, despite covid.

Cerillion (LON:CER)

Directors sold a hefty lump of shares yesterday;

  • 2.74m existing shares, or 9.3% of the company sold to institutions
  • 255p per share, a deep discount to the 319p share price
  • Guy O'Connor is selling his entire holding, of 2.39m shares (retirement-related)
  • Oliver Gilchrist is selling half his holding, and retains 1.2% of the company

Graham introduced me to this share, and we both think the company is very good. This disposal of shares by Directors is mainly retirement-related, which seems a reasonable explanation.

EDIT: Just to clarify, Graham's just messaged to say that he doesn't have a strong view on CER, and that "it doesn't particularly stand out to me at all". So my apologies for putting words into his mouth which were inaccurate as it turns out, hence the strikethrough above. End of edit.

I'm a bit concerned at the placing price, being only 255p, which suggests that the market price of 319p could be a bit toppy perhaps? Although when buying an illiquid stock, I understand why instis want a discount, as they're locked in for the duration.


Sosandar (LON:SOS)

Share price: 8.75p
No. shares: 192.3m
Market cap: £16.8m

(I hold a long position, at the time of writing)

Trading & COVID-19 Update

This online ladieswear brand provides an update for FT 03/2020, and on current trading.

Current trading (April & May) - this section reads well. Key points;

  • Revenue up 62% vs LY - although bear in mind this is up against soft comparatives LY. It demonstrates that the heavy marketing spend late last year has continued to benefit sales this year, which is what the company indicated it believed would be the case.
  • Growth achieved despite marketing spend down 69% on LY
  • Returns down to c.33% - that's a huge reduction from c.50% in the past. Explained by selling more stretchy fabrics (e.g. focus on denim), and other styles which are…

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