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

Timing - TBC

Disclaimer -

A friendly reminder that we don’t recommend any stocks. We aim to cover notable trading updates & results of the day and offer our opinions on them as possible candidates for further research if they pique your interest. We tend to stick to companies that have news out on the day, and market caps up to about £700m. We avoid the smallest, blue sky type companies, and a few specialist sectors (e.g. resources, pharma/biotech).

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Agenda -

Paul's Section:

Smiths News (LON:SNWS) (I hold) - an unexpectedly positive trading update, from this distributor of newspapers & magazines. Obviously an activity in structural decline, but it's now a cash cow, with lucrative dividends in the pipeline. PER of just above 4 looks too low, now that legacy issues have been fixed. One for value investors.

Hotel Chocolat (LON:HOTC) - an impressive update, with performance ahead of expectations for FY 06/2021. Lots more detail about growth plans. A little light on numbers, but there's no doubt the company is trading well, and making impressive gains online & internationally. Still expensive, but I'm warming to this share.

Jack's Section:

Circassia (LON:CIR) - Ex-pharma co (now medical devices) in turnaround mode but with costs reduced and EBITDA to be ahead of expectations. Still loss-making and market cap is well ahead of continuing revenue, but the group has a dominant asthma testing product in the form of NIOX that it can now focus fully on.

Solid State (LON:SOLI) - shares down on today's update. You might argue that the price got a little ahead of itself in recent weeks but this strikes me as a well run company with potential for steady long term growth.


Paul’s Section

Smiths News (LON:SNWS)

(I hold)

42.5p (last night’s close) - mkt cap £105m

Trading Statement

Background

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