Good morning, it's Paul here.

Estimated time of completion today: 3pm.

Update at 14:49 - today's report is now finished.


It looks as if compromise is in the air.

FWIW, my view is that a last-minute compromise deal, or fudge of some kind, is probably the most likely outcome. That's normal for the EU whenever there's an apparently intractable problem.

As we saw on Friday last week, the merest sniff of a deal, triggered some spectacular large & mid cap rallies. Therefore, if some kind of vaguely acceptable deal is done, as now seems likely, then I imagine we could see a big recovery in bombed-out shares. That's why I've remained fully invested during this tough period - because there could be some significant re-ratings, if the market starts to see the glass half full again. Maybe.

For this reason, I'm drawing up a list of bombed out, but fundamentally sound, companies, with my finger poised over the buy button.

EDIT: please also see the comments section below, where we discuss small caps market despondency, and Woodford, amongst other topics.

Loungers (LON:LGRS)

Share price: 199p (price unchanged today, at 11:28)
No. shares: 92.5m
Market cap: £184.1m

Trading update

Loungers, the operator of 157 café / bar / restaurants across England and Wales which trade under the Lounge and Cosy Club brands, announces a trading update for the 24 weeks ended 6 October 2019.

This company listed at end Apr 2019.

My sector expert tells me that it's a very good operator. That may be the case, but I find the valuation too high. All too often, companies list on the stock market when the figures are looking great, only to plunge in value once the shine comes off trading.

The other problem is that when brokers float companies like this, they tend to place the stock in lumps with institutions. Resulting in almost no liquidity in the market, post float. A basic error that keeps happening. Why? Because advisers just want to bank the lucrative fees, for as little work as possible. Whereas they should try to distribute plenty of shares to smaller & medium investors (as well as institutional blocks), in order to ensure proper post-float liquidity. This issue really gets up my goat.

LFL sales - in H1 are still excellent at…

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