Good morning from Paul & Graham! We're having a catch up day today, so Graham's done shorter comments, and I'm carrying on probably to mid-afternoon, so watch this space! Also we're seeing some interesting reader comments, so do check that section below too, and thanks to everyone contributing. Today's report is now finished.

Agenda - 

Paul's Section:

Churchill China (LON:CHH) - I have a good rummage through yesterday's interim results to 6/2022. The figures are good, and a decent outlook, with record order book. However, its end customers are under severe strain right now, so I am worried that order books could be heading for a fall. For that reason, it's difficult to justify the current valuation.

Joules (LON:JOUL) [no section  below] - is going from bad to worse, with news yesterday that negotiations with Next (LON:NXT) for an equity stake to rescue it, have fallen through. It confirms the obvious, that it now needs to do an equity fundraising. I’m speechless at how badly handled this has all been.

The c.£12m market cap might be tempting for a punt, but we don’t know what the terms of the now inevitable refinancing will be. The bank has been very helpful so far, but the clock is ticking due to its Nov 2022 deadline. Dilution could be huge, given that the market cap is now so low, and the bank might require a substantial equity raise, and who would want to rescue it now? For that reason, I wouldn’t want to gamble on the outcome, and I’ll wait for a proper refinancing to be done, and a hopefully credible turnaround plan. The twin risks are of heavy dilution (which now looks almost inevitable), or an even bigger risk that it might end up being put into administration, and a pre-pack being done, wiping out existing shareholders altogether. Those grubby deals get done in private, often with no warning. Sorry again that this one has been such a disaster, it’s just been so badly run, by incompetent management. [no section below].

Best Of The Best (LON:BOTB) - an in line trading update today. Also I comment on the latest large management share selling, to strategic investor Tedi Sagi. This can be viewed two ways - disappointment at yet another big Director selling at just 400p, or excitement at a new investor bringing expertise…

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