Good morning from Paul & Graham. We're off to a flying start today, with some comments left over from yesterday's news.  Today's report is now finished. I'm halfway through DLAR, so will finish that in tomorrow's report.


Paul's Section:

Knights group (LON:KGH) [quick comment] - an honourable mention for TheFloatingInvestor who flagged up here in yesterday’s reader comments that the CEO of KGH just spent £1m buying shares at 83.9p. (Although context is that he banked £61m in Jan 2021 selling at 390p!). He’s already got 20.7% before this transaction, so seems well-aligned. Yesterday’s TU looks pretty good to me - H1 in line, and outlook sounds upbeat. I won’t have time to dig deeper, but want to flag this as something readers might want to assess more carefully. The forecast PER looks super-low, and the CEO splashing the cash in a meaningful way, makes me think this could be a buying opportunity perhaps? DYOR as usual though please. [no section below]

Intercede (LON:IGP) [quick comment] - Interim numbers look good to me. Note there’s a big benefit from the negative tax charge (R&D credits possibly?), so it made £1.2m PAT for H1- good profit growth. IGP should have benefited from the strong dollar, as its customers are mainly in the USA. £10m net cash is more than healthy. £32m mkt cap doesn’t strike me as excessive. H2 outlook is in line with expectations. I’d like to see faster organic growth, which is the main reason my interest has waned a little recently. It’s fundamentally a very sound company in my view. The jury’s out on whether it can accelerate growth into something more exciting. [no section below]

CML Microsystems (LON:CML) - more detail below. Good interim numbers, and a substantial increase in broker forecasts. Management tantalise us with vague outlook comments, but conclude that they see a "very positive outcome" for FY 3/2023. There's also the matter of a net cash pile about a third of the market cap, and surplus freehold property. All in all, this looks very interesting now I think, hence will include it as a mystery share (i.e. one of the best shares of the week) in this week's podcast.

Fonix Mobile (LON:FNX) [quick comment] - a rare thing this one - a fairly recent float (Oct 2020) that hasn’t collapsed in price! Yesterday’s AGM…

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