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Stocks due a Referendum Bounce?
Many of my Small Caps have suffered price weakness in the past few weeks in the lead up to the Referendum. Assuming the polls are right and we vote to stay, which of the current weaker Small Cap stock do you have most confidence in to recover momentum over the next 2-3 weeks?
My vote goes to Ab Dynamics (LON:ABDP) where the growth, return numbers and newsflow have been excellent and the price is off -10% or so . Ian
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11 comments
Berkeley Energia (LON:BKY) has some news around the corner - they will be publishing a definitive feasibility study in the coming weeks, which will confirm the cost of production of their projects. A bit of a punt to be honest, but they are close to becoming the cheapest uranium provider in the world.
There will be a few small companies shoot up I believe. Some companies I have interviewed are delaying newsflow until after the vote as they want to avoid the melee. Metal Tiger (LON:MTR) might also be worth a look, though they've just come off a good run, so not sure they'll bounce after the vote. Nevertheless, a good longer term hold.
I think Hilton Food (LON:HFG) may be due to exiting Ftse small cap index rather than Brexit
agree with Ab Dynamics (LON:ABDP) bought into it yesterday, was hoping for further drop but didn't seem to be happening. got in at 418 in the end.
was also interested in Bioventix (LON:BVXP) to top up but spread was huge - 910 -1000 !
Yes spread is huge, however its often not that wide, I bought some at 962p the other day, I think an auto bid is the best way to buy but only small amounts.
Imran,
Coincidentally I hold International Greetings and 32 Red and I have more confidence in Int Greetings having just gone back and read again their April Trading update. This share looks too cheap to me in light positive global news, decent SR and Q scores and F Score of almost 9. I note Miton's Gervais Williams rates the management highly too.
So just topped up this one ahead of next week's results. Thanks for highlighting next weeks finals. Ian
Hi Ian - no problems. I meant to give you a thumbs up but inadvertently hit the thumbs down button. Apologies. Anyone know how I can undo this?
Imran.
I cant see any other reason for Treatt and Hilton Food dropping apart from Breixt uncertainity so im sure these will bounce up by some amount.
Why did Hilton Food (LON:HFG) not bounce yesterday when the polls were showing a remain win?
Treatt (LON:TET) are only 12% off 52 week high, so not down much and typical small co. price goes up and down, are there not relocation issues with them?
Is Hilton Food (LON:HFG) due to Brexit?
Yes I agree about Ab Dynamics (LON:ABDP).
Another one that may bounce is Trakm8 Holdings (LON:TRAK).
Housebuilders and property will also I think. Also car dealers like Cambria Automobiles (LON:CAMB) and recruiters like £STAFF may recover.
If you look at yesterday's (Monday) big risers you will see which ones are likely to bounce on a remain vote.
Treatt, Hilton Foods and 32 Red have all had a price drop due to brexit so expecting these to come back up.
I hold Ab Dynamics (LON:ABDP), and agree there are some concerns around Brexit, as I recall reading an article yesterday which said that in the event of Brexit car parts would become more expensive in the UK.
Another small cap, which has suffered in recent weeks is International Greetings (LON:IGR), they issued a bullish trading update recently and results are due next week.
Best wishes,
Imran.