StockSlam: A Record-breaking Crowd And 10 More Stock Pitches

9th Apr '21 by Ben Hobson

48 comments 8646 reads

StockSlam Online made a welcome return this week after the inaugural virtual-version of the event in February. A record-breaking 1,800 attendees were online on Wednesday evening to watch another round of rapid-fire stock pitches from PIs.

Hosted by the masterful Damian Cannon and managed and recorded by Tamzin and Tim at piworld, this month’s StockSlam saw 10 top-quality 3-minute investment pitches, plus questions and answers. Here’s a video of the event that is now available, plus a summary of the pitches.

Damian Cannon: Micro Focus International (LON:MCRO)
A high risk prospect following the disastrous merger with HP’s enterprise software division, leaving it with high debt and the prospect of litigation. But underlying profitability, a new management team and promising contracts may bode well for this company that is now one year into a three-year turnaround.

Keelan Cooper: Tharisa (LON:THS)
A profitable PGM metals / chrome producer based in South Africa with production that is forecast to grow strongly from here. Strong demand/supply dynamics bode well and the company is looking to diversify, but there are still risks.

Cockney Rebel: John Menzies (LON:MNZS)
This group sold its distribution division to focus as a pure aviation support business. Has significant debt but this has been falling and the business has been performing well. Regular contract wins, slashed costs and solid growth forecasts suggest this might be undervalued by a wary market.

Mark Simpson: Finncap (LON:FCAP)
This corporate adviser, brokerage and M&A specialist has just reported a better than expected performance. Revenues have been growing in recent years and income forecasts are up. With plenty of growth opportunities - possibly through acquisitions - is this too cheap for a growing company?

Lilian Nandi: Ashtead (LON:AHT)
This international rental company has strong exposure to the US. Traditionally focused on construction, it now operates in a range of industries, which helps to diversify some cyclical risk. Strong price performance in recent years and could go further as the economy opens up post-Covid.

David Thornton: Circassia (LON:CIR)
This single product pharma company is behind the niox test for asthma (which significantly outsells its rival). Ninety percent of group sales come from selling high margin consumables for its tests, which are approved and sold in all key markets. Strong sales, sufficient cash to…

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StrollingMolby

10th Apr '21

There's a few comments that the selection in this StockSlam wasn't as 'good' as the February picks, and there is an element of truth in that if comparing the StockRanks for example, but only time will tell how this basket will perform versus the February one. The average StockRank at the start is 71.8, whilst the February picks started at 76.1, and have since increased to 81.1 - see my analysis here StockSlam: Top Stock Pitches From Private Investors Are Back | Ben Hobson | Page 1 | Stockopedia

Also, it is nigh on impossible to get any measured, diversified portfolio when ten individuals get to choose a stock each - a bit like drawing the next bit of a monster on a folded sheet of paper with several friends as a kid, then opening it up to see what it looks like!

Anyway, here are the ten stocks with just two days performance since purchase in my April StockSlam portfolio:

6071dc0a9b74d7-Apr-21_StockSlam_picks_(a

The 4% gain has been massively assisted by the rise in Finncap (LON:FCAP) which has continued a sharp re-rating from ~23p since the start of March. Circassia (LON:CIR) is pulling the average StockRank down but let's see how this basket shapes up at the end of May (to match the seven week comparison I did of the February picks).

Rusty2

I don’t think the comments about selection were based on the Stockranks, mine certainly were not.

With only 10 shares, I think there maybe should be a limit of type of companies, for example there are 2 Basic Materials shares and both are very similar companies. A lot of investors don’t invest in mining companies. Maybe it is me but I found the previous meeting had shares I was interest in, not that I hold most of them. This time Finncap (LON:FCAP) was the only one.

This is the previous meeting: https://www.stockopedia.com/content/stockslam-top-stock-pitches-from-private-investors-are-back-766179/?comment=19#19

Damian Cannon

11th Apr '21

Thanks for your kind comments everyone and feedback on the StockSlam. One thing I'd like to make clear is that this is primarily a social event where investors, just like you and me, can put forward a share idea. No one is "tipping" these shares, there are no recommendations being made and the ten shares are not intended to create a balanced portfolio.

It's a fair point that the shares being picked can appear a bit random and something of a mixed bag. We have discussed whether we should somehow restrict the shares being chosen or guide the overall selection. The problem is that everyone pitching is volunteering their time and energy to the event. To try and force them to talk about a share that they aren't interested in just doesn't seem right.

What I would say is that if you think that the shares being covered are somehow boring or unbalanced then please put yourself forward to pitch at our next event on May 19th. We are always keen to encourage new presenters. If you happen to be a lady investor that would be even better as the gender balance is, I'm afraid to say, hardly equal in the slam or anywhere else in investing (for example Lilian signed up to be a first time pitcher and I thought that she did great).

I hope to see you all at the next event!

cdhinjan

I was in Micro Focus International. But when I signed up for Stockopedia, I sold my position for a small profit. The earnings were down. But the charts did show some nice fractals breakouts. Now it seems to me that this may well have been a good buy. The did secure a contract with Amazon Web Services.

I do like the Stockopedia reports. I’ll be using them to look for high quality, high value stocks which are ABOUT TO BREAKOUT.

I agree the pitchers should be keen on the shares they are pitching.

There are quite a few shares that I believe you own, that I would be interested to hearing more about.

Why did you pitch a share that you don’t own?

Maybe Members on here could put forward shares for pitching?

Whitbourne

Hi Damian, that point about 'pitching' not 'tipping' is really important. The way I look at it, the idea of the exercise is to help us all look afresh at shares we might not otherwise consider and also think how we would explain our own portfolios. It's great practice and really difficult to think what to leave out, when you only have three minutes. I find it valuable to see how people approach the task and how they think, as much as analysing the shares they have picked.

I sat down later and considered the 10 - and rejected them all, either because I felt I'd missed the boat Ashtead (LON:AHT) and Tandem (LON:TND) or already owned something similar Jubilee Metals (LON:JLP) or I just wasn't convinced by the risk/reward Circassia (LON:CIR) and Tekcapital (LON:TEK) but the way I look at it, that time wasn't wasted. Anything that makes me think from a new perspective is valuable. When a share has risen as much as Ashtead (LON:AHT) the question I ask myself is - why didn't I spot this 10 years ago? What companies in the market today have the potential of Ashtead in 2010 when the shares were less than £1?

My only improvement suggestion would be that if two people offer to pitch similar companies, Tharisa (LON:THS) and Jubilee Metals (LON:JLP) in this case, maybe ask one of them to postpone their pitch to the next session?

This would not address Paul's point about randomness (which to my mind is a feature not a bug) but if like Paul and herbie47 you know that you are not a natural resources investor then it would limit the number of pitches that were not of interest. Having one presentation out of ten when you can go and put the kettle on is no bad thing...

Ha ha good point - why didn't I pitch a share that I own? Well I wanted to investigate Micro Focus International (LON:MCRO) to see if I judged it worthy of investment and figured that having to present my conclusions would focus my attention.

I like your idea of having members put forward shares that they'd like to see pitched. That could definitely work.

Thanks Whitbourne I think that you've hit the nail on the head. The pitches are all about giving people the bones of an idea which they can then look into. For example I haven't considered Ashtead (LON:AHT) for a while and the prod to take a look was valuable. I can't really invest at current levels but I am more aware of its attractions following the slam.

You might be right that we could filter companies that offer almost identical investment attractions. That would give us ten relatively dissimilar shares which would provide something for everyone. We'll have a think about that.

Gostevie

Hi Damian,

That is what StockSlam is all about for me. Nobody with any sense will make an investment decision based on a three minute pitch and three minute Q&A session but if it brings companies to the attention of people for further research then that is a great thing,

Tekcapital (LON:TEK) was a case in point for me. I wasn't familiar with it but spent quite a bit of time researching it after the excellent pitch. In the end I decided not to invest, at least for now, but that didn't make it any less valuable.

Steve

rmoore91237633

early 2020, you mean covid then? pretty much everything was volatile then

jimrog64

12th Apr '21

Always an interesting set of starting points for further research. I was already a holder of two of these. I have had Tandem Tandem (LON:TND) for a few months and see that they have gone up a gear with a 10% rise on the day today. Can't see any specific news to account for it but perhaps something imminent?

Breakconvention

going to just add, no one is talking up TEK Cap & its a mistake. I have earned a good few grand off this share, there is genuine progress in their businesses & I think it will be a staircase rise first to 16p, then to 20+p over the next 3 months..., unless the market throws the toys out again, if Biden dies for example... if you look into the management team backgrounds involved here, they would not want to be involved if they did not really see potential to earn serious money...

Just want to say I've been loading up on TEK Cap at these prices, all it will take is a decent RNS regarding Saltme or Lucid or, the other 2 - its a great value share on sale...

UK_Investor_8888

14th Apr '21

Ballsy, Breakconvention! Hope it flies for you.

Simon Rowan

16th Apr '21

Thanks everyone involved. First one I have listened to and some very discerning well researched investors.

I got into Mcro at a very fortunate time, i.e just before and again after the lows. Its a great stock, but as people pointed out the debt is massive and also they currently are fighting a patent infringement currently awarded against them for about 10% of market cap. It could go higher or it could get rescinded altogether. Thats the exciting thing about MCRO it moves in quite large and mysterious ways.

Good director buying and of course the tie-up with Amazon could be a boost. I felt it had got a bit toppy from where it has come in the last few months so sold quite a large position. I did get the dividend which was very welcome. I would buy back in but looking for nearer £ 5.00 again which may not happen, depends a bit how the law suit works out and that could be a while.

I bought AHT. We all know women make the best investors so hope more of you out there presenting please! In positive territory there already thanks Lilian. I bought JLP and CIR . Both very well presented cases.

And not least for the best line in the presentations by Cockney Reble on MNZS 'its all a bit up in the air" the air industry. Priceless. So as its dropped back a bit this afternoon and I've nothing in travel at the moment happy to get in with the people on the ground. In fact all of the presentations were very well put so keeping an eye on the others. GL all

21st May '21

Tekcapital (LON:TEK) - Belluscura are listed as expected to start trading next Friday 28th May. - https://www.londonstockexchange.com/news-article/market-news/schedule-one-update-belluscura-plc/14987281

ManojMistry

1st Jun '21

Hi. I also loaded up on TEK after this Stock Slam and it is now up 41.6% as of today so far.

Oldsod

14th Jun '21

I have held Jubilee and Sylvania for about 2 years , Tharisa at the time of my investment was a marginal business with a much lower gross margn , limited FCF, and an indifferent ROC.

Jubilee was a turn round situation now a CGT hold as no dividends are paid it has created opportunity to profitably invest its capital rather than pay to shareholders- a Slater long term hold . It also has growth potential in the CU sector in Zambia and a CU option in Cypress it is not just SA and PMG dependant .The risks to all three operations are the price of rhodium , political change and implmentation of a mining tax ,power outages.

Sylvania is conservatively run buys back its shares when they fall below net assets and when executive executives share options are exercised. but has no ability to reinvests its profits at the same ROC

Tharissa will not be attractive when Rhodium prices fall

Poker111

15th Jun '21

And now Tekcapital (LON:TEK) recommended by Simon Thompson in the IC

CheshireUK

5th Jul '21

Nice rise on News for Tekcapital (LON:TEK) today, a recent addition to my portfolio but looks very interesting.

StockSlam: A record-breaking crowd and 10 more stock pitches

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Ben Hobson

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