A ‘Small-cap Catch-up’ with Braemar, Alumasc, Image Scan, Augean and Medica Group

4 mins. to read
A ‘Small-cap Catch-up’ with Braemar, Alumasc, Image Scan, Augean and Medica Group

Braemar Shipping Services (LON:BMS) – ready to sail away again

Yesterday’s AGM statement from this group stated that the financial and operating performance for the first five months of this current year had been good across all three of the group’s divisions.

They stated its business diversification had insulated the group from any ongoing pandemic weakness.

The board is united in seeking to develop further the group’s growth strategy and we look forward to the remainder of the financial year with confidence.”

Guy Hewitt and Michael Clifton, analysts at the group’s brokers finnCap, have an estimate for the current year to end February 2022 of £122.4m of revenues and £11.3m pre-tax profits, worth 24.1p per share in earnings, easily covering a 5.7p per share dividend.

Their price objective for the shares is a cracking 444p, compared to the current 297p.

The interim results are due in November, before which the shares should have put in a good upwards movement.

(Profile 05.12.19 @ 185p set a Target Price of 250p*)

(Profile 20.05.20 @ 99p set a Target Price of 150p*)

Alumasc (LON:ALU) – my short-term forecast is 287.5p

Well how right was my article on this premium building supplies group?

At the start of August (9) I wrote a profile on the company, reminding readers of its value ahead of the results due soon.

It was headed ‘Alumasc – The market does not always do just as you hoped.’

How apt was that?

The price was then 230p, it proceeded to flop off to as low as 201p within the next two weeks.

But then on Tuesday of this week, they started to move a lot better, jumping 20p to close at 235p on the day.

May I remind you that the group’s results, its finals to end June this year, will be declared on Tuesday 7 September.

The figures could well be good enough to more than justify a price 50p higher than the current end week price of 237.5p.

My forecast for the shares is around 287.5p within weeks.

(Profile 13.02.20 @ 116p set a Target Price of 145p*)

(Profile 08.06.20 @ 80p set a Target Price of 105p*)

Image Scan Holdings (LON:IGE) – ‘penny-stock punting’ appeal

Could we be close to getting a Trading Update from the X-ray imaging security and industrial inspection specialists – last year one came out at the beginning of September.

The finals to end September this year will not be too sparkling, despite a growing order book.

However, the comment on the year ahead could well be enlightening and help to put some fat on the very skinny bones of its share price.

Now at just 2.35p the group’s shares, which topped 4.54p in June, have some strong speculative appeal for penny-stock punters.

(Profile 26.05.21 @ 2.75p set a Target Price of 3.5p*)

Augean (LON:AUG) – just sit tight, a bid battle ensuing?

I can remember doing a Master Investor podcast with James Fletcher and Victor Hill late last year, in which I napped two companies in the waste management sector – Renewi (LON:RWI) and Augean – both of which have since risen significantly in price.

Renewi were then around 350p, today 528p, while Augean was around the 200p mark.

Earlier this week Augean displayed magnificently how undervalued it was in the market.

After having waited upon Morgan Stanley Infrastructure to make a sensible bid for the group and agreeing its 300p a share offer, it has now accepted a £341m buyout offer from a consortium of investment managers Ancala Partners and Fiera Infrastructure, worth 325p a share.

That they have subsequently increased in price to 339p, before easing fractionally to 335p, is perhaps a classic market indicator of a pending and ongoing bid battle for the waste group.

I love it!

Just sit tight.

(Profile 31.10.19 @ 158.5p set a Target Price of 200p*)

(Profile 10.06.20 @ 80p set a Target Price of 105p*)

Medica Group (LON:MGP) – buying ahead of the interims

On Wednesday of this week Aberforth Partners quietly added to their growing holding in this medical service group.

They purchased more shares taking their holding up to 18.6m, representing 15.19% of the teleradiology operative’s group’s equity.

The company will be presenting its half-timers to end June on Monday 27 September, which should be interesting.

However, before that the group is holding a Capital Markets Day on Tuesday 7 September.

Towards the end of last month, the group announced, in a Trading and Business Update for the six months to end June, that both the UK and Ireland businesses had performed strongly against a backdrop of a sustained recovery in the activity of diagnostic services.

Analyst Graham Doyle from brokers Liberum Capital rates the shares as a ‘buy’ looking for 235p in due course.

The group’s shares, which have been up to 190.5p this year, have subsequently slipped back to the current 162p level.

(Profile 07.01.20 @ 155p set a Target Price of 215p)

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