Small-cap catch-up featuring AIR, RWI and FOXT

4 mins. to read
Small-cap catch-up featuring AIR, RWI and FOXT

Air Partner Group (LON:AIR) – taking flight

Master Investor readers who bought shares in this aviation services group will have been pleased to see the US-based Wheels Up Experience Inc ‘on demand’ private aviation group bidding for the company.

The £84.8m cash bid is worth 125p for every Air Partner share, showing a clear 81% profit for holders.

I am sorry to see it go off my list, I do not consider that another bidder will spring out of the wings.

Amati Global have accepted the bid irrevocably for their 9.98% stake, while the group’s directors have accepted for their own pitifully small stake of just 1.80% of the equity.

That irrevocability lapses if another bid pops up at 140p or higher – which I doubt will happen.

Lord Lee of Trafford has accepted for his 4.88% holding, as too has Schroder Investment Management for its 10.86% stake.

That means that some 27.52% of its holders have accepted the bid.

(Profile 16.12.20 @ 69p set a Target Price of 89p)

Renewi (LON:RWI) – certainly not rubbish

This European waste-to-product group continues to please me. Last Friday it declared a Third Quarter Trading Update to the end of December 2021. Business has been so strong that it has had to upgrade its market guidance for the year to end March 2022.

The market was previously going for the underlying EBIT to be around €105m for the current year, compared to €73m in 2021. Now the company suggests that it will be at least €120m for the year.

The group’s shares hit 700p in reaction before closing the day at 663p, up just 6p. This group carries on increasing its growth and as such I feel that its shares remain a strong hold.

(Profile 09.10.20 @ 240p set a target Price of 350p)

Foxtons Group (LON:FOXT) – undervalued

The performance of the shares of this estate agency group has been a disappointment to me since I profiled the company last summer.

However, the 2021 year-end Trading Update issued last Thursday was a positive one.
The group delivered a much-improved performance, with revenues across all of its business segments for the period, well ahead of the prior year and 2019.

It reflected organic market share growth, the contribution from acquired lettings businesses and improved market conditions.

The finals, which will be released on 2 March, could show a 42% uplift in revenue to around £133m, while its operating profit of some £7m will prove to be at the top end of market expectations.

The shares, which collapsed within days of my profile, closed at just 40p on Friday night, so they have still got some upside to work at to get back up to my profile price, and even further to hope in hitting my price objective.

I am not giving up hope yet – this is a cracking little operation but it has lousy coverage in both the stockmarket and the financial media – that needs to change if shareholders are seeking proper valuation.

(Profile 07.07.21 @ 60p set a Target Price of 76p)

Bloomsbury Publishing (LON:BMY) – more than a good read

Lousy coverage is not something that my favourite publishing business suffers from and understandably so.

Last Wednesday it issued a Trading Update for the current year to end February. Revenue for the year is expected to be comfortably ahead of market expectations, which is a consensus £197.1m. Its pre-tax profit will be materially ahead of the anticipated £20.1m. Those figures will be declared in May.

I really like this company, which I have been following closely since it came to the market in 1994 – yes, I am very old!
It appears that the group, best known for its success with JK Rowling’s Harry Potter series, has seen strong trading in its Consumer side, in both its Adult and its Children’s publishing.

Elsewhere the group is vey excited about the growth and the potential for its Digital Resources side.

The shares, which hit 405p in July last year, closed the week at 371.5p – at which level they remain a very firm hold.

(Profile 28.02.19 @ 231p set a Target Price of 257p)

(Profile 27.03.19 @ 238p set a Target Price of 270p)

Europa Oil & Gas (Holdings) (LON:EOG) – gushing away

What a stunning dealing volume there was last week in the shares of this exploration, development and production group after my profile on the company.

It was, no doubt, boosted by the ace investor Simon Cawkwell (Evil Kneivel), who purchased 1m shares at 1.70p each. There were 7.9m shares traded on Tuesday, 10.2m on Wednesday, 10.9m on Thursday and a quieter 5.5m on Friday.
That volume is remarkable because the previous average daily volume was some 1.3m shares traded.

I have great hopes for this group’s shares, which closed at 2p after some end of week profit-taking.

There are no worries that my price objective will not be achieved.

(Profile 24.01.22 @ 1.57p set a Target Price of 2.25p)

The Brighton Pier Group (LON:PIER) – all the fun of the fair to come

The mid-month Trading Update from this entertainment group was very positive and that was despite Covid-19, Omicron and other hassles.

In its first half to 26 December last, it is looking for a 177% uplift in revenues to £22.7m. That figure would be even 31% better than its pre-Covid period in 2019.

The group’s brokers Cenkos Securities are estimating some £37m of sales in the year to end June (£13.5m) and a doubled EBITDA at £10m (£5.1m). That could take current year earnings up from 5.7p to 11.9p per share.

That is why investors are increasing the bullish call for the group’s shares, closing at 91p on Friday night after peaked at 96p last Tuesday.

They have a lot further to climb yet so hold very tight in the ascent.

(Profile 30.06.21 @ 61p set a Target Price of 75p*)

(Asterisks * denote that Target Prices have been achieved since Profile publication)

Comments (1)

  • Surinder DB says:

    Hi Mark,

    “Timing is such a gamble, no matter you do. So, my follow-up on this convenience stores outfit, suggesting that holders in at my original profile price could buy another four times the original number was fortuitous.”

    I for one quadrupled my stake in MCLS .

    Would welcome your view on the following:

    1 Will the banks continue to support the business?
    2 Is the management capable of generating a profit from the substantial turnover?
    3 What is your take on the SP over a 12 month frame?

    Thank you for all your efforts to shine some useful light on the path to investing success!

    Kind regards,

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