In this weekly summary, Mark Watson-Mitchell updates his readers on previous company profiles and other news of interest from the exciting world of small-cap shares…
Coral Products (LON:CRU) – £12m tag, £7.5m cash, £11.7m sales and £1.1m profits severely undervalued
Following recent disposals and the acquisition of a very useful new subsidiary this plastic products group continues to look too attractive to disregard.
With its shares trading at just 14.25p, the group, with three profitable and cash generative subsidiaries, is capitalised at only £12m, yet it will end the year with some £7.5m cash and making £1.1m pre-tax profits on some £11.7m of group sales.
That is totally the wrong price and eventually the market will realise the value of its shares.
Still time to get aboard while others are dithering.
I consider that there is easily 25% in the shares in the very short-term.
(Profile 28.04.21 @ 14p set a Target Price of 18p)
National World – very big dealing volumes precursor to early action to come
It could well be worth paying close attention to the share price of this emerging media group.
The dealing volumes have been rising significantly in the last few days. Well over twenty times the daily average yesterday alone.
On 1 June the company published a bullish trading update for the 21-week period to 29 March.
The AGM is due to be held on Wednesday 30 June, at which I cannot imagine boss David Montgomery not helping to push further that same trading tone.
Remember that the group’s broker Dowgate Capital has an early price objective of 32p on the shares, while suggesting that 40p per share could be the price as it reflects on the use of its massive cash balance.
The shares at 24.5p still offer great ‘buy to build’ value.
(Profile 17.05.21 @ 18.5p set a Target Price of 25p*)
SDI Group (SDI) – Chairman sells big chunk and Danish bank move in
On Wednesday of this week the Copenhagen-based Danske Bank took their stake in this digital imaging and sensing group to a declarable 3.11% of its equity.
The news follows the very likeable Chairman, Ken Ford, selling off 500,000 shares @ 183.15p each two weeks ago.
The group, which will be announcing its finals to end-April this year on 20 July, reported that its sales and order intake has been robust across all of its businesses.
The shares close the week at around the 203.5p level.
(Profile 28.10.20 @ 76p set a Target Price of 95p*)
McColl’s Retail Group (MCLS) – bigger daily dealings to be noted
Another stock on the move upwards accompanied by heavier than average daily dealing volumes is this ‘neighbourhood’ retailer.
Its relationship with the Morrisons supermarkets chain is seen to be extremely positive for both groups.
I really do have a strong feeling that my price objective will be achieved and beaten very shortly.
(Profile 26.04.21 @ 32.5p set a Target Price of 41p)
Gattaca (LON:GATC) – up 50% in one month and more to come
Apparently, this specialist engineering and technology recruitment solutions business is doing very well in the run-up to the end of its current trading year to end-July.
Staff shortages are now something of a ‘normal’ – isn’t it weird the way things turn so quickly.
Certainly, the group’s followers are showing continued interest in its shares.
They are closing the week at around the 222p level, a few pence below their recent 227.7p peak. That is the highest point for over three years.
However, it was seven years ago when they were dealt at close to 622p.
But coming back to post Covid-19 hassles I have to say that I am pleased to see that they have done so well since my profile just one month ago – up 50%.
And I still see greater upside on offer.
Hold very tight – we should get another trading update within the next month or so.
(Profile 10.05.21 @ 148p set a Target Price of 185p*)
(Asterisk* denotes that Target Prices have been achieved since profile publication)
Profile company results, meetings and updates expected within the next two weeks:
|discoverIE Group (DSCV)
|Pressure Technologies (PRES)
|Ramsdens Holdings (RFX)
|Anexo Group (ANX)
|Elixirr International (ELIX)
|Medica Group (MGP)
|Time Finance (TIME)
|T/U + Web
|Halfords Group (HFD)
|RBG Holdings (RBGP)
|Gulf Keystone Petroleum (GKP)
|Randall & Quilter Inv Hldgs (RQIH)
|Palace Capital (PCA)
|Trackwise Designs (TWD)
|Angling Direct (ANG)
|Vertu Motors (VTU)
|STM Group (STM)
|Westminster Group (WSG)