Small cap round up: featuring Crimson Tide, Gym Group, Avon Rubber and more

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Small cap round up: featuring Crimson Tide, Gym Group, Avon Rubber and more
Master Investor Magazine

Master Investor Magazine Issue 57

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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 stocks…

The Gym Group (LON:GYM) – strengthening price

This health and fitness club’s shares have been a very good performer over the last few months. Since early August they rose from 230p to 243p three months later.

However, in the last week they have closed at 288p after touching 295p.

Could a reason for the advance be that we are just three weeks away from the company announcing its pre-close trading update? That is due on 17 January.

I see my target price being scored almost a year in advance.

Profile 11.04.19 @ 220p set end 2020 Target Price of 300p.

Crimson Tide (LON:TIDE) – long-term contract news

Last Monday saw the group announce that it had signed up a significant long-term contract, with one of the country’s leading supermarket groups, for its mpro5 solution – worth at least £2m over a five-year period.

Its trading update predicted that its 2019 turnover will be at least 15% ahead of 2018, while its pre-tax profits will be substantially up on the previous year.

As for the coming year, I would expect its strong pipeline of business to yield even bigger profits.

Obviously still very much a speculative situation, until the big profits start to show, but this could well turn out to be a wonderful ‘penny stock winner’. The company’s shares closed up 0.36p on the week at 2.46p.

Profile 08.10.19 @ 2.8p set end Target Price of 5p.

Avon Rubber (LON:AVON) – tucked into the vest

Anticipation that this innovative technology group was going to be granted permission in the US to acquire 3M’s ballistic protection business, has been beneficial for the shares.

In the last three weeks they have risen from 1,950p to close this week at 2,117p, up 117p this week alone, but that was after peaking at 2,187p on Friday morning.

Although I only profiled the company less than three months ago, I have been pleased with the performance for this very solid company.

They have broken my early price goal of 2,000p and are now firmly set on breaking the 2,250p level.

Profile 03.10.19 @ 1,700p set an early TP of 2,000p and an end-2020 Target Price of 2,250p.

Futura Medical (LON:FUM) – a quick easy raise

Raising £3.25m, in a quick fundraising at just 8p a share, has helped to boost the drug delivery system group’s shares, closing the week at 14.55p.

Impressive to see the faith that investment and banking outfit Lombard Odier has in the company and its potential. They were scaled back on their application for stock in the oversubscribed placing, even so they invested £1.75m to acquire 21.875m shares. I will now set an end-2020 target price of 30p.

Profile 14.03.19 @ 15p but set no Target Price.

Hollywood Bowl (LON:BOWL) – a lot more to score

In just over a month we have seen a wonderful gain on this tenpin bowling centres group. Its shares have risen from 235p on General Election day to peak at 293p last Monday. They close the week at 287p after a spate of profit-taking.

Even so, I see my target price being attained within weeks, possibly within days.

Profile 14.11.19 @ 240p set an end 2020 Target Price of 300p.

Springfield Properties (LON:SPR) – stronger over the border

Another stock that has done well since we went to vote is this leading Scottish housebuilder.

For months its shares have been pathetic in performance, dipping to as low as 97.5p in mid-August.

But since Boris scored, so too have its shares spurted – rising from 114p to 144p at one stage this week.

There is more to come from this undervalued company.

Profile 05.03.19 @ 114p but set no Target Price.

Angling Direct (LON:ANG) – still reeling them in

The news that this fishing tackle retailing group is continuing to expand its little empire is very positive.

The company recently reported that it had enjoyed record sales on Black Friday.

Then last Monday it declared that it had opened yet another store – that now makes 34 – at Swinton, Greater Manchester.

The group’s shares closed the week quite firmly at 69.80p. 75p shortly?

And I hold firmly to my end-year target of 100p.

Profile 29.10.19 @ 58p set end 2020 Target Price of 100p.

Ramsdens Holdings (LON:RFX) – redeeming

Well my end-2020 target is very close to being achieved.

This pawnbroking, jewellery retailing and foreign exchange dealing group has done well in the last two months, pushing on from a 186p low in mid-November to close this week at 241.9p – that is just 8.1p away from my TP.

I like the feel of this company and I do see its shares rising even higher yet.

Profile 07.11.19 @ 204p set end 2020 Target Price of 250p.

Volution Group (LON:FAN) – powering way

Brokers Liberum Capital have recently upgraded their view of this now international ventilation and heating products group’s shares.

They are going for 275p – the news of which has helped boost the shares, which close the week at 251.8p, after hitting my end-2020 target price of 250p early on Christmas Eve.

Do not underestimate the potential of this group.

Profile 23.05.19 @ 174p set an end 2020 Target Price of 250p.

Joules Group (LON:JOUL) – hoping for good seasonal sales figures

Just how will this multi-channel retailer have fared over the last few weeks. First of all, there was Black Friday and then there was the inevitable trading up to Christmas.

We all know that it has been rough out there on the High Streets across the UK, and that companies are being continually hit with rising operating costs, especially on business rates.

So just how well will this famous brand have done in the seasonal push for shopper’s pounds?

We have already had the benefit of a ‘so-so’ trading update a few weeks ago.

However, we will get some definitive news on trading when the company announces its interim results on Tuesday 21 January.

The group’s shares, which have not been a strong market of late, may well be a pointer that the company has found the going tough.

I like this business, its products and its branding and especially its potential – but how soon will that show through?

The shares now at 228.7p are well behind my profile price and far below my end-2020 target.

Even so, I suggest that they will show recovery in due course, if you are brave enough to endure the ride.

Profile 19.03.19 @ 282p set end 2020 Target Price of 387p.

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