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 24.03.20 CV19 Market Recovery Portfolio + 35.59%
This portfolio of 10 stocks has continued to show a very good performance over just five weeks. The FTSE100 Index is up 6.02% in the same time frame.
Robinson (LON:RBN) – still more to go for
I have to say that I have been delighted with the excellent performance of this packaging group’s shares since I profiled the company at 55.5p less than a month ago.
They touched 89p on Wednesday of this week, up 60%.
They close the week trading at around the 81p level.
I was impressed when I heard Dr Helene Roberts, the CEO, on Radio Five earlier this week.
I still think that they will be worth a great deal more over the next year or so.
Profile 02.04.20 @ 55.5p set an end-2020 Target Price of 80p *.
Loungers (LON:LGRS) – even the directors have been coughing up
Very good to see this restaurants and bars group’s directors and management showing big faith in the company.
Executive Chairman Alex Reilley bought 654,675 of the recent 9.25m share placing @ 90p each, taking his holding up to 7.2m (7.08%), while Jake Bishop, the Commercial Director, bought 650,675 shares, upping his stake to 7.16m (7.03%).
Lion Capital increased their stake to 29.22% of the group’s equity.
Let us hope that the group can see a sensible return to trading as soon as possible. They have a good style and, given good times resuming, they can do very well again.
The shares, which touched 273p at their best since my profile last September, dipped to a 77p low just a week ago, before the fund raise helped to lift them back up to 97p by Tuesday of this week.
However, they close the week at around the 91p level, which must offer medium-term investors a very good buying opportunity.
Profile 03.09.19 @ 205p set an end-2020 Target Price of 275p.
Brickability Group (LON:BRCK) – bricking it is good business
News that the construction industry is beginning to accelerate its return to working on site is surely good for this bricks and building materials supplier.
Its shares have been creeping better since my mid-month profile at 39p.
When its end-March 2020 final results are announced in the next month or so, I would expect a much more up-to-date report on just how the company has been trading in the first part of the current year.
I have little doubt that my target will be achieved, its shares end this week at around 45p.
Profile 16.04.20 @ 39p set an end-2020 Target Price of 55p.
Forterra (LON:FORT) – gradual re-firing of its kilns
The return to housebuilding sites creates demand for this group, so too do its merchant customers.
Over the next month I would expect this leading UK producer of manufactured masonry products to return to production at three of its facilities.
However, manufacturing at the majority of its facilities will not get underway until early summer.
Unless, of course, demand suddenly picks up to require earlier production en masse.
After hitting 150p a month ago, the shares have subsequently edged higher to the current 243.5p.
I see them moving above the 300p level within months.
Profile 30.05.19 @ 286p set an end-2020 Target Price of 350p *.
Alumasc Group (LON:ALU) – getting back into action
In an operational update issued earlier this week this building products supplier declared that it has actioned a phased re-opening of some of its operational units.
It already had some that had stayed open during the lockdown, but it is encouraging to see that the company is ready to press ahead and try to cope with these external pressures.
It has good banking facilities and has put a temporary hold on its pension contributions.
The shares, which touched a 60p low over the last month, are closing the week looking stronger at 77p.
Profile 13.02.20 @ 116p set and end-2020 Target Price of 145p.
M P Evans (LON:MPE) – still buying their own shares
Straight after Christmas last year the shares of this palm oil group were trading at a high of 756p.
A month ago they were 470p. A week later I profiled the company at 540p.
Since then the company has been buying in more of its own shares at prices from 525p to 600p each.
On Wednesday they hit 660p, they close the week at around the 596p level.
Methinks that they will hit my year’s goal sooner than I expected.
Profile 07.04.20 @ 540p set an end-2020 Target Price of 700p.
(* denotes that Target Prices have been attained)