My esteemed colleague Graham Neary, a bloke whose analytical powers are tremendous, opined the other day that drinks firms make investors lots of money. Most of them, anyway. He was writing about Fevertree (FEVR), a company which puts a superior kind of tonic water into gin and tonics. I’ve also commended this lot on this delicious website before now. Since then the shares have risen about 40%.
Earlier this week, I covered Fevertree and noted that despite the extraordinary earnings multiple attached (100x the most recent six-month result), I thought a portfolio of similar companies might do reasonably well over the long-term. Of course, this would require that we succeeded in finding at least a couple which did fulfill their organic growth potential – not easy – and held them for the long run. This morning brings interim results from Just Eat (JE), and the features are somewhat similar.
Disappointing news emanating from Craven House Capital (CRV) at 11.20am today calling off the exciting move to the Specialist Fund Segment of the Main Market as it failed the eligibility criteria, so where does this leave the company now?
Elektron Technology (EKT) CEO John Wilson emphasises that “the group continues to make progress in the delivery of new product development programmes in our growth brands, which the board believes will significantly enhance shareholder value”, though current revenues (six months ending 31st July 2016) “are expected to be lower than those for the same period last year”. Hmmm…
Leading the losers board today currently is ShareProphets AIM-China Filthy Forty play China Africa Resources (CAF) with (last seen) a stonking drop of 36%. There is no news today, but yesterday’s interims, released at lunchtime, might provide the clue: it’s not pretty – the company needs to raise cash.
I start with the bad news for whoever owns Fred Olsen. I think look at Octagonal (OCT), Blur (BLUR), much ramped Keras Resources (KRS), XCite Energy (XEL), Magnolia Petroleum (MAGP), 88 Energy (88E), Highlands Natural Resources (HNR), Sareum (SAR) and then a joke IPO called Widecells (WDC), which listed yesterday and is now the subject of a ramp. Feel the stem cells. No actually don't. Just sell.
We spotted that that the Chief Marketing Officer of AIM-listed Purplebricks (PURP) had been beating a hasty retreat the other day, selling £341,000 worth of shares acquired from the exercise of options almost as soon as the certificate arrived. But it seems that Old Mutual had a similar idea.
FastForward Innovations (FFWD) issued an after-hours RNS yesterday at 4.59pm announcing its next investment. Surely it wasn’t embarrassed by it? Let’s take a look.
The hapless Phil Letts, founder and CEO of disaster story Blur (BLUR) must surely know that his time - and that of his grossly overpaid Mrs - is almost up. After another dire trading statement today, There's No Other Way, as Blur used to say:
Specialist provider of IT consultants, FDM Group (FDM) has announced results for the first half of 2016, noting a “strong” performance “is continuing into the second half… Notwithstanding the changing European political backdrop we remain confident that FDM is very well placed to meet the board's expectations for the full year”.
Good news. This is the sort of thing investors have been wanting Optibiotix (OPTI) to announce and it is delivering. The company says that the trial launch of its Slimbiome® ingredients in a range of meal replacement shakes and natural snack bars went well. In independent tests the ingredients of bars and drinks including Slimbiome showed fatties cutting calorie intakes by 20% or more and suffering fewer cravings.
Hello Share Screechers. It’s possibly time we looked at a share in the fabulous ‘slow, steady riser’ category. In some ways Ashtead Group (AHT) is a rather odd company to put our trust in.
I am challenged to comment on Cenkos (CNKS) as an investment in light of todays news on its role in the Quindell fraud (HERE). Okay, I do my best. Then it is on to Techfinancials (TECH), Advanced Oncotherapy (AVO) and some friendly advice for Malcolm Stacey, Gulf Keystone (GKP), XCite Energy (XEL) and then I end with Avanti Communications (AVN) where I hope you understand the historical analogy.
The saintly Labour MP Frank Field is almost always right. He was on the right side on Brexit and seems to be about the only MP serious about welfare reform. And he is right to castigate Phil Green for his greed and all round disgraceful behaviour at BHS - I agree the man is awful, see HERE. But Frank is wrong to say that Green's crimes are worse than those of another Labour MP and disgraced CEO, Bob Maxwell.
Yesterday saw the publication of annual results from one of the low-profile but high-quality companies on the market: PZ Cussons (PZC). Underlying results were unexciting but investors were treated to their 43rd consecutive year-on-year dividend increase from this 19th century business. It just goes to show that successful investing can be very, very boring.
Marketing analytics company Ebiquity (EBQ) has released a half year trading statement including that its “Marketing Performance Optimization practice has generated significant growth across all markets”, though that overall company performance is only “broadly in line with” (i.e. slightly behind) market expectations. The following reviews, with the shares currently 3% lower at 115p…
DIRECTOR PURCHASES SHARES screams the headline – in capitals - of an RNS from AIM-listed Frontera Resources (FRR) - not to be confused with Frontier Resources - this morning. Ooooh quick, let’s all pile in – follow the money, as they say, because the insiders know what’s really going on. Er, hang on a moment….
Sky News claims to have a source who says that Nomad and broker Cenkos (CNKS) is to be fined £700,000 by the FCA for its lamentable failings in the Quindell (QPP) fraud - Cenkos has now admiited that a probe is underway. Whilst I see this as another moment of vindication for my work in exposing that fraud it is simply not enough. The FCA is telling the City's banksters that turning a blind eye to white collar crime does pay. Its coke and hookers all round if this is the best that the FCA can do.
Frontier Resources (FRI) is no more. It is now Concepta (CPT), new shares for the RTO, open offer and placing have been issued and the shares have undergone a 250-1 consolidation.
KEFI Minerals (KEFI) “is pleased to announce that it has conditionally raised approximately £3.8 million (approximately US$5 million), before expenses, through the issue of 761,921,740 new ordinary shares… at a price of 0.5p per share”. Is it right to be so?
Following complaints from shamed share ramper Roger Lawson, ADVFN has insisted on a raft of new editorial controls on OneFreeShareTip.com. I did not re-start my life five years ago to be told what I could or could not write. I said no and ADVFN boss Clem Chambers has just said that the website will be shut down. So...our hand is forced ... Welcome to fivefreesharetips.com - we hope you join NOW HERE.
The August edition of the UK Investor Show Magazine is live featuring six share tips, the one gold share that all must own, and six reasons why the stock market may crash in 2017 and much more.
Earlier this month in Neil Woodford - how long before The Deadwood Press admits that he does not walk on water?, Tom noted a bad record – recently including Provident Financial (PFG). The Mail on Sunday had written “the FTSE 250 doorstep lender whose profits halved after it struggled to move to a new operating model” - the struggles have got considerably worse…
Showing not an ounce of humility, the fund manager who seems to have at least three high profile disasters as week, Neil Woodford has posted a comment on his group's blog explaining why Provident Financial (PFG) shares are cheap after yesterday's disastrous warning. But before you rush out to buy it is worth noting that after the last warning (in June) Nomates Neil posted another blog. Nomates had chatted at length to management, he understood the score, the market was wrong and Nomnates had bought a stack more shares. There seems to be a pattern here.
When Neil Woodford launched his Patient Capital Trust (WCPT) to much fanfare in 2015, everyone waited expectantly to see how he would start spending the £800 million war chest and so one had high hopes in April 2015 with the announcement of the first investment for the fund, namely a £4 million investment in an exciting quoted biotech play, Sphere Medial Holdings (SPHR). As an announcement last night showed, it has been as successful (or not) as one of his other uber-dogs RM2 International (RM2).
Once again I return to the subject of the company on AIM with the stupidest bunch of shareholders. The auditors of Bushveld Minerals (BMN) have stated explicitly that the company needs to raise fresh equity to avoid going tits up but shareholders respond by saying "how often have auditors got it wrong?" and a range of other excuses. They just do not get it at all, it is placing ahoy. Now the company has news today which the morons who own this stock seem to think is good. Ina private email this morning a top City broker put it thus:
On Monday 13th February, Tom Winnifrith noted a crazy market for resource juniors and that, as an experiment, we'd track a 'Dirty Dozen' of such stocks after 1 week, 1 month, 3 months, 6 months and on December 31. Here is a slightly late (so slightly longer than) 6 month update...
This week's Bulletin Board Moron contest is sponsored by the AIM Markets, the world's most successful growth market, now only slightly smaller than it was last year.
Optibiotix (OPTI) has announced that it has extended the Europe wide supply agreement announced with Sacco in March to cover the USA and Rest of the World. The new deal grants Sacco an exclusive licence to manufacture and supply OptiBiotix's cholesterol and blood pressure reducing LPLDL® strain in the US and ROW, in return for 50% of the profit, with a guaranteed cost of manufacture and minimum sales price per kilogramme to secure against discounting.
Hello, Share Mixers. As you may have gathered, I favour investment in all four big British banks at the mo. My main reason is that each time one of them announces new figures, its balance sheet seems to have improved nicely and the share price usually shoots up.
We asked you for suitable captions for the picture below of the leather man who took over from the cowboy as CEO of the Telit (TCM) village people. I refer, of course, to insider dealer Yosi Fait. You offered numerous suggestions as you can see HERE but there can be only one winner and it is
I wrote at the weekend about the surprising lack of TR-1’s at Red Leopard Holdings (RLH), particularly from the largest shareholder Spreadex, with the company having gone into suspension pending an RTO. Well, as if by magic, they arrived yesterday, after hours of course.
Ok this really is easy. All you need to do is to say which of the four well regarded and utterly honest individuals below is the odd one out and why. Do your worst. The deadline is midnight tonight (Wednesday)
Hello, Share Smugglers. The main staples of your portfolio, I should imagine, are in these popular sectors; oil, banks, pharmaceuticals, utilities and insurance. I could be wrong, but history shows that people who invested in these areas years ago still hold the stock.
It was around a year ago that I wrote an article about one of my then tips of the year BHP Billiton (BLT) observing that the world's largest mining company had just made billions of dollars of losses...but correctly the share price was going up. Billiton was a nice solid pick for 2016 but so far this year the share has been more volatile than remunerative.
Too many years ago to remember as a fledgling analyst and junior portfolio manager, I was told by an old hand that 'WPP is the company with the greatest correlation to the FTSE-100'. I have no idea - nor the boring Excel skills - to say whether this is true but the notion that the world's largest advertising company should broadly share the same ups and downs as the very international main UK market index makes quite a bit of sense.
Wishbone Gold (WSBN) has announced an £800,000 fund raise at 0.7p. Well we wish it was that simple. The mechanism is really very complicated but involves Yorkville so we imagine that there are people out there saying Death Spiral. They are wrong.
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