Small Cap Value Report (Wed 24 Feb 2021) - VLX, BOTB, TOWN, ANG
Good morning, it’s Paul amp; Jack with the SCVR for Wednesday. Agenda - Volex (LON:VLX) - possible buying opportunity on spike down? Best Of The Best (LON:BOTB) - another strong trading update. Takeover bids have been ended. Finncap upgrades profit forecast by 79%! Angling Direct (LON:ANG) - year end trading update, and a mild profit warning for H1 for known reasons. Potentially interesting growth company. Town Centre Securities (LON:TOWN) - resilient property portfolio trading at a discount to net tangible assets (this section from Jack) . Small Caps - price volatility We’ve been having some interesting discussions here this week about the impact of IG’s decision to abruptly withdraw from offering about 900 leveraged products, mostly small caps. The reason is that they’re not making enough money offering these products, so are ditching them in order to focus on higher margin things. The problem apparently is that people like me sit on spread bets for small caps for long periods, often years, which ties up IG’s capital, for a paltry return (just a small profit margin on the funding charges). Fair enough I suppose, it’s up to IG to...