Small Cap Value Report (Mon 20 June 2022) - STEM, CBOX, RNK, SYS, FTC, PIER, NWT
Good morning, it's Paul amp; Graham on duty this morning.
Agenda -
Paul's Section:
SThree (LON:STEM) - an impressive update. Profit guidance is raised, with trading at least 5% ahead of market expectations for FY 11/2022. This share looks excellent value now, and I think 319p looks an attractive entry point, providing your macro view is not too gloomy.
Cake Box Holdings (LON:CBOX) - updates on timing for FY 3/2022 results, and reiterates they're in line with expectations. A minor technical issue re distributable reserves has arisen during the audit, but it doesn't look to be a worry. Previous accounting/audit problems have left a lingering question mark over this share though, and major holders nearly all seem to be selling, which could leave a prolonged overhang in the shares maybe? Stays on my watchlist though, as I do like the underlying business model.
Filtronic (LON:FTC) - a positive, ahead of market expectations update. Although updated broker forecasts show a drop in profits next year. I'm not keen on the business model, and erratic historic performance, so not of interest to me. It's difficult to justify the current valuation, when the market is throwing many bargains at us.
Graham's Section:
Rank (LON:RNK) -...