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Simon Thompson’s five small cap buys, Taking Stock, Podcast, ‘buy on dips’ & more

IC Daily email update
May 23, 2017

In Simon Thompson’s column today, our small cap stock picking expert returns from a well earned vacation and offers up no fewer than five small cap investment opportunities including a stockbroker and financial services outsourcer that’s just reported a 25 per cent hike in revenues year-on-year with the earnings risk still skewed to the upside; a provider of gas heating appliance installation and maintenance services that has seen analysts upgrade profit estimates by 25 per cent; and a closed-end investment company whose main shareholding has soared in value on news of a disposal, but it’s still possible to exploit a valuation anomaly.

In his Taking Stock column this week companies editor Ian Smith looks at the proposals of the main political parties on intervention in the business world, moving on from the proposed energy caps to takeovers, renationalisation and investment in targeted industries. Find out his verdict here.

Our resident economist Chris Dillow’s latest analysis shows what circumstances are best for investors to ‘buy on dips’ and how to avoid getting caught out by a ‘dip’ that becomes a slump.

For the latest in our Extraction podcast series, Alex Newman talks to Aim-listed SDX Energy's chief executive Paul Welch about doing business in North Africa, how the company will fund its next well, and why the company is confident of making money even if Brent crude falls to $21 a barrel. Listen here.