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Simon Thompson

Running bumper profits Shares in a quartet of small-cap companies have soared this year, and are trading close to multi-year and record highs, but this is not the time to bank profits ...

27 August 2015

Simon Thompson

About Simon Thompson

Winning stock and trading ideas from the creator of the Bargain Portfolio

Recent articles

  1. Stay calm

    Stay calm

    25 August 2015

    Markets have endured a rout in the past few weeks, but Simon Thompson can see light at the end of the tunnel

    ‘With global markets under severe pressure, it takes nerves of steel to contemplate buying equities right now especially if the Asian growth scare morphs into a crisis like 1998. The implication from my assessment of past market bottoms is that equities in Asian markets could potentially fall another 10 per cent, and western equities would be dragged down further. Although valuations are the main driver of long-term returns, the key driver over shorter horizons is the attitude of investors toward risk, and at the moment they are running scared.’

  2. Bargain Shares updates

    Bargain Shares updates

    17 August 2015

    Simon Thompson's portfolio of bargain shares is beating the market once again

    This investment strategy has undoubtedly stood the test of time, having beaten the FTSE All-Share index in 13 of the 16 years in which I have run my annual Bargain Shares portfolios. During that time, they've generated an average return of 22.7 per cent in the first 12-month holding period, compared with an average increase of 4 per cent for the FTSE All-Share.

  3. Bumper cash returns

    Bumper cash returns

    13 August 2015

    ‘Shares in two small cap asset backed companies have soared and offer further scope for future gains too.’

    ‘Planning applications for 329 residential plots across eight development sites are currently being considered by various local authorities with further applications for 1,196 residential plots to be made in the near future. However, land inventories were only in the books at £68m at the end of December, so as land parcles are sold off to major housebuilders the company is set to reap some huge profits on its 5,000 plot land bank.’

  4. Fuelled for strong growth

    Fuelled for strong growth

    12 August 2015

    Shares in two companies exposed to the oil and gas industry have been bucking the trend and look well placed to prosper in the year ahead

    The company had net funds of £4.7m at the end of January, so after settling the initial cash consideration on a recent acquisition, I reckon it has at least net cash of £3m on the balance sheet, or 9p a share. This means that on a cash-adjusted basis, the shares are trading on 10 times last year’s earnings and only 8 times forecasts for the fiscal year to end July 2016. There is also a decent 4 per cent plus dividend yield on offer, too.

  5. Procuring growth

    Procuring growth

    11 August 2015

    Shares in a software company look poised to rally sharply ahead of a bumper set of full-year results

    Importantly, all these bolt-on acquisitions have delivered which is why the company will report a surge in profits and revenues in its full-year results. The shares are priced on 13 times cash adjusted earnings estimates and offer a prospective dividend yield of 1.4 per cent, but forecasts don't include any contribution from a recent collaboration agreement, a conservative assumption to the say the least. There is scope for earnings uplifts from further bolt-on deals, too.

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