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Simon Thompson

Punching above its weight A small cap software company offering bumper profit growth has been winning contacts with some big names in the wireless video market ...

27 January 2015

Simon Thompson

About Simon Thompson

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

Recent articles

  1. Super Mario ignites markets

    Super Mario ignites markets

    26 January 2015

    The ECB’s bond bazooka has major ramifications for a host of markets

    ‘The mechanism for QE is simple enough: by forcing investors up the yield curve by reducing the returns on ‘risk-free’ sovereign bonds, this inflates asset prices across a wide range of assets, equities included, as capital is recycled in search of yield. There is little reason to expect this time to be any different given that yields on €1.6 trillion of European corporate and government debt, out of a total of €10.6 trillion in the region, is now in negative territory. And it’s not just investors who will be exploiting the shrinkage in yields.’

  2. Small-cap tech wonders

    Small-cap tech wonders

    19 January 2015

    'Shares in four tech stocks have all hit Simon Thompson's target prices, but is it time to bank profits and what lessons are there to learn?'

    'Robust cash flow generation, high recurring revenues, progressive dividend policies underpinned by strong expected earnings growth and cash rich balance sheets have been features of all the four tech stocks, characteristics well worth noting in the hunt to replicate this success.'

  3. Emerging market rout hits Charlemagne

    Emerging market rout hits Charlemagne

    13 January 2015

    Shares in an emerging markets asset manager have been hit after the company warns on profits

    'There are positives though. Firstly, given the company has net cash and liquid investments of $24m, or the equivalent of 5.5p a share - the board will pay a second uncovered interim dividend. On this basis, the dividend yield is 6 per cent.'

  4. Break-out looming

    Break-out looming

    12 January 2015

    ‘With both the technical and fundamental case strong, the odds favour an imminent share price break-out for a small cap marketing services provider’

    ‘Clearly, there is execution risk as the company has been winning substantial amounts of new business which has to be profitably carried out. It’s therefore reassuring to know that the management team applies stringent criteria to all new contracts being tendered for. Or put it another way, the rates of return are well in excess of both the cost of equity and the blended cost of capital so enhance earnings.’

  5. Buy into an earnings upgrade

    Buy into an earnings upgrade

    08 January 2015

    ‘A small cap property fund manager has pulled off two smart looking acquisitions which have led to massive upgrades’

    ‘The shares are priced on a forward PE ratio of 7 and offer an attractive prospective dividend yield of 3.8 per cent. The share price is also well supported by the underlying value of the assets. In my opinion a 10 per cent premium to net asset value is still an attractive entry point given the solid recurring revenue stream from the portfolio and potential for the company to raise the dividend while paying down debt.’

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Chronic Investor Blog

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