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Simon Thompson

A quartet of small-cap buys Four small-cap companies offer solid prospects for share price re-ratings in the months ahead ...

30 March 2015

Simon Thompson

About Simon Thompson

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

Recent articles

  1. Suitable investments for growth

    Suitable investments for growth

    26 March 2015

    Shares in two small cap companies offer potential for double digit gains in the months ahead

    ‘The chart set-up is certainly positive as shares have taken out the early March high of 105p, are not overly extended above the 20-day exponential moving average (EMA) around 101p, the 14-day relative strength indicator (RSI) has a reading in the mid-60s so is not too overbought, and for good measure the moving average convergence divergence (MACD) momentum oscillator is above zero and its signal line, and has just given an official buy signal. In the circumstances, I feel a return to the price highs around 126p from May last year looks firmly on the cards.’

  2. Buy-outs and bumper profits

    Buy-outs and bumper profits

    25 March 2015

    As M&A activity engulfs the stock market minnows, some of Simon Thompson’s stock picks have been making the news

    'The company will have net funds of around £2.45m which is only £700,000 less than in July last year, but it is acquiring a business expected to generate £700,000 of annual pre-tax profits in its first full-year under ownership. Rated on less than six times fiscal 2016 earnings estimates net of pro-forma cash of 9p a share, the shares rate a strong buy at 49p and I have a target price of 67p, or 9 times cash adjusted earnings.'

  3. Bargain shares updates 2015

    Bargain shares updates 2015

    24 March 2015

    Five bargain shares offer value opportunities for medium-term gains

    Trading 30 per cent below net asset value, rated on 9 times conservative looking earnings estimates for fiscal 2015, and with the stock overhang cleared at the end of last year after an activist investor exited the share registrar, I feel the shares are well worth buying

  4. In the fast lane

    In the fast lane

    23 March 2015

    An accident management and legal services company is motoring and its high-yielding shares are worth buying

    With both the technical and fundamentals supportive, I feel that it's worth buying the Aim-traded shares on a bid-offer spread of 107.5p to 108p. My initial target price is 125p and the timeframe for this trade is six months

  5. Below the radar

    Below the radar

    19 March 2015

    'Shares in two small-cap companies offer value, and there are catalysts to spark a re-rating'

    'The company has a rock solid balance sheet with about 60 per cent of the current share price covered by cash and liquid investments. To put that into some perspective, after taking into account these liquid resources, a business that is predicted to generate annual profits of £5.3m at current exchange rates, is in effect being valued at £13m!'

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