Category Archives: Investor

Our small-cap stock picking expert highlights two under researched anomalously priced investment companies on his watch list.

We are delighted to be included in Lord Lee’s latest article in the Financial Times highlighting Duke as one of his newest investments:

‘Current financial pressures on business are providing an increased flow of opportunities for Duke, enabling the group to selectively make perhaps four new investments a year. I expect both companies to grow over the medium term.’

Earnings momentum is the key driver of share prices, so it pays to know when a company is likely to beat expectations. Simon Thompson highlights two small-cap companies where both the earnings and investment risks are pointing to the upside.

The weather is warming up, spring is in the air and some 15 million Britons have now been vaccinated against coronavirus. Yes, we are all still in lockdown but the exit route is becoming clearer by the day and businesses up and down the country are feeling more hopeful than they have in months.

In many cases, the potential of these firms is not reflected in their share prices. The UK stock market has been battered since the Brexit vote, and is now at a record discount to markets in the rest of the world, according to the MSCI World index, which tracks shares in 23 countries, including the US, Japan and most of Europe.

Alternative capital provider Duke Royalty updated the market on its trading and operations on Thursday, reporting cash revenue for the third quarter of £4.2m, representing a record quarter of cash revenue generation for Duke. The AIM-traded firm said that, within that £4.2m, £1.7m related to the receipt of the redemption premium generated from the exit of Welltel in December.

The idea behind our annual Bargain Shares Portfolio is simple. It’s to invest in companies where the true worth of the assets is not reflected in the share price, usually for some temporary reason, but where we can reasonably expect that it will be in due course.