Featured Report:

Future proofing your portfolio: 4 stocks that could help

Phenomena like the Internet of Things (IoT), 5th generation networks (5G), automation, robotics, augmented reality and virtual reality (AR & VR), artificial intelligence (AI), and machine learning are on the horizon. Some are already here. These developments will dramatically disrupt daily life and the societies in which we live.

In this age of change, it's vital that private investors are aware of the trends that are heading our way because institutional investors and VCs certainly are. By being conscious of these trends, investors can position themselves and their portfolios to avoid stocks swimming against the tide of change, and to benefit from those companies that are well placed to capitalise on future innovation...read more... read more

Small-cap quantitative research - Momentum screen refresh + 9 focus stocks

Stadium, Eagle Eye Solutions, StatPro, Mortgage Advice Bureau, Gfinity, Faron Pharmaceuticals Oy, Lombard Risk Management, Warpaint London, Treatt | N+1 Singer, 25 May

Gold Access

"We have refreshed our momentum screen for a second time, the previous refresh having been in January. As before, the screen selects the 25 stocks exhibiting the strongest momentum, according to our measurement method. From these we selected 9 to focus on. Since the last refresh the screen has significantly outperformed both the main small-cap and micro-cap indices against a background of strong and stable momentum generally. We also present here a wider study of accelerating and decelerating momentum stocks, because of interesting behaviour noticed previously. The interim conclusion is that these two characteristics are a significant differentiator of performance. We show on pages 7 and 8 the current most accelerative and decelerative stocks..." 

Downgrade to forecasts
Revolution Bars (RBG) | finnCap, 22 May

Gold Access

"EBITDA guidance below expectations leads us to reduce our FY17E and FY18E adj. EPS by 22% and 19% respectively and PT from 250p to 180p..."

FY2017 results

Cranswick (CWK) | Whitman Howard, 23 May

Gold Access

"Cranswick’s (CWK LN, HOLD, T/P 2460p) preliminary FY2017 results slightly beat Bloomberg and Whitman Howard estimates at the revenue level with £1,245m of revenue. This represented a 22.5% increased on FY2016, which was equivalent to 12.7% like-for-like. So far, the current year is reported to have started positively..." 

Another two cylinders are spluttering…

Daily Mail and General Trust (DMGT) | Panmure Gordon, 25 May

Gold Access

"There may be some near term relief here in the fact that H1 numbers and FY guidance remains broadly on track. However, the mix is increasingly worrying. The DMGT portfolio has gone from ‘firing on all cylinders’ three years ago, to ‘mixed bag’ over the last 18 months, to ‘nearly everything’s struggling’. While areas of previous concern actually held up decently in H1, these results include reduced guidance for Genscape, Hobsons, and events. B2B in aggregate looks to be delivering low single digit growth, with overall numbers shored up by resilience in consumer plus good growth for part-divested businesses (Euromoney and ZPG). We do not expect our EPS estimates to change much (which is better than feared) but we see downward pressure to our 850p SOTP estimate, as structural growth in B2B continues to fade..."

Making gains in a competitive space
Cranswick (CWK) | Edison, 26 May

Free Access

"Cranswick has posted yet another year of strong growth. The business is witnessing growth in all its categories and strong innovation is keeping its offering relevant and desirable. Management has guided towards significant capex investment in 2017 to continue increasing capacity to match its growth prospects..." 

Strong performance across the group

Entertainment One (ETO) | Edison, 23 May

Free Access

"An excellent performance in Television and Family and the recovery in Box Office in Film underpinned strong revenue and EBITDA growth in FY17 and the outlook for FY18 remains positive. The efforts that the group has made to move closer to the creative process in Film, and to diversify beyond Film, has greatly improved the financial and risk profile. We expect the ratings gap to peers to narrow..."

A transformational year driving growth

Alliance Pharma (APH) | Equity Development, 25 May

Free Access

"Alliance Pharma’s buy-and-build strategy to evolve into a profitable, cash generative, specialty pharma business is clearly bearing fruit. Acquisition of the dermatology and woundcare products from Sinclair Pharma was transformational, doubling the size of the company and providing a more internationally-oriented business. The enlarged group is also a more attractive and credible partner for in–licensing and M&A opportunities. 2017 looks set to be an exciting year for the group: not only is there solid underlying growth potential in the re-focused group, but also regulatory approval of Diclectin offersfurthersignificant growth potential..." 

It’s good to be an Orphan

Amryt Pharma | AMYT) | Beaufort Securities, 23 May

Free Access

"Take a look! European investors are clearly failing to grasp the very significant financial and commercial benefits available for Orphan or Rare Disease drug developers. So much so in fact, that sector-focussed Amryt Pharma finds no quoted peers in London, yet a good basket of NASDAQ-listed comparables are seen to command a significant premium despite mostly being pre-revenue and somewhat earlier in their development. Such anomalies can and, of course, do rapidly correct. Given that Amryt’s lead indication (AP101) has a demonstrable market opportunity of US$1.35bn, is fully funded to the point of delivering ‘Topline Data’ in little over one year, while high-margin licensing revenues are now profitably building-out alongside a robust pipeline, such an event appears overdue..."