See what was trending this week...
Companies: 7DIG, 0RSP, AVON, BLTG, PRSM, BBSN, CTH, DQ6, CVSG, E3C, ELM, EUSP, FDM, FA/, GKN, HVN, HRI, HILS, HCM, INF, IQE, SQS, MYSL, NEXN, NOG, OTB, POYYF, PPIX, QRT, 21W, RENE, RNO, RTHM, RWS, SNR, SERV, SFR, STJ, SNX
Best Ideas 2017 - H1 Review
A strong H1, CVS Group and Renold added for H2
By N+1 Singer, 3 July
Gold Access
IQE | Renold | SDL | CVS Group | Elementis | Redde | Reneuron Group | Mysale Group | Servelec Group | Herald Investment Trust | Severfield | Rhythmone | Cineworld Group | Hill & Smith
"Today we publish our H1 review of our Best Ideas for 2017 – the document in which we also outlined our key top down and bottom up investment themes for the year. Our 12 top picks in January were Cineworld, Elementis, Herald Investment Trust, Hill & Smith, IQE, MySale, Redde, ReNeuron, RhythmOne, SDL, Servelec and Severfield which have collectively outperformed the wider market by 13% YTD. At the half way stage we retire Cineworld and Hill & Smith from the portfolio (both were moved from Buy to Hold in May after outperformance), to be replaced by CVS Group and Renold. We also give a brief update on the rationale for our picks."
Conviction List Q3 2017
By Panmure Gordon, 5 July
Gold Access
Aldermore | Avon Rubber | CareTech | GKN | Harvey Nash | Hutchison China Meditech | Informa | Nostrum Oil & Gas | On The Beach Group | Polymetal International | Senior | Sqs Software Quality Systems | St. James's Place
"Since its inception in 2010, the Panmure Gordon Conviction List has outperformed the market, returning 284% against a Small Companies index that would have returned 221% over the same period. Our Q3 portfolio reflects our belief that the global reflation trade runs into the stark reality of political deadlock in the US and intractable structural frictions in the Eurozone. Despite recent moves higher, low nominal fixed income spreads continue to provide a valuation underpin for global equities. There are increasing signs that Central Bankers are making a concerted effort to move off near zero interest rates. However with global debt exceeding 200% of GDP and unfavorable demographic trends, we think their chances of success are slim."
Tech Biweekly - Outperforming the market
By Stockdale, 7 July
Gold Access
Brave Bison | ECSC | Eu Supply | FDM | ProPhotonix | Quarto | Sprue Aegis | Sqs Software Quality Systems | Synectics
"With half the year behind us, we evaluate the performance of the tech sector versus the broader market, and look across the Atlantic to see how the London listed technology universe compares to its larger and better known counterparts. The UK tech sector has outperformed the broader UK market and the Nasdaq and S&P 500 over the past year. Last week saw another successful technology company listing- Ethernity Networks- demonstrating that there continues to be a strong appetite for quality tech companies in London."
Blancco Technology Group (BLTG)
Strong H2’17 offset by one-off £2.2m charge | Equity Development, 6 July
Free Access
"This morning’s pre-close trading statement was a bit of a curate’s egg. On the one hand, FY17 revenues soared 40% YoY (~30% constant currency) - in line with expectations – to an estimated £31.4m from £22.4m LY. The vast majority of this growth being organic, and reflecting buoyant demand for its proprietary data erasure software, augmented by the roll-out of its award-winning smartphone diagnostics product (Xcaliber) across up to 6,000 retail stores in North America."
7Digital (7DIG)
A step change with 24-7 deal | Edison, 4 July
Free Access
"7digital’s acquisition of 24-7 consolidates its position as the largest provider of B2B music services in Europe and adds £18m of secured revenues to its pipeline. Accelerated platform integration means EBITDA profitability will be pushed out to FY18, when management expects the deal to be significantly earnings enhancing and the group to be both profitable and cash flow positive."
Taptica International (TAP)
Making a great impression | finnCap 5 July
Gold Access
"Taptica offers a global end-to-end mobile advertising platform that helps the world's top brands reach their most valuable users with the widest range of traffic sources available. It utilises AI and machine learning to leverage proprietary big data for quality media targeting in high volumes. Cutting-edge algorithms assesses huge volumes of data in milliseconds, enabling global giants like Amazon, Disney, Facebook and Twitter to serve the right ad impressions, to exactly the right user, at exactly the right time – and at the right price – on mobile or social media channels. More than 600 clients are scaling and engaging more relevantly with mobile audiences, staying ahead of their competition. Headquartered in Israel, it is expanding globally: in the US, China, Korea and now the UK."
Blue Prism (PRSM)
UiPath Call | Whitman Howard, 3 July
Gold Access
"Blue Prism call with No3 player UiPath We had a call with Gary Kirkwood of UiPath. UiPath have recently raised $30m on we believe a $80m pre money valuation, with Accel Partners leading the round. UiPath has recently moved its HQ to the US and is intending to IPO on NASDAQ in 2019/2020"
On The Beach Group (OTB)
Sanguine over Summer Lull | Panmure Gordon, 5 July
Gold Access
"A six month reporting gap leaves scope for macro concerns to fill the news vacuum. June, traditionally the weakest month for travel sector equities, has seen OTB shares level off following a stellar 40% YTD run. We would view any summer share price drift ahead of prelims (30 November) as an opportunity to buy into this structural growth story. We remain sanguine for the following reasons: 1) robust passenger data, 2) post-terrorism normalisation, 3) c70% pre-booked peak trading, and 4) benign H2 marketing comp."
