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OVOCA GOLD – Biggest discount to liquid assets on AIM?

Ovoca Gold caught my eye recently when I was cruising for new stock ideas. I came across Ovoca through applying a filter Enterprise Value < 50% Market Capitalisation (MC). Enterprise Value (EV) looks at Market Capitalisation and then adds debt and subtracts cash. EV is therefore the true market value of a business. An EV 50% lower than MC normally implies a company without debt and holding a large balance of cash…

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Fund Idea – BlackRock World Mining Trust

I have two trading accounts with two strategies. My non ISA account, i.e. the account not protected by an ISA wrapper is the one I use typically for buying ETFs and trusts. My view here is long term, I don’t want to be trading in and out of these vehicles generating capital gains. I’ll therefore only sell if I have really lost confidence in the manager or the sector…

AIM – 20 years of poor returns

This summer has been a good one for many penny stock pickers on AIM. Some of the recent success stories include Cloudtag (CTAG), which has delivered 760% YTD, Sirius Minerals (SXX) 128% and Canadian Overseas Petroleum (COPL) 442%. So is AIM really delivering astronomical growth for investors or are these outliers?

EVR Holdings aka Melody VR. Time to get exposure to VR?

EVR Holdings recently completed its reverse takeover of melody VR, a music virtual reality content provider. The IPO valued Melody VR at £5.12m. The Melody VR 2015 Accounts showed that shareholders invested just £158,000 to the year ended 31st December 2015, so the RTO gave shareholders of Melody upto a 35x return on their intial capital. The share price has since raced ahead to 3p which capitalises the company at around £34 million…

Berkeley Energia – Atomic rise set to continue?

Berkeley Energia the company focused on bringing its flagship Salamanca Uranium Project in Western Spain into production has enjoyed a cracking 12 months. The shares have increased 122% during the period capitalising the company at £88m at 48p a share. However with Uranium prices cratering to a 11 year low to $24.4 per lb, is it really a good time to develop an Uranium mine?

Sports Direct – A Bargain Basement Price for Investors?

Sports Direct, the stock ’em high sell ’em cheap sports retailer has lost 60% of its value since in just one year and it cannot have escaped your notice that it has been routinely lambasted by politicians, regulators and shareholders alike over the same period. Today the shares trade around 300p, this capitalises the company at £1.8bn, with only modest net debt the Enterprise Value is around the same level. So with the shares trading on a forward P/E of 11, has all the downside been priced in already?

Fundamental Investing – 10 commandments

I’ve been investing in the stock market for a decade now and in most years I have been beaten the FTSE100 by some margin. You can take a look at my more recent performance in the ‘My Trades’ section of my site. I get a few emails asking for my approach. There is no universally accepted way to invest, otherwise we would all be millionaires. Here though are the 10 rules I stick to religiously, which have served me well…

Electra Private Equity – Strategic Review due soon. Is it a buy?

Private Equity (PE) is not quite the sexy sector it was a few years ago, but I would recommend all investors try and allocate some of their portfolio to PE money. The IPO market thanks to a bit of stability recently started to pick up again in H2 2016 after a quiet first half of the year. This means that a number of private equity houses may start looking to exit their investments and return money to shareholders…

San Leon – 19% dividend yield. Too good to be true?

I’ve been meaning to cover the return of San Leon for a while and today I’ve finally got around to it. Late in August San Leon return from suspension with the announcement of a deal in Nigeria and connected equity placing to the tune of £170m, at 45p a share. The shares today are trading just below the placing price at 44.62p, this gives an Enterprise value of around £195m, so is there plenty of value to be had here?

Sepura – Good news, Henderson increase their stake.

Yesterday I tipped Sepura as a speculative buy here, that being despite a turbulent year where it managed to destroy 95% of shareholder value. Those brave investors though who agreed with my view yesterday and bought in could have already turned around a 10% gain. I am always nervous though about these more riskier trades, but I was very relieved this afternoon to see Henderson notifying Sepura that they had increased their stake from 15.89% to 18.37%. Does this helps to derisk the trade towards my target of 20p?

Sepura – Drops off a cliff. Is it still investment grade?

Sepura, a ‘global leader in the design, manufacture and supply of digital radio products, systems and applications developed specifically for business and mission critical communications’ is down almost 95% from the end of March 2016. Today’s market capitalisation is £50m at 14p per share. This is an almighty value destruction, this article looks at whether there is still value in Sepura at this price. So should you be bottom fishing or steering well clear?

CloudTag – up over 500% in 2016, are investors heads in the cloud?

CloudTag is probably one of the most promoted stocks among private investors at the moment, particularly on Twitter. The company has seen a meteoric rise from the start of January 2016, rising from 2.5p to 11.75p as of writing, valuing it today at £44.2m. It is always pleasing to see private investors doing well, but should they now be thinking about selling at these levels?

Screening Pre Revenue Companies

Valuing some pre-revenue companies can be extremely difficult, particularly those in Tech and other new industries. The core issue is that a lot of smaller pre-revenue companies are not in a place where they can give reliable earnings guidance or NPVs (Present value of future cashflows generated from the company). It is therefore necessary to use a screening tool to quickly filter the potential cash cows from the dogs…