Investor's Champion

A broker research note suggesting a target price of 500p and market capitalisation of over £320m for this business surely fails to reflect commercial reality!

Results for the period from 1st July 2008 to 31st May 2009 highlight the shift in strategy to agricultural sector and huge opportunity in central and southern Africa.

Following the earlier flotations of dispute investors Burford Capital (AIM:BUR) and Juridica (AIM:JIL),  Alvaro plc a litigation funding firm, is set to join AIM later this month.

It was reported in yesterday’s Financial Times that the aircraft parts wholesaler that went into administration last week has received 25 expressions of interest from potential buyers. Let’s hope the administrators don’t have to spend too much time and money exploring all the various approaches!

The trading update from the AIM quoted manufacturer of steel wheels and undercarriages for the off-highway vehicles market was, in the context of previous updates, somewhat uneventful, with no big surprises. With two big industry shareholders, it remains an interesting one to follow

The central and southern African agricultural company announced a conditional placing of 63.9m new ordinary shares to both new and existing shareholders to raise £3.2m.
The funds are being raised to expand its subsidiary’s cattle ranching and feedlot production business in sub-Saharan Africa to meet the growing demand for beef in the area.

The AIM quoted infrastructure services company, announced its appointment as preferred bidder for North Somerset Council’s recycling, waste collection and Household Waste Recycling Centres (HWRCs) contracts…

The specialist steel products engineering group, encouraged the market with the announcement of the refinancing of its bank borrowings

We have cast an initial glance at West Sussex-based Judges Scientific PLC (AIM: JDG) who recently reported very encouraging interim results to 30th June 2009

Solid first half performance with excellent cash generation. The business of old is a distant memory and the acquisition of GVT in Brazil would gain entry into high growth market

Agriterra’s investment in Mozambique agriculture looks to follow a low risk cash generative model and is a genuine socially responsible investment opportunity that looks to be creating wealth amongst the agricultural community in Africa.

The overall outlook appears to be stabilizing but the valuation looks somewhat stretched and what’s the long term plan?

Straight could be a big beneficiary of the Government agency WRAP’s (Waste Reduction Awards Program) decision to withdraw from the English home composting bin market. Interim results will be announced on 29th September.

The fund raising is out of the way and the balance sheet in much better shape. The group has a material presence in professional markets and strong portfolio of key publications.

A large requirement is developing for all food-producing farm animals to be traceable which National Milk Records is one of the best placed to fulfil. This little company fills a vital niche and has growth opportunities.

Update to our earlier commentary published on 30th June 2009

A fantastic track record, solid strategy and conservative financials. Probably the biggest issue is the likely impact on earnings from reducing the fleet.

Shares in the recycling products and services group have had a good run since the beginning of 2009 reflecting the cash generative attributes of the business, its attractive dividend yield and strong market position.  The AGM statement on 1st June confirmed that it was confident of meeting half year expectations with the strong trading performance in the fourth quarter of 2008 having continued into the start of 2009. 

Trading in line but tough times ahead; the acquisition looks pricey but stripping out the cash Hunting shares appear decent value.

The pre-close trading update for the financial year ending 31st March 2009 was actually quite promising, relative to what many appeared to be expecting anyway, and if there is a hedge fund business that will emerge stronger from the ordeal of the past few months MAN surely looks well placed to be that business.

Preliminary results were surprisingly positive, cash is flowing, debt looks manageable and visibility is good for 2009. But there is no dividend and when can shareholders really hope to start reaping any real rewards - other than those that made 100% on the share price move this week!

Focus will be on cash generation and the termination of contract negotiations with major airline is a positive in my book. With strong asset backing (albeit stock), a decent shareholder register, top up funds recently raised and debt likely to fall it looks worthy of further analysis - even the liquidity is reasonable fro AIM! 

Margins up, strong cash generation and yielding over 5% but many remain concerned about weakness in key UK legal market

A decent set of numbers for 2008 and even the dividend was maintained (c8% yield) but all eyes are on 2009 and the potential downturn in certain key markets

Management appears to have delivered up to now – who would bet against them doing it again!

Decent results from Albemarle, but if you want exposure to the pawnbroking sector, and can invest outside AIM, seemingly much better value can be found in principal shareholder, Nasdaq quoted EZCORP

Former dissident shareholders have conveniently gained appointment to the board and are overseeing the stratetegic review. Have the lunatics now taken over the asylum?

Encouraging interim results from this rapidly expanding and increasingly diverse group. You now get coal, coke, rubber recycling, bulk haulage, renewable energy, engineering and a canal barge fleet with this one!

Appears inherently resilient and, despite the higher debt compared with past years, also financially sound

Expected fall in funds management but new institutional mandate is encouraging & dividend is safe, for now.

It’s far from out of the woods but the AGM statement and a strong Euro brings hope to the caravan retailer. The doubt remains - a ten bagger or debt laden disaster?

The snowy conditions suggest that crash repair companies are worth assessing – especially if they come with a 6% yield and decent cash generation!

The trading update appears to have caught many by surprise – should it have? The valuation is at rock bottom, financial position looks strong and product offering looks compelling. Worth a look?

It’s consistently delivered for so long that trading updates are always a tense affair – but why worry, JHD always delivers!

An AIM float over the Chritsmas period - no, you aren’t seeing things!
Wey Bridging is a short term lender to experienced residential property developers within the M25 who are in need of short term finance and quickly!  All loans are asset backed and apparently the company has never had a bad debt. An interesting story, read on…

The order book might look good and further contract wins encouraging but cash outflow is now a major issue and it’s hard to gauge how this business can continue to trade (and grow) as it has been unless there is a material improvement in cash collection..

The shares soared this week following the departure of management and some broker support. Was this share price surge warranted and is this still a buying opportunity; the Champion comments! 

Performance has been excellent up to now and the valuation looks cheap, but debt has increased, and the ghost of Inter Link Foods still haunts. It’s also unclear how they will perform in a recession.

More detail needed please, especially on the finances

Since issuing a damning commentary on 12th Sept, recent dramatic falls in the share price and avid Director buying has compelled us to have yet another look – we still aren’t sure!

Fantastic results, great cash flow and loads of visibility – just look out for any contract muck ups!

Cash rich but currently looks a one product company with c60 day visibility - management are intent on expanding by acquisition.

The news isn’t good but much as expected – a ten year ten bagger or debt laden disaster?

The interim results were fine, it’s the short term outlook that doesn’t look so good!

The Chairman resigns and investors are spooked, but then comes a very positive trading update - business as usual!

Investor’s Champion warned you back in March 2007, and again in July 2007, again in 28th Sept, again…...
We even highlighted the cash problems at the end of April 2008- we hope you took note!
In the current climate, if they don’t get to grips with the cash management the shares could fall a lot further.
We see no evidence that the board has what is takes to sort things out!

The shares look cheap but for good reason!

Full year results looked good but need to be at the current rating. Nevertheless, Hamworthy is the leader in the Clubhouse (US Open this week!) of the Investor’s Champion Small Cap Scoreboard, overtaking CVS Group and Inspace, with the latter having been acquired.

Operator and developer of power plants in India – yes, another one!
Market capitalisation cUS$200m (pre new money)
Raising US$100m – sound familiar!