The OMG newsletter recommends at least 15 companies each month, using the writers’ experience of small caps to give you a winning edge. Last week they wrote about The Property Franchise Group and Microsaic Systems. Read about these Opportunities 4 Material Gains!
Wednesday Tip 27th April
The Property Franchise Group (LSE: TPFG) has shown its resilience over the past couple of years. First, it had to cope with the tenant fee ban and then the Covid-19 pandemic. The property lettings company made a record profit in 2020 and this year it will have the earnings enhancing purchase of rival Hunters to help to accelerate profit. This year revenues could reach £21.9m with Hunters contributing from late-March and the deal with LSL making an initial contribution. Pre-tax profit is expected to jump to £8.3m and earnings would be 35% higher at 22.4p a share. Full contributions from all operations could improve pre-tax profit to £9.1m.The shares are trading on less than ten times prospective 2021 earnings and a forecast yield of 4.7%.
Results Preview
Microsaic Systems (LSE: MSYS) 0.22p(0.23-024) Mkt Cap: £13.4mMicrosaic is reporting its finals to December 2020 on Tuesday but the post year end corporate and business events reduce the significance. After a ‘rescue fund raising and new management in March. As in January it raised £5m at a deeply discounted 0.1p and around 60% of the shares now held with Institutions such as Unicorn Asset Management with 12%, IS Partners 9.6% and Hargreaves 9.5%. Also two NED were appointed Gerard Brandon and Dr. Nigel Burton and are already making a positive impact.
Reviews 25th April
WSG – 4.2p- Long Covid recovery
FCCN – 20.5p- Creditor mercy
PEN – 45p – Much Improved
Reviews
SAR – 2.1p – Well Drugged up
AVCT – 233p – Covid-19 test potential
BYOT – 7p – Accelerating profitability
CER – 600p – Bumper order book
MNO – 15.75p – Strong fourth quarter expected
BBB – 121p – Selling Quickline
FLO – 116p – Restructuring yet to pay off
SOLI – 905p – Beating expectations
EAAS – 25p – Smart meter acquisition
ANCR – 282p – Canine pain treatment approval
DNL – 69p – Cash for phase 3 study
DEST – 157.5p – Chairman buying
Finally On Thursday, the BOE (Bank of England) is set to make an unchanged Interest Rate decision to leave it at 0.1%. There will be sensitivity to any change in indicators monitoring the inflationary pace of the recovery. Although employment prospects are set to be dominant policy as furlough job support scheme is withdrawn.
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