OMG! Tuesday 8 June: Summary of last week’s newsletter

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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 Petards Group and Driver Group. Read about these Opportunities 4 Material Gains!

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Mid-week Tip Wednesday 2nd May

Petards Group (LSE: PET) were formerly part of Vickers and are a  long established- developer of advanced security and surveillance systems initially for rail but increasingly for traffic, and defence systems.  The last few years let alone the last year, have been either challenging to extremely challenging as new products and ‘complex’ markets are developed. Its diversification into transport security and surveillance systems helped by astute product acquisitions has been successful and is becoming a  significant profit and cash flow contributor. The Board believes that both have significant potential for organic growth; QRO Solutions and RTS Solutions each had a good year with QRO producing its best performance in its history and RTS securing a 4-year renewal of a significant support contract and with the potential for renewing others in the current year and so providing revenue visibility. 11.5p (11-12p) Mkt Cap £7m a buy.

 

Results Preview 7th  June 

Driver Group (AIM: DRV) we previewed a couple of weeks ago and the interims are on Tuesday. The price is unchanged at 49p at this global professional multi-disciplinary consultancy services business including claims, expert witness and dispute resolution services which could become busier coming out of Covid.  Interims to March will be reported in early June and the Trading Update claimed the performance was comparatively credible due to swiftly adapting operations to Covid so that PBT may only slightly lower than last year’s £1.2m. Driver business development plans is to increase the proportion of sales represented by higher margin expert assignments by focusing efforts and  recruitment of key talent to enhance its technical and geographical service offering.  Consequently, reducing the share of Group revenue derived from lower margin project services.  The cash positions in strong with net cash of £7.2m and bank facilities of a further £7m so well-funded for organic and acquisitive expansion. The growth prospects seem undervalued as high operational leverage could surprise worth buying.

 

Reviews from  1st June

CYAN – 9.1p  – Roll-out Finance in Place

SBTX – 68p – Successful psoraisis study

KETL – 297p – Another upgrade

BLV – 249p – Booming housing and financial business

IOF – 13.5p – Iodine prices increasing

DNL – 69p – EC approval for Efmody

GHS – 1475p – Internal squabbling  

 

Finally

US Inflation may stimulate portfolio switching .

 

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