OMG! Tuesday 13 July: 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 Appreciate and Kromek. Read about these Opportunities 4 Material Gains!

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Mid-week Tip Wednesday 6th July 

The e latest figures from Appreciate (LSE:APPS) mark the start of a recovery in the performance of the corporate incentives business following an extended period of reorganisation. Formerly known as Park, Appreciate no longer supplies Christmas hampers and instead provides multi-retailer vouchers and gift cards to both consumers and corporates. ppreciate offers a Christmas savings service to consumers, which receive multi-retailer redemption cards and vouchers. Consumer billings are still the majority of the group total, but corporate is catching up. The corporate division provides incentive and reward products, for customers and staff, including vouchers, VIP experiences and travel deals. It is also involved in the free school meal scheme. There was £132.1m of money held in trust, relating to the Christmas savings. This used to generate substantial interest income, but not at a time of low interest rates. This could become a greater source of income in the longer-term. Revenues are set to decline from £106.8m to £97.4m, while pre-tax profit should improve to £6.5m. That means that the shares are trading on just over eleven times prospective earnings, which falls to eight the following year. 

 

Results Preview 11th July

Kromek (LSE:KMK)-Finals to April 2021 are reported on WednesdayIn March £13m was raised at 15p in an oversubscribed placing and open offer as the funds are needed to support its extensive commercial pipeline particularly in  the growing medical and nuclear markets. The Covid effected Interims in September reported lower revenue at £4.6m (£5.3m) with a loss before tax of £3.4m (£2.7m). The Gross Margins are 54% so given increased turnover and deducting increased development costs losses could start reducing sharply. The outbreak of the pandemic has exposed the world to the severity of biological threats and their potential impact on public health and the global economy and has demonstrated the need to rapidly evolve bio-security systems and associated technologies. The Placing should have provided sufficient funding to  cash flow positive and achieve operational profitability in 2023. Speculative Buy ahead of hopefully further ‘life-saving’  orders

 

Reviews from 04 July 

Reviews

Reviews

IRR – 22.3p – Becoming Two Mines

AUK – 1.6p- In play

DNL – 65.5p – UK authorisation 

AUTG – 22p – Small underlying profit

NFT – 25.5p – Cash being conserved with investments on the cards

QXT – 165p – Chairman buys

PCF – Investigation continues

 

Finally

Market may continue to drift until we are more clearly out of the Covid woods.

 

OMG!  Opportunity for Massive Gains is a Premium Newsletter on ADVFN with two reports each week written by experienced small cap specialist. To get trips like this every week, sign up here. 

 

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