Small Cap Value Report (Fri 25 Nov 2022) - MOTR, SCE, VID, De-listings, SCS, DVO, FCAP, LSL
Good morning! It's just Paul here today, as it's Friday. I prepared some stuff last night, so we're off to a flying start! Today's report is now finished. Have a smashing weekend! I'll be podcasting as usual tomorrow, with my weekly summary.
Agenda
Paul’s Section:
Motorpoint (LON:MOTR) [quick comment] - H1 results (to 9/2022) came out yesterday. Revenues rose a lot, but volumes (vehicles sold) were actually down. Profit has dropped, so it’s trading barely above breakeven now. Conventional car dealership chains have been making a fortune during this period of restricted supply (hence much higher prices), whereas MOTR has barely scraped into a tiny profit for H1. That does call into question its business model. Maybe people prefer buying from a conventional dealer? I’m less convinced by MOTR shares than I was in the past, due to this collapse in profitability. It dangles the prospect of future profits in front of us, on higher revenues amp; market share, but there's not much to go on in terms of valuation now. So it's become a bit more speculative than in the past.Surface Transforms (LON:SCE) [quick comment] - rose 10% yesterday, on a big contract win (£100m over 6...