Thu 24 Apr 2025 - Paul Scott's Small/Mid Cap Value Report

Alun's Snapshot up at 07:52. Mains: SFR, SNR, GBG, SAG, JUP, SOM, RWS, TRCS

Good morning from Paul, Dave, Jon, and Alun!

We’re building up sections below, but I haven’t got time to update the summary table before doing my 2pm slot with Paul Hill, so that will have to wait until later today.

Warning - several subscribers have alerted me to fake messages they have received impersonating me, recommending some dodgy-sounding trading strategy from someone called Taylor Nelson. Obviously I would never recommend anything like that, particularly from some semi-literate fool that has copied my personal details by the looks of it. So please ignore or report anything like that.

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My weekly roundup with Paul Hill is 2pm today (recording below) - here’s the link.

From Paul Hill -

#AGFX #TRCS #RWS #SOM #WOSG #BRCK #IBST #FORT #MBH #PAY #BOWL #CLBS #AOM #AOTI #NFC #SYS1 #MPE #RNO #SFR #GBG #W7L

In this week’s smallcap investing show, UK analyst & stock markets commentator Paul Scott & I discussed our latest thoughts, 21 ideas on the following:

• 00:00 Argentex & how to survive a lightning strike?

• 11:05 Tracsis

• 14:25 RWS

• 18:00 Somero Enterprises

• 22:10 Which UK firms might benefit from sky high US tariffs for Chinese goods?

• 23:20 Watches of Switzerland

• 25:40 Brickability, Ibstock, Forterra & Michelmersh Brick

• 29:25 Paypoint

• 32:25 4Imprint

• 34:30 Hollywood Bowl

• 37:20 Celebrus Technologies

• 40:55 Activeops

• 42:50 AOTI inc (REG-S)

• 45:40 Next 15

• 48:35 System1

• 51:15 MP Evans

• 53:15 Renold

• 56:55 Severfield

• 58:45 GB Group

• 62:20 Warpaint

Finally, if anyone or any company would like to sponsor this Smallcap Investing series (re naming rights), then please feel free to contact me here or via my email paulhill@pmhcapital.com .

Published by Vox Markets

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Tariff-free Import Scheme

Interesting press reports that Rachel Reeve is considering ending the current arrangements whereby parcels under £135 can be imported into the UK with no import duties.

This scheme has been criticised by UK retailers as unfair competition, allowing Shein and Temu in particular to air freight individual parcels into the UK at ludicrously low prices.

I’ve got mixed feelings about this. “Doing a TEMU haul” is good fun, allowing you to go into a frenzied shopping spree, accumulating discounts on discounts, with the overall damage ending up at only about £40 for a whole bag of assorted junk.

When the parcel arrives, it’s like lucky dip. Some items are good, others are fit only for landfill. I successfully built a shower hoop & curtain over my bath using Temu kit, for a total cost of about £60, and it works perfectly and looks nice too. Also their magnetic wooden poster hangers are terrific. Not so great purchases include a cushion cover that is supposed to look like a pastie, a baked beans hat, and various face coverings that are intended to make you look like a cat. Temu items are often smaller than you imagine, including some garden gnomes that are only big enough to use as cake decorations.

Is it better for consumers to be buying cheap products which Mum calls “Chinese crap that Paul’s bought for me from Temu”, or for us to have to pay 3x the price from UK retailers? Tricky one.

Also consider that I believe the Chinese are setting up distribution centres within the UK. My most recent Temu order said some items would be dispatched quickly from the UK, but they could be lying.

Possible UK beneficiaries if this ban happens? Boohoo could get a much-needed shot in the arm, I know they consider Shein competition to be unfair.

End of free section.

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