Wed 2 July 2025 - Paul Scott's Small/Mid Cap Value Report

Alun's Snapshot at 07:45. Starters: SXS, BYIT, WIZZ, AVCT, SBAR, EMR Mains: SSPG, TPT, CPI, GRG

Good morning from the 4 of us - Paul, Dave, Jon, and Alun!

Jon’s Substack

For any of you that are not aware of Jon’s Substack and his monthly upgrades and bowls posts, here is a link to his last July Monthly Upgrades post from yesterday, well worth a read once a month.

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Reader Vote

Scores on the doors - very clear preferences here!

We’ll cover the top 3 by lunchtime, the team are on the case! Top 3 done now, at 11:17.

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Usual placeholder article here for your reader comments. Then our email goes out with Alun’s Snapshot, and v1 of our summary table, at c.07:50, so you’re prepared for whatever the market throws at us. We saw a bunch of profit warnings yesterday (KITW, MPAC, and WHPO), and with global macro turmoil, I suspect there are probably more to come.

Can companies with lumpy order books keep the new orders rolling in, when customers are reluctant to commit to investment? (MPAC). Can labour-intensive companies really absorb or mitigate the big increases in UK labour costs that have recently kicked in? Or will their forecasting turn out to have been over-confident (KITW)? It’s so difficult to pick the winners from the losers, and I’m afraid small cap investing always involves the occasional profit warning, you can’t completely avoid them because many are unpredictable.

Still, we’ve enjoyed a fabulous rally from the spring lows, so overall I don’t think we have much to complain about! Plus there are likely to be many more takeover bids, I imagine.

End of free section.

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