There is no easy answer, but have a set of rules, follow those rules and learn how to switch off the phone/tablet/pc and do something outside, or sleep, or spend time with loved ones. I wrote a longer piece earlier, and since had more things go through the capital sell criteria, obviously being nearly 7pm too late to do anything today. Currently trading at a P/B ratio of 0.15x, whilst the bigger banks are at 0.5x+, I reckon they could easily double, and will still be undervalued at 0.3x P/B. They have the benefit of a huge current account funding base, where they pay close to 0% interest. They were targeting only Q1 2023 for profitability, but I reckon they can now achieve it in Q4. The surge in borrowing costs is a bonanza for them. In the case of Metro Bank, its whole future hinges on rising Net Interest Margin (the difference between cost of funds and what it charges on loans). No idea if LDI is impacting them, but they have been planning to sell it for a while, and with the rising gilt yields, they could probably get a good windfall from selling it now. Which was already in acturial surplus, and in Dec they had switched out of "risky" assets to safe assets. In the case of LPA, my investment thesis is that they have a hidden asset - their DB Pension Fund. You could say both are risky bets one is an AIM tiddler and the other is a basket-case bank who hasn't been able to turn a profit and has taken the "branches are good" strategy. Just picked up some LPA (LON:LPA) yesterday and Metro Bank (LON:MTRO) today. It's when the night is darkest where the best opportunities are! I love writing a daily report for on most weekday mornings, constantly researching daily results & trading updates for small caps. A miserable, wilderness period occurred from 2008-2012.Since then, the sun has begun to shine again! I am now utterly briliant again, and immerse myself in small caps, and am a walking encyclopedia on the subject. I made millions, but got too cocky, and lost the lot in 2008, due to excessive gearing. I trained as an accountant with a Top 5 firm, but that was so boring that I spent too much time in the 1990s being a disco bunny, and busting moves on the dancefloor, and chilling out with mates back at either my house or theirs, and having a lot of fun!Then spent 8 years as FD for a ladieswear retail chain called "Pilot", leaving on great terms in 2002 - having been a key player in growing the business 10 fold. If the truth be told, I partied pretty hard at the weekends too, so bank reconciliations on Monday mornings were more luck than judgement!! But they were always correct.I got bored with that and decided to become a professional small caps investor in 2002. Iomart (LON:IOM) (£161m) - a profit warning here as the current financial year is likely to come in “at the lower end of the Board’s… They tend to drift back down gradually, after spikes up in price, so probably no immediate rush to buy back in. The shares look stunningly cheap to me, pity I wasn't able to hang on to mine. Broker forecasts have been raised several times. Online is growing nicely, in fact all channels are, but growth has slowed in recent months, as I would expect. This share looks incredibly cheap, largely backed by net cash, and trading encouragingly well, with its multi-channel glamorous but cheap product offering, which achieves high gross margins. Quiz (LON:QUIZ) - a smashing trading update from yesterday. Sounds very interesting! Also there's a positive-sounding trading update, with H1 in line with mgt exps, but well over half the full year forecast revenues are now in the bag, so looks like a beat against forecasts could be in the pipeline for FY 3/2023. Intercede (LON:IGP) - also from yesterday, there's an interesting acquisition - a tiny business called Authlogics, which is said to have specialist IP which will enable IGP to increase its addressable market by tenfold, filling a gap in the product suite. Overall, I like it a lot for the potential, and think that the current valuation seems about right. Outlook comments confirm confidence in achieving FY 6/2023 market expectations, although additional growth beyond that might take time to nail the contracts. Balance sheet is strong, after a £15m fundraise in April 2022. It's modestly profitable, but share option costs consume most of the underlying profits. This share is all about very rapid organic growth (revenues up 57%), mostly recurring. Agendaīeeks Financial Cloud (LON:BKS) (I hold) - written up last night, I review the contract wins announcement (helpful but not massive), and more importantly, the FY 6/2022 results. However, we've not forgotten about several other items, which we'll cover tomorrow. Today's report is now finished, as we've covered 6 companies, and don't want to overwhelm you.
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