OMG! Tuesday 18 May: 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 Tracsis, Sanderson Group and Nexus Infrastructure. Read about these Opportunities 4 Material Gains! 


Wednesday Tip 11th May

We tipped Tracsis (LSE: TRCS) 860p (850p/870p) Mkt Cap: £252m  as we anticipate that strong demand will continue  from the rail sector for  its software and consultancy service. Tracsis has a strong market position in the rail software and services market, but there is still growth potential as it helps rail companies to operate efficiently. If  Smart ticketing is the way forward  Tracsis owns smartTIS –– enabling combined rail and bus tickets and should benefit. Rail provides growth opportunities and the move into the bus sector is timely given the government’s greater focus on this area. The acquisition of transport consultancy Flash Forward will help to broaden the base of work. The shares are trading on 26 times prospective 2021-22 earnings not cheap but the shares are worth buying for the long-term.


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Sanderson Group (LSE:SDG) 152p (150-155p) The new team at the luxury interior design and furnishings group are rolling-out an attractive new strategy and there has been plenty of operational news flow. The better performance in both brand product sales and manufacturing has resulted in revenues being ahead of board expectations reported in the recent trading update and which, owing to the Group’s operational gearing and the cost savings already implemented, has translated largely into profit.  board is expecting PBT for Y/E January 2021, which is reported on Tuesday to be not less than £6.3m which would give a P/E of over 20x and no interim dividend was paid although a token final one could be announced. There is likely to be a fund raise and buyers in at 66p on our October ought to take a well earned  130% profit


Nexus Infrastructure plc (AIM: NEXS) 173p (170-176p) n June 2020 before reporting Covid battered finals to year 30th September the company raised £10m at 140p of which directors invested nearly £0.6m. Nexus is a leading provider of essential infrastructure services, utilities connections and smart energy infrastructure. Since then, the recovery has accelerated as the Trading update ahead of the interims to March 2021 to be reported on Thursday where ahead of the Board’s expectations . The net cash should be around £9m which should be sufficient to fund the planned growth. Although its growth is no-longer undervalued it is worth buying, but patience maybe required.


Reviews from 9th May

MSYS  – 0.24p – Expectant already

CRU – 14.75p – Dividend declared

NFC – 870p – Blueshirt stake buy

LSAI – 0.75p – Dilutive fundraising well-received by market

INFA – 29.5p – Another cash call

FEN – 53p – Profit as expected with bounce to come

JSG – 168.6p – Slow recovery



It is expected that UK Unemployment for March when announced on Tuesday is set to increase from 4.3% and inflation reported on Wednesday is also set to raise to above 2%. The post Covid picture of the normal rate of growth for policy setting KPIs is still obscured and the forward lens has a darker dusting from  the Indian Covid variant.


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