OMG! Tuesday 15 June: Summary of last week’s newsletter

Share On Facebook
share on Linkedin
Print

Mid-week Tip Wednesday 9th May

©

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 Cizzle Biotechnology and SysGroup. Read about these Opportunities 4 Material Gains!

Cizzle Biotechnology (LSE:CIZ) is a spin out from the University of York, which still owns 3.14%, and in May it reversed into standard list shell Bould Opportunities. The University of Leeds and University of Sheffield each owns 4.26% of the enlarged company, while Yorkshire Cancer Research owns 12.4% and Finance Yorkshire 9.36%. Cizzle is developing a test that could make diagnosing lung cancer more accurate by preventing false positives. Eliminating these false positives will reduce the worry for patients and save money. There is already a prototype, but there is still work to do on validating the test. The potential is enormous, and the valuation is modest. If the test costs £200, the annual sales potential in the UK would be more than £20m, but that would save more than £60m of NHS spending after paying for the tests. The US market could be worth more than $100m. Prior to the reversal £2.2m was raised and some of that will cover the expenses of the reversal. Pro forma cash was £1.89m at the time of the reversal. There could be around £400,000 left at the end of 2022, but a cash call will probably have happened by then. 6.88p (6.75p/7p) Mkt Cap: £17.4m Long term buy.

 

Results Preview 14th  June 

SysGroup (LSE:SYS) 46.5p (45-47p) The Pre- Finals Trading Update reported that Revenue for the year is expected to be approximately 7% lower at £18m but conversely, adjusted EBITDA is expected to be 3% higher a £2.9m which is ahead of earlier  expectations.  These potentially resilient results reflect acquisition synergies coupled with some tight management cost control. The interims to September 2020 reported increased reoccurring income to 83% of its £9m revenue.  Its EBITDA increased 19% to £1.4m with its adjusted PBT increasing 50% to just under £1m.  The Board includes Michael Edelson as Chairman, who can help make deals happened. He has been involved in growing several businesses and has been on the Manchester United Board since 1982.  There are four decent institutions holding around 60% between them, including Gresham House with 28% and Herald with 7%.The net cash is likely to be around £1.5m. Also undraw loan total facilities of £5.0m are available expiring in 2024 from Santander giving  immediate access to draw down against acquisition with a revolving credit facility.  A significant acquisition could be funded……

 

Reviews from  8st June

AVO – 36.5p  – Order Pipeline

IRR – 18.9p – Divide and Rule

TGP – 48p – Pass Challenges

RDT – 5.1p- Niche to Bigger

BLV – 246.5p – Nottingham purchase

DEST – 150.5p – Positive test results

CNIC – 84.6p – Organic growth

CRU – 14.25p – Back to profit

RNWH – 641p – Electric acquisition

DNL -69.3p – Milestone payment

 

Finally

UK Markets should be phlegmatic now  the next stage of unlocking is delayed a month.

 

OMG!  Opportunity for Massive Gains is a Premium Newsletter on ADVFN with two reports each week written by experienced small cap specialist. To get trips like this every week, sign up here.

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20211207 16:43:48