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 Chaarat Gold Holdings and Byotrol. Read about these Opportunities 4 Material Gains!
Mid-week Tip Wednesday 11th August
Chaarat Gold Holdings (LSE: CGH) who operate a gold mine in Kapan Armenia with assets at various stages of development in the Kyrgyz Republic. The recent Trading update seemed to have stimulated Directors into buying £560,000 worth of shares at 22p. The 4.6% production reduction at the mine in Kapan to 25,896 oz gold equivalent was mitigated by slight reduced in the cost of production at $1,063 oz. There was also a significant increased on third-party ore production to 70kt against zero. The realised gold price for the quarter was 7% higher at $1,783. This gives a strong financial performance with preliminary unaudited EBITDA contribution of $13.5m which is up 229% for the first half to announced in September. Earlier this year a $52m funding with shares and a £20m Loan conversion was concluded at 26p. The delayed mine debt finance could soon be in place. Speculative Buy.
Results Preview 16th August
Byotrol (LSE: BYOT) is a specialist infection prevention and control company. It provides low toxicity and non-alcohol-based products with a broad-based and targeted efficacy across all microbial classes; bacteria, viruses (including coronavirus), fungi, moulds, mycobacteria and algae. Its reporting finals to March 2021 this Thursday and Aprils Trading update expect sales to be substantially ahead and could nearly double. The shares on Covid assisted ‘punter/ investing’ have been up to 10pyotrol is on course to report a leap from last year’s PBT of £0.33m on revenues of £6m to £1.5m PBT on £11m this would give a P/E of 19x. Based on modest revenue growth as the Covid sales surge recedes next year’s earning (2021-22) are expected to be improved economies of scale and EPS to grow by 23% to 0.39p a giving a prospective P/E of 15x.Still attractive when it returns to a new normal growth, but short-term share price volatility may give some lower priced buying opportunities.
Reviews from 16th July
Advanced Oncotherapy (LSE: AVO)
Empresaria (LSE: EMR
Immupharma (LSE IMM)
Northbridge Industrial Services (LSE: NBI).
Lok’nStore (LSE: LOK)
Checkit (LSE: CKT)
Minds + Machines (LSE: MMX)
Eleco (LSE: ELCO)
Finally Enjoy the summer break
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