MAO3 (Part 1) 13 May 2014 12:48
Matthew,
It’s great to hear from you again.
Yeah there’s so many IPOs at the moment and the IPO market is so over-heated that I’d be very wary of buying into a company that has just floated on the market on the first day of dealing. However if you can be apply for some shares in Saga at the IPO price then that’s different and I reckon that could pay off nicely (although I have to admit I know nothing about Saga).
If you’d like some share tips I have a few I’d recommend to you:
1) SFE – SafeStyle is a British company that provides PVCu double glazed windows, doors, French doors, patio and sliding doors. They operate in a crowded market place but they can provide double glazed windows etc cheaper than their peers and, because of this competitive advantage, their market share is growing year on year. For this reason it’s the exact sort of share Warren Buffett would go for and hold indefinitely, especially considering that it’s currently trading 25% below what I’d consider to be fair value for it and pays a dividend. Both the Investors Chronicle and Shares mag have tipped it recently.
2) SYQ – SyQic provides video on demand to mobile and tablet devices. It is a very fast growing and profitable company that is essentially like a Netflix for Asian television shows. It floated on AIM in early December without any hype and I think that is the reason it is currently so cheap – trading at almost half of what I would consider fair value for it (144p). Even if you don’t invest in SYQ, at the very least I strongly recommend you read this article that was written when the share price was 60-65p and my comments below the article to see why I’m so bullish here: http://www.theel1tetrader.com/2014/01/syqic-pay-tv-on-go.html PS – the 2013 financial results will be released on Thursday 15th May.
3) BMN – Bushveld Minerals is a South African diversified mining company and my favourite company on AIM, and I don’t even like mining companies. I can’t tell you what the fair value is because I’m only capable of fundamentally analysing profitable companies but I can assure you that it’s unbelievably undervalued. It has four projects at present: Iron, Tin, Vanadium, and Coal. Based on the fact it has almost 1bn tons of iron it’s hugely undervalued based on that one project alone, before you then take into account 1) it is the only tin miner on AIM, tin is worth lots and Bushveld are close to production. 2) that Bushveld have the 3rd largest vanadium resource in the world and vanadium is worth a fortune. 3) that Bushveld’s only real weakness – a lack of money – is being addressed by finding strategic partners and that Bushveld have signed a MoU with a massive chinese company (CREC 10). Providing CREC become a strategic partner the value of Bushveld will rocket but, regardless of that, Bushveld is worth far mor
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