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Charles Breese writes: http://www.proactiveinvestors.co.uk/columns/smartco-select/25528/selling-and-creating-the-crown-jewels-25528.html "AIM listed Omega Diagnostics recently released its final results to March 2016 - its business is developing and marketing assays for the Allergy and Autoimmune, Food Intolerance, and Infectious Disease sectors. The architect of the company is David Evans, a leading UK developer of healthcare diagnostic companies - he played a key role in the development of DxS leading to its acquisition by Qiagen. I have followed (and become a shareholder in) Omega following its reversal into an AIM listed company in September 2006 - its sales were then only £2 million, but it had a distribution network covering over 100 countries, which meant that Omega could acquire businesses which were predominantly selling in their home countries and resource efficiently enable them to expand internationally. Since 2006, Omega has made several acquisitions. The results to March 2016 showed sales of £12.7 million and adjusted operating profit of £971,000, with Food Intolerance being the prime driver of organic growth with sales of £7.1 million and the sales of the other two divisions being split c.50/50. What makes the company interesting is that this profitable business has been undertaking two developments each of which has the potential to deliver transformational growth, namely: IDS/Allersys In 2010, the German allergy business, Allergopharma, was acquired from Merck - its sales were based entirely on manual assays. However, in order to significantly expand the business both within Germany and internationally, it was necessary for the assays to be able to be used on automated instruments. Accordingly, a contract was signed with AIM listed Immunodiagnostic Systems (IDS) for exclusive use of the IDS-iSYS automated instrument worldwide within the allergy market - the development of the initial menu of 41 allergen assays for use on the instrument has been technically challenging, but discussions are now at an advanced stage to achieve sales in 2016/17 via IDS and its marketing partners. Visitect CD4 In June 2012, Omega acquired exclusive access to two point-of-care tests (one for CD4 and the other for Syphilis) developed by the Burnet Institute in Australia - testing for the number of CD4 T-cells is a vital component for the management and care of people suffering from HIV and is required to determine when HIV patients should commence antiretroviral treatment - again the technical challenges encountered have been significant but considerable progress has been made, albeit that the commercialisation timetable is behind that for IDS/Allersys. The product has been developed so as to be economic for use in less developed countries, where there is a signicant HIV population. My holy grail of SMARTCO investing is to find profitable companies on reasonable valuations und

Finncap's brief update this morning confirms that today's revenue figure of $126.5m is ahead of their expectations, which were $125.3m and have evidently been increased since their January note. Forecasts will be reassessed after the H1 results, but there is upside potential from organic wins and acquisitions. The group has $10m net cash and is cash-generative. They "believe that the current low ratings of 8.4x PER and 3.6x EV/EBITDA in FY2016E significantly undervalue the growth potential in the defensive $37bn US medical billings market and the value-creation potential from Constellations model and strategy."

Up again...and good to see both the independent analysts covering SCH being positive, with both Canaccord and Numis saying Buy. Numis have a 350p target and Canaccord go for 320p: Http://www.consumereagle.com/how-analysts-feel-about-safecharge-international-group-ltd-lonsch/28616/

Apparently the prelim results will be released tomorrow. SDI have already confirmed they will meet expectations of 1.5p EPS and a £0.8m PBT. Good to see the price move up 0.5p already today on a 5k buy.....

Unusually large transactions yesterday - 200,000 were bought at 11p, plus 80k and 154k at 10.5p which I suspect were also buys from earlier in the day.

Six Flags last night announced "Additional Six Flags-Branded Parks Coming to China": Http://finance.yahoo.com/news/additional-six-flags-branded-parks-131900298.html "GRAND PRAIRIE, Texas--(BUSINESS WIRE)-- Six Flags Entertainment Corporation (SIX), the world’s largest regional theme park company, and Riverside Investment Group Co. Ltd., a leading real estate developer in China and existing partner of Six Flags, today announced the signing of a letter agreement for the potential development of a second Six Flags-branded theme park in China together with a water park. The two parks will be located in Bishan, a district of Chongqing, with a surrounding population of approximately 120 million people. “Developing two parks in Chongqing, the most populous municipality in China, is another step forward in executing our long-term strategy to expand our brand outside of North America and bring Six Flags thrills to millions of new guests,” said John Duffey, President and CEO. “Riverside is an excellent partner and we share a common vision to develop multiple Six Flags-branded parks in China.” “As the exclusive strategic partner of Six Flags in China, we are excited about the development of two parks in Chongqing of western China, the biggest city in the world,” said Li Zhe, chairman of the Riverside Investment Group. “With the ongoing support of the Chinese government and the strength of the Six Flags brand, we are confident these projects will provide strong economic growth in China.” etc"

Excellent trading statement this morning, with everything in line with Board expectations. The outturn for both H1 and the full year looks good. In particular, the RNS notes expected 2016 turnover of more than $126.5m, whereas Finncap's note of 4th January only forecast $121.3m: Http://www.investegate.co.uk/constellation-health--cht-/rns/trading-statement/201607210700077928E/ This could be a very good year indeed. A number of acquisitions are being evaluated too, plus organic growth is coming along nicely. With forecast EPS of 15.22p probably having to be increased 10%-15% on currency translation alone, CHT is imo at least 40%-50% undervalued and possibly a lot more than that given Finncap's 310p target.

Nice - £1,200 of net buys today is enough to send the share price up 1.5p (and close the published spread somewhat too). Online you can now sell 150,000 at 10.25p, and only buy a maximum 5,000 at 12p. Looking extremely encouraging.

Finncap today reiterate their 310p target for CHT: Http://www.consumereagle.com/finncap-reconfirmed-constellation-healthcare-technologies-inc-loncht-as-corporate-has-tp-of-gbx-310-00/28170/ I get the feeling that there will be a very sharp re-rating at some point, assuming CHT confirm that H1 is on track to meet market forecasts. Beneficial exchange rate movements (the weakening of the pound) are likely to ensure that that the thread header forecasts will be met at worst and could easily exceed forecasts at best on translation.

Techmarketview like IDEA's results: Http://www.techmarketview.com/ukhotviews/archive/2016/07/19/ideagen-rises-on-regulations-and-grc "Ideagen rises on regulations and GRC Rising demand for GRC capabilities produced another solid year for Ideagen, the provider of information management software to highly regulated industries, and highlights just how much the company has changed. Ideagen has pivoted from a healthcare-based business to a vertically diverse operation centred on GRC. Organised into two segments, GRC, and Content and Clinical, GRC generated 80% of the its revenue (£17.5m, 23% growth) in the year to April 30 2016. In contrast Content and Clinical saw a 20% drop in revenue to £4.4m due to stasis in acute trust spending. What that means at group level is that revenue jumped 52% to £21.9m, with a decent boost to the bottom line too: adjusted EBITDA up 57% to £6.3m. PBT came in at £1m vs. £608K. Acquisitions have expanded the business, but it is delivering organic growth - 10% - and that is down to its GRC offerings. In this rising but fragmented market providers able to offer a coherent set of enterprise-level solutions are set to do well. Under CEO David Hornsby the company is capitalising on these factors and from the steady increase in regulations such as ISO 13485 in aviation and ISO 45001 in Health and Safety. With a footprint across multiple verticals, of which transport (rail and aviation) appears to be doing particularly well, it has successfully diversified (see here) and put itself into a position to both grow with its markets and adjust to shifts within them. It is still predominantly an on-premise business (although recurring revenue totaled £11.5m last year). It has invested heavily in its SaaS Enlighten GRC platform and while it is growing fast, the percentage of SaaS revenue is estimated at sub 10% and the customer count is c20 of a total of c2200. SaaS recurring revenues are expected to start flowing over the next year however. With several arrows in its quiver Ideagen and further scope for growth."

Good news today, with group debt facilities being completely repaid "using surplus funds from day to day operations": Http://www.investegate.co.uk/constellation-health--cht-/rns/repayment-of-debt-facility/201607200700076667E/ And CHT still has $10m of placing funds to use for acquisitions. One could deduce that if cash flows are looking so healthy, then the upcoming H1 trading statement might read rather well.

Finncap has now increased its price target to 205p (from 185p): Http://www.risersandfallers.com/2016/07/19/somero-enterprises-inc-retained-as-corporate-by-finncap-2/ Extract: ""The group recently confirmed a strong end to its first half trading, and now expects trading for the full year to be ahead of expectations. Accordingly, we upgrade our 2016 EPS forecasts by 7.5% and in 2017 by 4%. With a strong second half expected from good momentum in underlying markets, plus better H2 cash generation, the shares continue to look great value. The shares look cheap and we continue to see strong upside over the next year." "Growth on track to 2x sales by 2018 - giving profit up 3x. China steady, new products spurring on demand - plenty of scope. Investment to scale up business continues. Rating looks too low, given the recent reassuring trading update."

Finncap have increased their target price to 65p (from 61p): Http://www.stockmarketwire.com/article/5381751/Broker-Forecast-finnCap-issues-a-broker-note-on-Ideagen.html Extract: ""Prelims reveal performance in line with unchanged expectations and the positive May trading update, highlighting 52% revenue growth, including 10% proforma organic, and an increase in recurring revenue to £11.5m, representing 53% of group revenue. The customer base need for Governance Risk and Compliance continues to increase, particularly but not exclusively in industries where the consequences of failure are high. With the development of the Ideagen product set and its progress towards a modular best-of-breed solution creating a unified view of risks across a corporation (public or private), Ideagen is well placed to continue to benefit as non-compliance with common standards becomes indefensible."

Interesting - 4.5m shares have just gone through. Perhaps clearance of an overhang. I bought some of these recently for the first time, having watched it for years and years. It's always been very overvalued imho, but now as a market leader it finally seems pretty undervalued, with extremely large upside if it can continue to thrive and recover as it seems to be doing. In particular, prospects for this year seem very solid given the high order books and visibility going forward. Forecasts are for 4.72p EPS this year and 5.78p EPS next year - with 1.7p and 1.9p dividends too, so an excellent divi yield as well.

Good to see a tick up today after some large share volumes going through. Finncap's forecast EPS per Paul Scott is 22.5c, i.e 17p EPS. With around 17p per share of cash, if you strip out that cash pile the adjusted P/E at 163p is still only 8.6 for the current year.

Moved up 7.5p today (on the spread) on a single 378 share buy....

Nice snippet from Unicorn AIM VCT's IMS just out this morning - they've invested £1.5m in SCE's placing: Http://www.investegate.co.uk/unicorn-aim-vct-plc--uav-/rns/voluntary-interim-management-statement/201607190848435726E/ "Surface Transforms (+7.8%) is a manufacturer of carbon-ceramic brake discs for specialist automotive and aircraft applications. Surface Transforms has developed its unique materials technology over more than a decade and built up an enviable reputation on racetracks and with niche supercar manufacturers. The brake discs manufactured by the business demonstrate significant advantages over competing products being lighter, stronger and able to maintain lower operating temperatures combined with lower wear rates. The effectiveness of the disc brakes is fully tested and proven and the business is now receiving substantial interest from several British and German performance car manufacturers. As a consequence, Surface Transforms needs to build additional capacity and has raised an additional £4.5 million to fund this expansion. Unicorn Aim VCT invested £1.5 million in this recently completed fundraising."

Nice 100k buy at 22p today reported late yesterday, plus two other buys of just over 40k each. Certainly keen accumulation going on

Mark Slater went above 3% here with 861,000 shares, so a pretty large investment. STAF was tipped as follows just before the weekend: Http://masterinvestor.co.uk/equities/small-cap-opportunities-post-brexit-world/?utm_source=Master+Investor&utm_campaign=21137dc860-Master_Investor_Daily_Bulletin7_15_2016&utm_medium=email&utm_term=0_25eff0bb7f-21137dc860-34898813 "Small Cap Opportunities in a Post-Brexit World" "Staffline Recruitment“ Not the time to be short of STAF A number of individual stocks have seen a battering of their share prices post Brexit. Notably, several recruitment companies have fared badly as investors have become concerned about a potential recession causing a recruitment freeze in the UK. To take the most dramatic example, shares in AIM listed Interquest (ITQ) have plunged by 46% on the back of a profits warning, caused by clients delaying hiring decisions in the run up to the referendum. Peer Staffline (STAF) has also been caught up in the malaise, with the shares down by 36%. But in contrast to Interquest, Staffline has been performing well and I see a potential value opportunity on the back of the recent sell off. Staffline is a recruitment and staffing services company which made revenues of £702 million in the last financial year and supplies around 45,000 workers every day to more than 1,300 clients. The company operates via two divisions, Staffing Services focusses on supplying workers to industries such as agriculture, manufacturing and food processing. Secondly, the Employability division provides training and support services, along with a number of a government contracts, including the Welfare to Work programme. The company is currently in the fourth year of a five year plan to, in its own words, Burst the Billion, or to grow revenues to over £1 billion by the 2017 financial year. A trading update released on 5th July reported excellent progress in the first half of 2016 with trading in line with expectations. Perhaps the main sentence to note in the statement was, Furthermore, to date, there has been no change in demand following the recent EU referendum vote and the Group continues to source record numbers of workers to supply this demand. The key point with Staffline is that it focusses on the provision of temporary workers. During times of economic uncertainty the demand for temporary labour tends to rise as employers put off hiring people on full time contracts. In addition, much of the business is focussed on getting jobs for the long-term unemployed via the government's Work Programme. As such I believe that Staffline looks well placed to grow even if there is a recession in the UK. Staffline shares currently trade at 761p, less than half the all-time high of 1,623p seen just seven months ago. Given the sell off, I believe that, for those investors who think that the UK will be able to muddle through the EU exit relatively trouble free an

Well, well....it seems Evil Knievel, the notorious shorter, has been buying VLE at 525p. That's a vote of confidence if anything is - I very rarely see him buying much at all except for the occasional resource company. This from his diary last night: Http://masterinvestor.co.uk/evil-diaries/the-evil-diaries-sergio-garcia-labour-volvere-beximco-and-turkey/?utm_source=Master+Investor&utm_campaign=3610b17264-Master_Investor_Daily_Bulletin7_18_2016&utm_medium=email&utm_term=0_25eff0bb7f-3610b17264-34898813 "I bought Volvere (VLE) this morning – this time at 525p. There’s no stock about".