Weekender #1

A weekly recap on European micro-caps

Good morning all and welcome to the first edition of the Weekender. This is a weekly source of European micro-caps news. The Weekender will highlight the following:

  • Trends

  • Updates on stocks that we have published deep dive reports on

  • Leaders/Laggards

  • Notable Directors’ deals/changes in shareholder register

  • Tweets worthy of your time

Stay tuned for the monthly deep dive report.

Let’s dive in.


Highlights

The trend this week was companies reporting headwinds from a shortage of components and inflationary pressures. The common message was that the outlook for the remainder of the year remains uncertain. #BULTEN, #SOLI, #STAR, #EVE, #HKSAV


Leaders

Top 3 performers

  • Aegirbio Ab (#AEGIR) +83% (mkt cap £271m): Healthcare company focused on therapeutic drug monitoring of biologic drugs. Last week the company announced the receipt of an order worth SEK400m (£33m) for its Covid-19 test to deliver to Thailand. This week it won another order worth SEK400m to deliver to Vietnam. The company plans to expand with the intention to cover the entire region.

  • Flexqube Ab (#FLEXQ) +44% (mkt cap £37m): Industrial company producing flexible material handling carts. Tesla awarded the company a material handling cart project worth EUR1m for the new Gigafactory in Berlin. Deliveries will start in 3Q21.

  • Rapala Vmc (#RAP1V) +23% (mkt cap £345m): Manufactures fishing products for recreational fishing. It is one of four global players in recreational fishing. 1H21 results: Record 1st half driven by high market demand/strong winter season/significantly faster than expected implementation of the new ONE RAPALA VMC strategy. The group expects FY21 comparable operating profit to increase significantly from the previous year.


Laggards

Top 3 laggards

  • Petro Matad (#MATAD) -52% (mkt cap £24m): Mongolia-based oil exploration company. Last week the company was granted a fully approved Exploitation licence for development of the company’s 100% owned Block XX. This week the company announced a placing to raise $10m to commence production. Production start-up is anticipated in mid 2022. The company raised $10.4m at 3.5p. 214,910,544 new ordinary shares will be issued (24% of enlarged share capital).

  • Pixium Vision Sa (#ALPIX) -22% (mkt cap £29m): Healthcare company that develops implantable medical devices for the treatment of blindness. The company announced an EUR8m capital raise (shares and warrants) through a private placement with several new health care focused US institutional investors. The funds will be used to continue the clinical development of its Prima system and will be able to finance its operations until end of 2022.

  • Victoria Oil & Gas (#VOG) -21% (mkt cap £11m): Cameroon based gas exploration company. FY20 results: “The Directors are of the view that the Group is sufficiently funded for the twelve-month period from the date of approval of these Financial Statements. However, the Directors note that there are material uncertainties as set out in Note 3, which if any should eventuate, would require the Group to raise additional funds.”


Directors’ Deals

Notable deals

  • Open Orphan (#ORPH): Pharma services business (mkt cap £167m). Buyers: Executive Chairman (Cathal Friel), 1,132,075 shares at 26.5p (£300,000), owns 7%. Non-Executive Director (Brendan Buckley), 188,679 shares at 26.5p (£50,000), owns 1.2%.

  • Anglo Pacific Group (#APF): Natural resources mining business (mkt cap £300m). Seller: CEO (Julian Treger), 100,000 shares at 140p (£140,120), owns 1.8%.

  • Kingswood Holdings Ltd (#KWG): Private wealth management business (mkt cap £56m). Buyer: Chairman (Kenneth “Buzz” West), 213,924 shares at 27p (£57,759), owns 2.2%. Earlier in the week the US CEO also purchased a small amount of stock.


Notification of Major Holdings

Notable changes

  • Augmentum Fintech (#AUGM): Investment company focusing on early/late stage fintech investments. Buyers: New position from share issue for Tikehau Capital UK Ltd (French listed PE business). Notified position 3.9%. Close Asset Management (UK wealth manager) also got involved and holds 4.5%.

  • Ramsdens Holdings (#RFX): FX/pawnbroking/precious metals dealer/jewellery retial business. Buyer: Otus Capital Management (UK based HF) adds to position. Prior position 6.2%. Notified position 10.1%.

  • Pendragon (#PDG): Online auto retailer. Buyer: New position for Hosking Partners LLP (fund management company). Notified position 5%. Also note that the company reduced its position in Foxtons this week.


Tweets of the week

I have a backlog of great tweets that I want to share with you. One of my favourite twitter accounts is @FabiusMercurius. Here are two threads which are worth reading:

  • If you are new to the industry and aspiring to work at a HF, this is a must read:

  • Straight-talking career advice:


Have a great weekend and enjoy the glorious weather!

Dark Horse Research