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Read on to see an article posted on the OMG blog on 18 December 2017:

2018 IPO… It is a positive opportunity

An Analysts sleep’s fitfully as uneasy lies the head looking for value in 2018. Conflicting factors bubble through the troubled sub-consciousness; would it be best to move to Germany, Japan or the US?   We love London. UK Small cap companies are struggling to come to the market as IPOs are being pulled. But the London Stock Exchange is Europe’s most active market by value with almost 30% of the proceeds raised from European IPOs generated in London.  Company owners and managers are being put off floating due to the wide geopolitical uncertainty (Brexit).  But, smaller and pre-IPO companies usually operate in niche areas of the economy so are relatively resilient to wider economic events.  An IPO absorbs an inordinate amount of management time in an intense, expensive and intrusive process with only a ‘best endeavours’ chance of success.  A light of realisation dawned on the investment case for the small-cap IPO market, as only the fittest companies are going to make it to market, so 2018 Is a Positive Opportunity for IPOs.



ONEV – 13.5p – The ingredients for success



AVO – 47.5p – Buy on weakness

SRC – 42.25p – Second deal in two months



OneView (LSE: ONEV) formerly Armour Group

13.25p (13p/14.5p)

Mkt Cap: £10.95m

Next Results: Interims to September Due December

OneViews interims are due to reported in the next two weeks. The OneView Digital Store Platform is a new one-stop destination for marketers to gain knowledge, learn skills and ultimately drive digital transformation within their business. It is an off -the shelve etailer, where it is estimated that the addressable market will be worth $4 billion in annual sales by 2020. Companies can bring their stores into the Digital Age—seamlessly integrating all commerce channels with a digital-ready point of sale unified customer engagement and shared content across the enterprise. The point of sale (POS) solution is integrated out of the box with the retailer’s e-commerce site and the POS can run on hand-held devices or fixed tills. However, to be truly omnichannel the retailer needs a real-time view of inventory across the store estate.

OneView has developed a first of its kind real-time cloud-based Enterprise Store Inventory solution giving a competitive edge. These allow for a SAAS (Software as a Service) pricing structure which should start driving revenue. There is 62.3% of the shares not in public hands with major shareholders include Bob Morton, Lane Capital and Herald Investment. The CEO, Stuart Mitchel formerly from NSN Retail Systems holds 11%.



Full year losses were $3.4m but since then £3.9m of new equity has been raised and around $4m of debt has been converted in shares at 15p so transforming the balance sheet. There is sufficient funds for at least to the full year and to close some of the pipeline business.


Trading Strategy

The second half should show strong relative improvement so an investment into OneView seems worthwhile.

Last OMG! Price 13.25p

Buy Now - £72.60/year


Advanced Onotherapy (LSE: AVO)

47.5p (45p-48.5p)

Mkt Cap: £38.53m

Next Results: Finals Year/End December

AVO is at the front of technology in building a compact proton beam therapy machine in Harley St which will then sell worldwide.  Earlier this month an exclusive distribution agreement was signed with Yantai CIPU Medical Technology Co. Ltd.  The deal is to market and sell Advanced Oncotherapy’s LIGHT system across China, Macau, Taiwan, Hong-Kong and South Korea.  Yantai is to pay AVO £16.5m, which triggered a further £20.9m of equity at 30p a share. AVO are now well funded to continue the development of the machine that started some 3-4 years ago with an exclusive medical development agreement from Cern, the makers of the Hadron Collider, in Switzerland. The fact that Harley St. is likely to be the first treatment centre illustrates the whole story of how AVO’s technology will significantly reduce the size and cost of what remains a very expense (but effective) cancer treatment.



The £37.4m new cash at 30p will be enable AVO to accelerate the development so increased newsflow can be anticipated as milestones are achieved.


Trading Strategy

Had you have brought in August at 16.5p, clearly selling into rallies are buying on weakness would be the right trading strategy. The new range seems to be 40-50p.  Worth buying 

Last OMG! Price 16.5p

Buy Now - £72.60/year

SigmaRoc (LSE:SRC)

42.25p (42p/42.5p)

Mkt Cap: £59.5m

Next results: Finals, March

SigmaRoc (LSE:SRC) has made its second acquisition in as many months. It is paying £10.25m for Poundfield Products, which produces specialist concrete products and can be integrated with previous acquisition Topcrete. In 2016, EBITDA was £1.5m on revenues of £7.4m and it is well on the way to beating this in 2017. There is an option to acquire land and buildings for £1.5m.

Poundfield should be earnings enhancing in 2018, helped by the sharing of back office costs with Topcrete. There is already another acquisition on the cards.

SigmaRoc has raised £13.5m at 41p a share with directors also buying shares in the market at a higher price.


Trading strategy

Original recommendation: 43.75p/45p

Buy Now - £72.60/year

Read more sample articles:

25 Dec - Out of Styles

12 Dec - Clouds Increase Ones View

6 Dec - Bank on PCF

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