# Opinions on small caps



## Fleeta (6 December 2004)

Hey guys,

I don't know how you guys ever get enough post to enter the comp!

With the market approaching 4000 points and surely can't keep running the way it has, is there more value in Small caps or blue chips at the moment.

A couple of small caps I hold that have missed the boat are:

Mark Sensing (MPI) - up and down like a yo-yo for years, thought they were coming out of troubles but had a profit warning and are now at their lowest for a while.

Hugall & Hoile (HUG) - another small cap going nowhere despite maiden dividend and improving profits, not sure why it is still so low.

PCH Group (PCG) - has had a good run, but considering its maiden dividend payment and recent announcement it is considering an interim dividend, I think should be alot higher than it is.

Any opinions on these stocks?


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## RichKid (6 December 2004)

Hi there,
Mark Sensing MPI was mentioned in another thread due to director activity, I'm keeping an eye on it to see what'll happen- have you been following it closely over the years?

https://www.aussiestockforums.com/forums/showthread.php?t=607&highlight=mpi  (See last post in that thread)


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## Fleeta (7 December 2004)

I've been following MPI for years, they seem to have really good technology and a great production facility out in Bayswater. The problem is that they just can't get sales. Their biggest customer has cut back orders, causing a profit warning released I think in October this year.

Only a few months ago, I thought they would run up and over 30c after they sorted out all of their board struggle issues and got rid of the MD that was useless, but it looks like their troubles aren't over yet.

I would think a good speculative buy at 7.5c, only because I think they have shown that they are profitable and, a little while back now, they put through an adjustment to write back their retained losses to share capital, a move you would only make if you were thinking about paying dividend in the future, which I think MPI is. So keep watching...


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## TjamesX (7 December 2004)

Fleeta,

I also hold PCH Group (PCG). You may need patience with this one, I intend to hold onto these for a while and I think the strength in their earnings growth has been impressive - which has led to them being able to provide dividends.

I think their overseas earnings may have been hurt slightly with the rise in the aussie dollar.

Long term hold for me

TJ


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## TjamesX (14 December 2004)

PCG up 15% in the last week and a bit - on no news????

It hasn't moved this much and quickly in a long while - I think someone may be bying a large holding.


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## Fleeta (14 December 2004)

I remember there being speculation of a takeover a few months back, so I wouldn't be surprised....hopefully some good news is just around the corner.


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## kooka1956 (14 December 2004)

Hi Fleeta I think it is definately the time to look at lower cap. stocks .Most blue chips have moved solidly in the past 6 months apart from the large banks which hit their peaks earlier this year and are not responding to this current surge . I can only see the market slowing down, or at least taking a breather for a while . Small caps that are paying consistent dividends have great potential,after all some of them will grow to be your future blue chips. Regards  KOOKA


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## Fleeta (15 December 2004)

Totally agree with you KOOKA...and it's great to be watching the small caps rise during the correction of the general market. The last week has been a great one for several of my stocks, mainly PCG and CKL...keep an eye on both of these.


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## Fleeta (7 February 2005)

PCG going along nicely, at 12 month high now, expecting top results...

CKL announced results today, maiden dividend, share price should break through 75c soon.

2 stocks to put on your watchlist - sure they won't do an NMS, but they are certainly walking the right way.


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## TjamesX (25 February 2005)

Cheers to all PCG holders, half yearly report out today!!

AND the market liked it   

Price currently up 5.6% to 0.56


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