Small Cap Value Report (Thu 15 Sept 2022) - GLE, THG, AVAP, DFS, HFG

Good morning from Paul amp; Graham! 

Today's report is now finished.

Agenda - 

Paul's Section:

MJ GLEESON (LON:GLE) - excellent results for FY 6/2022, beating (previously raised) forecast. Bulletproof balance sheet, and the market cap is currently at par with NTAV, so you're really getting it at a discount, because the large land bank is probably worth well above book cost. Positive-sounding outlook. If I had to buy one housebuilder, this would be it. The average selling price is only £167k, all houses (not apartments), so this should be defensive, in any housing market downturn. This share looks exceptional value, in my opinion. 

DFS Furniture (LON:DFS) - sorry it took me so long to crunch these numbers. I'm horrified at DFS drawing down most of its overdraft, to fund divis and buybacks. This seems incredibly reckless, given the rapidly deteriorating macro picture. The balance sheet remains horrible. I consider it uninvestable right now, much too high risk.

Hilton Food (LON:HFG) - is down 27% today, on a profit warning. The house broker lowers FY 12/2022 forecast by 23%, so this price reaction looks justified. Acquisitions have been fuelled by debt, which looks a bit too high to me. It's trying to...