Small Cap Value Report (Fri 30 June 2023) - BOTB, GLE, COST

Good morning from Paul, and happy half-year's eve! The card manufacturers are missing a trick not making cards for today, and half-year's day tomorrow!

Half-year comments

This weekend I'm hoping to do a half year review of my 2023 watchlist ideas, which have done quite well in a lousy small caps market. Here's an overview -

Top 20 main value/GARP ideas - as of last night, 14 were up YTD, 6 down, average +6%, vs AIM All Share down 10% YTD, which is a creditable 16% out-performance. One takeover bid out of 20 shares, Best Of The Best (LON:BOTB), a 32% gain. I forgot to put Warpaint London (LON:W7L) on the list too, which is up 48% YTD, so if I'd remembered, the overall gain would have been higher.

Hence it does seem that value/GARP small caps have been a relatively safe haven in a difficult market so far this year. Although we could see it as more bumping along slightly above the bottom, given that 2022 was really bad for UK small caps. The recovery will happen, it always does, we just don't know when! Plus no doubt we'll see more upside from takeover bids, which help demonstrate that the market is cheap right...