5 Micro-caps that will 10 bag or more in 5 years or less - January 2021 update

It's now just over 4 months since I wrote the blog "5 micro-caps that will 10 bag or more in 5 years or less":-

The mouse "shares" his thoughts: 5 micro-caps that will 10 bag or more in 5 years or less (michae1mouse.blogspot.com)

Here's the follow up blog I wrote in September:-

The mouse "shares" his thoughts: 5 micro-caps update (michae1mouse.blogspot.com)

It's still very early days, but I thought I'd provide a brief review of progress.

1) IXICO (IXI) current share price 94p (up 36%)

Ixico is the star performer so far with a current share price gain of 36%.  The share price gains have come on the back of excellent full year results and a host of new contract announcements which underpin expectations for the year ahead and add to their already strong order book.

Their full year results showed EBITDA of £1.3m (more than double the previous year),  26% growth in revenues to £9.5m (another record for the group),  superb gross margins at 67% with a strong balance sheet which boasts nearly £8m cash. The contracted order book was up 36% at £21.7m and operating cash inflow was £1.5m.

The only surprise is that the share price isn't higher. 

2) CRIMSON TIDE (TIDE) current share price 3.35p (unchanged)

Not much news since the September update other than two new contract wins and some holdings notices. Perhaps that explains the currently static share price? Probably worth repeating my original thoughts:-

Gross margins 87%. Profitable. Minimal debt. Growing long term subscription revenues. Unaffected by Covid-19. Winning sizeable clients across supermarkets, rail and the NHS. Stick some figures into a spread sheet and see what happens to their profitable growth with double digit revenue growth. 

3) BIOME TECHNOLOGIES (BIOM) current share price 220p (down 6%)

The share price has recently recovered following a share fall after they announced a discounted placing back in September. This company really should capture investors imagination this year. Basically it's in the right place at the right time, and their Bioplastics division is really gaining momentum. Results should be in line with expectations for 2020. They have an expanding list of potential new customers, particularly in the US.

Given the potential for Bioplastics and their expanding US based client roster, the market cap. at £8m is absolutely tiny. They release their full year trading update on the 28 January.

4) SOFTWARE RADIO TECHNOLOGY (SRT) current share price 39.75p (down 6.5%)

Apart from the interim results there has been very little news from the company. The interims contained no surprises. Investors are patiently waiting for news of major contracts which will be transformational for all. There should be fireworks if they can announce one or two contracts over the next three months.

5) TRAKM8 (TRAK) current share price 16p (down 15%)

Half-year results suggested that this is still very much a possible recovery play. Whilst lockdowns continue to hamper and delay their full recovery, they are surviving and will hopefully move through the gears as we begin to see an end to the current stop/start economy. 

This is the line for investors to latch on to from the November interims,  "the Group expects revenue in the second half to be significantly higher than the first half given current orders, even with a reasonable downside scenario taken into account for the ongoing impact of Covid-19."

In summary after 4 months, apart from Ixico, the share price performance of the other four companies has been fairly flat. However, most importantly I'm happy with the progress of all five, and still anticipating an excellent performance over the five year time scale.