One of the hazards of small cap investing is that smaller companies are often more at risk of disruption from single events than larger businesses.
We saw this on Friday when the Character Group share price closed down by 19%. The trigger for this slide appears to have been a £3.3bn bid from US toy giant Hasbro for Peppa Pig brand owner Entertainment One.
I’ll explain why this could be bad news for Character Group later in this report.
As it happens, I was due to take a look at Character anyway this week. It’s the end of the month, which means that companies that have been in SIF for at least nine months are due for review and possible sale. On the list this week are three firms:
Character Group (LON:CCT) – should Character stay in the SIF folio? I’ll explain each side of the argument and take a look at the numbers.Anglo Pacific (LON:APF) – this mining royalty group has impressed me although I remain concerned by its dependency on one key asset. After a strong set of H1 figures last week, does it still pass my screening tests?
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