Great British Stock Ideas! #28

1. Abrdn Property Income (£API) – Real Assets, Real Value

🏢📉📦

Thesis: “Abrdn Property Income is the extremely small stub (<£10m market cap) remaining after all the REIT’s assets were sold save one, which is clearly its hardest to sell, most illiquid asset… The range of outcomes is fairly wide but I see 25% - 33% upside to my low - mid case liquidation value estimates. If the market is pricing Far Ralia correctly on an implied basis, the liquidation costs would result in -15% downside and if Far Ralia is worthless, I see -35% downside. In the best case - if they get their current asking price - there’s 50% upside.”

2. Ascent Resources (£AST) – Case Research

⛽⚖️🌎

Thesis: “An onshore Hispanic American / European focused natural resources and energy company, believe that Slovenia’s populist campaign has deprived them of their right to develop their Petisovci oil and gas field (a JV with another Slovenian company with effective state-control).” “A 79x Favorable Legal Case, Near Term Catalyst, 30% Margin Applied, Free Optionality, Few Idiosyncratic Risks, Overlooked For No Sound Reason.”

3. Auto Trader Group plc (£AUTO) – Deliberate Practice of Value Investors Club

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Thesis: “A wide-moated dominant classified business… We believe there’s the prospect of many years ahead of MSD% growth in top-line, and more in EBIT, driving a double-digit IRR with healthy asymmetry in a strong business.”

4. Capricorn (£CNE) – Case Research

🛢️⚖️💥

Thesis: Cairn Energy (now Capricorn, CNE.L) offers a potential 118% upside if it chooses to proceed with and successfully enforces an arbitration award against India. However, the article also uses the case to illustrate that legal tribunal awards do not guarantee payment, warning investors that markets often mistakenly assign near-certain probabilities to unpredictable legal outcomes.

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5. DCC plc (£DCC) – CrackersInParis of Value Investors Club

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Thesis: A “energy distribution business centered on propane and renewable energy, with profitability driven by local economies of scale similar to the waste management industry.” The share re-rating is expected to be driven by a series of catalysts, including major share repurchases, a smaller sale of the Exertis UK facility, strong half-year results in November 2025 showcasing organic growth in continuing operations, and accretive M&A in propane that elevates consensus estimates for 2026-2027.

6. Eco Buildings Group plc (£ECOB) – Legal Special Situations

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Thesis: “A UK-listed modular housing company with a tiny market cap is pursuing a €195 million arbitration claim against Kosovo and just announced a €420 million contract with Chile.”

7. Gaming Realms (£GMR) – Fat Alpha

🎰📱💸

Thesis: “Gaming Realms develops, publishes, and licenses gaming content with a focus on “Slingo”… The game is a combination of bingo and slots and is licensed to online casinos (B2B) in regulated markets… There is a good chance that the company will be taken out by a larger firm in the space (for example, Evolution)...I don’t mind holding on to a growing company with no debt, 26% ROE, in an industry that will never die. Management and the BoD are aligned with shareholders and appear to be doing all the right things.”

8. IP Group (£IPO) – Szew Invest

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Thesis: A “company with an unusual focus: it finances and develops startups that originate from university research… trading at a discount of approximately -40% to its NAV… Considering the 80 investments in potentially revolutionary companies, plus the patent portfolio, which could generate significant returns in the foreseeable future, the absolute market capitalization of £540 million seems very low, especially given the substantial net cash value. There are many potential triggers, such as the sale of individual investments.”

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9. Jet2 PLC (£JET2) – LDMR of Value Investors Club

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Thesis: “A UK based low-cost airline that started selling packaged holidays… trading for 6.3x TTM earnings, with 20% of the market cap in net cash… The company has been aggressively repurchasing shares, buying 0.05%-0.2% of the total outstanding shares DAILY… The company is investing in a new fleet of aircraft that was negotiated in the peak COVID era (pre-inflation)... I believe this company will grow top line ~10% / year and EPS by over 20% / year for the foreseeable future... I believe that a £3 EPS is highly likely in 2-3 years, which would put the company at 4.7x earnings.”

10. Kazera Global (£KZG) – Case Research

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Thesis: KZG won an arbitration dispute with Hebie Xinjian Construction, which awarded Kazera $11.9$ million plus costs for a breach of a sale agreement. The primary remaining risk and catalyst is the successful enforcement and collection of the award.

11. Mercia Asset Management (£MERC) – Central Tendency

📊🌱🏢

Thesis: “A ~£125m market cap investment manager focused on early-stage companies across the UK, mainly in the ‘regions’ (i.e. outside of London), with a particular focus on the Midlands and the North… Today, Mercia trades at a ~15% discount to the fair value of its direct investment portfolio and cash (net of the ~£15m that will be utilized over the next 2yrs to support existing direct investments). This does not give the Company any credit for its sticky/recurring, growing, highly profitable investment management operations.”

12. Metro Bank plc (£MTRO) – Perea of Value Investors Club

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Thesis: “For what ought to be a company in a boring industry (UK banking), Metro Bank has had a colourful history… Metro Bank’s recent evolution – from its controlling shareholder, to its management, strategy, capitalisation, regulation (MREL), and upcoming inflection in profitability – has gone largely unnoticed. I believe that shareholders have the opportunity to return 3x over the coming few years.”

13. Nanoco Group (£NANO) – Legal Special Situations

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Thesis: “A UK nanotechnology company… In April, Nanoco filed a patent lawsuit against LG in the U.S. District Court for the Eastern District of Texas. Four specific patents. Willful infringement claims. Enhanced damages possible. The company is seeking both a permanent injunction and monetary damages. Given the scale of LG’s display business, those damages could potentially reach hundreds of millions.”

14. OPG Power Ventures (£OPG) – Newell Street

🔥⚡📉

Thesis: A deeply mispriced Indian coal power producer, where normalised owner earnings of roughly £8–9m and asset value well in excess of the current market capitalisation imply very substantial upside from today’s share price. The upside case rests on securing cheaper domestic coal (potentially via new SHAKTI FSA rules), gradually improving tariffs and cash collection, and resolution or manageable settlement of the FEMA investigation, while the key risk is that regulatory, coal sourcing or enforcement issues permanently impair margins or trigger a severe penalty.

15. Panthera Resources (£PAT) – Stock Therapy with Penny Queen

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Thesis: “A small mining company ($50M market cap) is suing India for $1.58 billion after the government retroactively changed laws and took their gold project… The question isn’t whether this is real - it’s whether you understand it well enough to hold through the volatility.”

16. Panthera Resources (£PAT) – Legal Special Situations

🐆📜📈

Thesis: “Panthera Resources is claiming India owes them more than 40 times their current market cap. The tribunal just fast-tracked the timeline… Even at US$200-300 million in net proceeds after funding costs, this represents exceptional returns relative to current valuation.”

17. Panthera Resources (£PAT) – Case Research

🐆⚖️🚀

Thesis: An asymmetric investment opportunity driven by its fully funded $1.58 billion arbitration claim against the Government of India for the expropriation of the Bhukia gold project. The thesis projects that a successful legal award or settlement could generate a cash yield exceeding the current market cap, although the ultimate return depends on the timing of the payment and management’s capital allocation in subsequent mining projects.

18. Piraeus Port Authority (£0FHO) – Jonathan’s Coffee House of Value Investors Club

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Thesis: “The market-leading port operator in Greece with #1 container terminal (and consistently top 5 in Europe) and #1 passenger terminal (and consistently top 3 in Europe) by volume… PPA is a localised monopoly that ranks highly on the measures of a good port (geography, water depth, surrounding infrastructure, as well as governmental and environmental permissions)… No-brainer price of €35 per share (it was last there in March 2025). At that price, attractive base case IRR (>20% EUR IRR over 5 years) and short-term risk/reward (1.8x).”

19. Steppe Cement (£STCM) – Deep-Value Stocks

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Thesis: “A single-site cement producer in Kazakhstan… Steppe Cement is a healthy, cash-flowing, cash-rich business with a very shareholder friendly approach. It’s earnings are solid and quite reliable.” “It’s trading around liquidation value, which implies the operating business is worth virtually nothing to the market. And, if you bought the business at today’s price, you’d have your money back, from earnings alone in about 5 years.”

20. Tate & Lyle (£TATE) – Treetop333 of Value Investors Club

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Thesis: “A specialty ingredients business that trades like the commodity ingredients business it used to be… Tate deserves to trade at least at a market multiple. I won’t argue that this is a true specialty ingredients business, but nor do I need to given the current valuation.”

21. Warpaint (£W7L) – The Little Substack that Beats the Market

💄📈🌟

Thesis: “A high-growth, asset-light cosmetics company operating primarily in the “Value” and “Masstige” segments… Warpaint stands out as a quality business with proven growth capabilities, having multiplied its revenues by 6X over the last nine years while consistently generating high Returns on Invested Capital… For a company of this quality, with a proven double-digit growth track record, a valuation of 10x P/E with net cash (at the current price) is intrinsically highly attractive.”

22. Wizz Air (£WIZZ) – JJ Investment Club

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Thesis: A low-cost airline group. “Wizz Air’s current valuation is a clear overreaction to a series of temporary, albeit significant, headwinds. A compelling disconnect exists between the current market valuation and the long-term, normalized earnings power of this best-in-class operator.”