The Lemon Fool

Hello you wonderful people that are very knowledgeable and kind. I do hope you are having a good day today.

I was kindly scanning lots of different articles, journals and looking for stocks that are undervalued. I know small to medium cap stocks have better growth prospects to outperform the market however they can be more risky. I kindly please wondered if you had any thoughts on any stocks that you are interested in that could be undervalued, have good competitive advantages and a healthy balance sheet please? I have looked at various technology stocks that have fallen quite rapidly in 2022 based in the US. If anyone had any thoughts on this it would mean the world to me and it would help point me in the right direction so i can conduct further research.

Sending you lots of good wishes and thank you very much for reading my post. Hope you continue doing well and thanks again.

I've almost entirely given up on individual stocks other than a few legacy basket cases so I can't speak from direct recent experience. I guess you could do worse than squirreling away a few of the household name house builders. Assuming you're not looking for short term trading opportunities you will likely get a respectable return over the medium term.

Since you've asked so nicely here's some that I think are interestingly valued although not cheap. No balance sheet dramas with any either.
SOM
GAMA
SPT
SDI
Those are all a bit techie or engineering.

I also think asset managers may be good value, all of them although I like these two, one cheap & one relatively expensive:
POLR
IPX

Higher risk:
TUNE
XPP (not such a strong BS)

Just my opinion, they could just as well be past their peak never to recover. Although I own them all so am putting my money where my mouth is.

Not small to medium stocks in the main, but here is the change in prices of the shares in my portfolio since the start of the year. Some are in the FTSE250, so you might find some inspiration there:

Epic     Change    Yield 
BT.A      37.62%    4.99%
IMI       29.19%    1.54%
TSCO      26.94%    3.83%
TW.       22.09%    7.57%
BA.       15.86%    2.72%
NG.       15.60%    4.48%
TATE      14.95%    2.23%
RKT       12.41%    2.83%
VOD       11.92%    8.21%
UU.        9.79%    4.06%
SSE        8.59%    4.80%
KGF        8.01%    4.86%
SGRO       5.66%    3.26%
AZN        5.31%    2.02%
ULVR       4.46%    3.42%
ADM        3.98%    7.07%
HLN        3.45%    1.06%
BP.        2.87%    4.28%
SHEL       2.24%    3.75%
LLOY       1.59%    5.20%
GSK        0.60%    3.82%
DGE       -0.51%    2.14%
S32       -1.77%    8.46%
BLND      -2.08%    6.00%
SMDS      -2.67%    5.18%
PHP       -5.96%    6.29%
IGG       -6.39%    6.08%
AV.       -6.50%    7.49%
BHP       -6.58%    9.41%
IMB       -7.15%    7.34%
LGEN      -9.38%    8.28%
WDS       -9.60%   11.98%
PSON     -11.99%    2.60%
RIO      -13.30%    8.10%
BATS     -14.66%    8.24%

Av.Chg     3.91%    4.96%

TJH

doug2500 wrote:Since you've asked so nicely here's some that I think are interestingly valued although not cheap. No balance sheet dramas with any either.
SOM
GAMA
SPT
SDI
Those are all a bit techie or engineering.

I also think asset managers may be good value, all of them although I like these two, one cheap & one relatively expensive:
POLR
IPX

Higher risk:
TUNE
XPP (not such a strong BS)

Just my opinion, they could just as well be past their peak never to recover. Although I own them all so am putting my money where my mouth is.

Regarding SPT - Spirent Communications FTSE250
It is the only stock in the list I know anything about since it is a speculative holding:
I bought in May 2013.
To date it has returned a capital gain of 35 % and total return (share price and dividends + specials) of 69%

Clearly has not shot the lights out but I could have sold out at the first real high share price in August 2020 at 303p and returned 229% gain and 244% total return.

Who knew

But there are the opportunities and risks that go hand in hand with volatility of small caps

midgesgalore