OSEC - Ticker AI Digest

Among the larger and more profitable companies the de-rating of shares was also reflected. The largest single detractor from performance was Ergomed, which gave up some of its former gains as investor sentiment cooled towards the pharmaceutical sector. It produced final results <mark style="background-color:yellow">ahead</mark> of expectations and has since reported robust trading at its AGM. Learning Technologies also produced good results and robust trading statements but its shares have been de-rated. Craneware was another negative performer after analysts adjusted their forecasts for higher interest rates and more measured growth expectations in a slow US hospital market. SDI and EKF diagnostics were both punished for profit expectations post-Covid-19 still being set too high. Of the top ten detractors, half were companies still on the pathway to profitability. Lunglife and Maxcyte both suffered (as did other smaller holdings) from being in the healthcare sector and lossmaking despite each reporting encouraging progress and Maxcyte being particularly well funded. Engage XR, which has a virtual reality platform and some very high profile clients successfully raised money in the period and is growing strongly although profitability remains some distance in the future. Popsa, a private company, scaled back its marketing spend to preserve cash and has set its growth expectations at a more modest rate. This, and a review of peer group valuations, caused us to cut the valuation from the previous year-end level.

Among the larger and more profitable companies the de-rating of shares was also reflected. The largest single detractor from performance was Ergomed, which gave up some of its former gains as investor sentiment cooled towards the pharmaceutical sector. It produced final results <mark style="background-color:yellow">ahead</mark> of expectations and has since reported robust trading at its AGM. Learning Technologies also produced good results and robust trading statements but its shares have been de-rated. Craneware was another negative performer after analysts adjusted their forecasts for higher interest rates and more measured growth expectations in a slow US hospital market. SDI and EKF diagnostics were both punished for profit expectations post-Covid-19 still being set too high. Of the top ten detractors, half were companies still on the pathway to profitability. Lunglife and Maxcyte both suffered (as did other smaller holdings) from being in the healthcare sector and lossmaking despite each reporting encouraging progress and Maxcyte being particularly well funded. Engage XR, which has a virtual reality platform and some very high profile clients successfully raised money in the period and is growing strongly although profitability remains some distance in the future. Popsa, a private company, scaled back its marketing spend to preserve cash and has set its growth expectations at a more modest rate. This, and a review of peer group valuations, caused us to cut the valuation from the previous year-end level.