The Vox Markets Podcast 2127: Small-cap Investing with Paul Hill and Paul Scott
Jun 19, 2025
Paul Scott, a UK equity analyst and stock market commentator, joins to share insights on small-cap investing. They delve into the recent Bank of England interest rate decisions and how these affect market dynamics. The discussion covers their thoughts on stocks like Bango, Costain, and PZ Cussons, spotlighting investment strategies amidst geopolitical uncertainties. With a focus on the evolving recruitment sector and recent IPOs, Paul emphasizes the importance of value investing while navigating risks, ending with a promising stock idea for the year ahead.
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Higher Rates Benefit Savers
- Higher interest rates benefit many homeowners and savers, transferring money from borrowers to savers.
- Many small caps are net cash positive and earn finance income, lessening the effect of rate changes.
PZ Cussons Special Situation
- PZ Cussons is undervalued due to African assets being valued at nil despite profitability.
- Selling African businesses will leave a high-margin, net cash business likely to re-rate higher.
Cordel Growth Potential
- Cordel has big US contracts and is near break-even, lowering risk from equity raises.
- Despite lumpiness and delays, it could double in value if it closes more pipeline contracts.