The strong rise seen in Weir Group’s share price since our last note in April has been more than justified by the interim results which have shown that the group continues to make excellent progress. Despite the underlying

Tandem Group is a designer, developer and distributor of sports and leisure products. The business is split into two divisions. Tandem Group Cycles Limited covers bicycles and accessories, including some of the best known brands in the UK. MV Sports Group PLC deals with sports, leisure and toy products including owned brands Hedstrom, Ben Sayers, Pot Black, Skaight and Kickmaster. Tandem has achieved very credible results both before and during the economic downturn . . . .

A trading update has been released and pre-tax profit for the six months to 31 July 2010 is now expected to be significantly higher than management’s previous expectations. The company has a cautious outlook due to the weak broad economy but still anticipates full year results ahead of management’s previous expectations. This news justifies our recent recommendation and with the shares trading on a low multiple of prospective earnings there is scope for a re-rating.

The focus at the group now is to increase sales and an 85% increase in the sales and marketing budget has been announced.  Much of this relates to key appointments in key geographical markets such as South America, China and Asia Pacific as the group looks to reduce its dependence on the UK and Europe.

Elektron is a niche player in several global, multi-billion dollar markets, and for such a small company is very global with representation in over 125 countries. The Elektron Technology business has very low market share providing scope for significant organic growth whilst acquisitions are always a possibility. The introduction of new products will also provide growth.

Although the shares have risen strongly over recent months, they still look undervalued given the progress that has been made at the group.  We believe the shares should be re-rated over the coming months and have set a price target of 36p on the stock.

Stadium Group has confirmed the disposal of its branded plastics business for net cash proceeds of around £2.5m. This leaves the company focussed exclusively on a high growth electronics business.

Results for the six months to 30 June 2010 are expected to be well ahead of the same period in 2009 and the company is confident that market expectations for the full year will be met.

Electronics group Stadium has announced that it is in talks to dispose of its Plastics division.  The latter, which is seen as non-core, saw a strong recovery last year with operating profit increasing by 90%, and the business is now in a suitable state for sale.  The disposal, which seems likely to proceed as the talks are at an advanced stage, will allow the group to focus on its core electronics’ business.  This is good news for the company and the shares are a BUY.

- Yes, the market’s down 2.6 per cent at 4936.21 (gulp!) but Mecom’s fall of 8.81 per cent is undeserved.  BUY

At today’s AGM, the company will update on trading since 1 February, revealing a 2% increase in revenues in the home credit business, while revenues in the motor finance operations are 20% higher.  Net debt has fallen to £26.1m and is expected to fall further in the second quarter.  This is a solid statement and bodes well for the rest of the year.  With the full year dividend likely to be 36p, the shares stand on a prospective dividend yield of 6.6% providing scope for a re-rating.