Net cash, profitable UK stocks, many in a state of almost hibernation performing little more than cash but all in a good position to grow in a strong economy even with higher normal rates:

UK Value with dividends:
GFRD (Galliford Try)
GFTU (Grafton Group Plc)
MGNS (Morgan Sindall Group PLC)
SQZ (Serica Energy)

UK growth:
ALPH (Alpha Group)
AFM (Alpha Financial Management)
GAMA (Gamma Communications)
GAW (Games workshop) [Note: dividend not quite covered]
Jet2

Any views and are there any more that fit the bill??? Thinking British ISA that could be capped at £5000 per year so there is a a bias towards higher growth?

For balance:
"Research shows that excessive stockpiling is almost as detrimental to future returns as being penniless. The poor historical performance of cash-starved companies is understandable – they probably lacked the resources to capitalise on opportunities. Hoarders can’t use the same excuse, so why is it that they misfire so badly?" 2019 https://www.investorschr...19/09/05/cash-hoarders/

UK ISA £5000 Consultation:
https://www.gov.uk/gover...ions/uk-isa-consultation

Thread title changed. Thanks.

I have every confidence that the infrastructure is on the path to recovery and greater profits in 2024. Agree the nearly or debt free ones BBGI, INPP and HICL are relevant to this thread. Even the private equity ones like OCI are holding net cash.

The list I include above are quality UK small companies in a cash position and would be held by trust like Fidelity or JPMorgan UK small companies. Apart from Alpha Group (ALPH) I think the others are really there for 2025 given that the UK domestic market is not as strong as the US, for now I would think our money is better off in what we already own especially as rates are cut you want to be in some leverage companies, but the market is starting to factor in a higher "normal" rate of interest and I am starting to believe that and so could the rest of the market if not now then perhaps at the end of the year.

For that reason cash in the bank provides an edge and especially if margins are thin there will be little competition in the space like for MGNS. Or like Alpha Group (ALPH) they temporality hold clients cash balances providing massive amounts free non-operational cash flow that dwarfs operational profits.

Alternative you could hold the trusts at a discount but with all the data JPMorgan and co have I just think they trade sideways with any overweight position only 5% of assets so when they went overweight on winners that did win, the overall performance of the trust did not move. I just think deeper research is required and given the state of the UK economy we still have plenty of time.

@Thrugelmir Somewhat agree, but CTY focus on larger companies and it would be great to cherry pick some of these if they offer growth.

The smaller industrials are more domestic in earnings and are just plodding along making 5-6% return and preserving cash waiting for growth...

GFRD (Galliford Try)
GTFU (Grafton Group Plc)
MGNS (Morgan Sindall Group PLC)

...I presume we could add homebuilders to this list.

When you do start looking at well known FTSE100 growing companies the P/E can still be very high and comparable to the US. This is why I have gone down the cap size. If the above are "value" stocks then Alpha Group and unrelated Alpha Financial Markets could provide pent-up up-side being "growth" stocks at a reasonable price.

After being 25% up in a very short space of time on ALPH I decided the next one will be Jet2.

Jet2 continues its downward trend making it by far the best value package holiday company listed imho and one of the cheapest UK company making profits and with a large net cash balance. I doubled up starting from a low base and will add the third batch when I see the share price start to recover. Lots of competition in the space but I hope the larger cash pile provides a greater opportunity to take market share.

Net cash position in Jet2:


The sell pressure results in a trend that indicates I will losing money before I make money. Was the same with ALPH. Once you find a great company you have to wait for all the sellers to get out.