Thursday 24 January 2013

Five minute Abchat with Richard Gill, Editorial Director for

Richard Gill is the Editorial Director heading up the t1ps team. He started writing for the AIM & PLUS Newsletter in 2007 before becoming its editor, along with sister publication Small Cap Shares. His investment philosophy is focused on cheap growth companies, but with a focus on solid cash generative growth businesses offering a dividend yield. He holds the Chartered Financial Analyst (CFA) designation, and was named PLUS Markets Financial Writer of the Year in 2008. Richard is an Associate Member of the Chartered Institute for Securities and Investment, a member of the CFA Society of the UK and a regular member of the CFA Institute.

What did you want to be when you grew up?
Early on probably a footballer and in my teens a rock star. I haven’t given up on either yet! When I grow up a bit more I would like to be Chairman of Bradford City.

Describe your role in ten words or less (if that’s possible!):
Researching and advising private investors on which equities to buy.

What is the most interesting thing about your work?
Researching companies and meeting the directors and entrepreneurs behind them are a highlight. Having a one to one session with successful people like Nick Robertson of Asos can be truly inspirational. Industry lunches and parties can also throw out some interesting situations.

What three things do you look for when tipping a company?
There are literally hundreds of things to cover when looking for decent companies to recommend. But if I had to name three… I think in the current environment a company needs to have a strong enough financial position to fund its plans. Given the difficulty raising funds, private investors can often be the worst hit if firms have to raise money. Growth is also a key factor, if a company can’t grow its revenues and profits then the shares are not going to go up! Finally, the price has to be right. The best run company in the world won’t be recommended by us if the shares look over-valued.

Is there a common misconception about share tipsters?
Tipsters are often seen as the finance equivalent of dodgy second hand car sales men – and for some that is certainly true. However, at t1ps we are regulated by the Financial Services Authority and our analysts all have relevant finance qualifications including the IMC (Investment Management Certificate) and Chartered Financial Analyst (CFA) designation. Also, all our chief analysts are approved by the FSA. Because of this we think we are bringing credibility into the profession which others just don’t have.

What developments do you expect to see in the next twelve months?
Everyone has been expecting (or at least hoping) for a recovery in the small cap equity markets for at least five years now. But with no major recovery in the wider economy expected I think 2013 is going to be pretty much the same as 2012. IPOs will remain thin on the ground, fundraising will remain difficult for smaller firms and more brokers & advisory firms will either merge or go bust. The possibility of the government allowing AIM shares into a stocks & shares ISA might give the markets a small boost. I also expect Bradford City to make at least one visit to Wembley.

In which emerging market do you see the best potential in 2013?
Mexico is one emerging market which has been relatively over-looked by investors. The country has its political and drug issues and is not as “sexy” as the booming Chinese and Brazilian economies. However, the country has recently been benefiting from rising wages in China, with global manufacturers looking to take advantage of Mexico’s low labour costs. This has combined with high fuel costs causing trading partner the US to import more goods from Mexico, rather than from further afield.

If I wasn’t talking to you now, what would you be doing?
Looking for new investment ideas or organising a lunch.

Thank you Richard!

Follow Richard on Twitter @RichardLeoGill

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