Gamble of the week: well-performing small cap

This small-cap IT outsourcing company serving mainly SMEs recently announced profits above City expectations, and looks like an obvious takeover target.

The small-cap sector has been absolutely hammered by the fall-out from the credit crunch. The sector has fallen by more than 30% in the past 12 months as investors have sold out of their positions in perceived riskier plays. However, as much of the selling has been due to technical rather than fundamental issues, there invariably comes a point when buying opportunities appear.

Business Systems Group (Aim:BSG)

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.