Paul Hill's tip of the week: a small cap with big prospects

Although the share prices of small caps tend to be more volatile than those of large corporates, they can still offer compelling value. Top investor Paul Hill picks one such stock operating in a growing market.

This week's two stock picks (see also: Gamble of the week: a nuclear attraction) are both small caps operating in growing markets. Although the share prices of such companies tend to be more volatile than those of large corporates, they can still offer compelling value. The trick here is to sift through literally hundreds of stocks and pick out the one or two hidden gems that can deliver substantial returns. The only drawback is that you need nerves of steel and an unquenchable thirst for research. Still, as the saying goes, no gain without pain'. And there are potentially some good gains to be made from this stock:

Tip of the week: Leadcom Integrated Solutions (Aim: LEAD, 61p), tipped as a BUY by Altium Capital

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

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.