Along with other world stock markets, the FTSE 100 has rebounded very smartly since the beginning of March, mainly as investors take the view that the banking crisis may be over. While this is impressive, the real outperformance has been in that much-maligned sector, smaller companies. Since hitting its lowest point for the year — and, indeed, 15 years — on March 9, the FTSE SmallCap Index has risen by 31 per cent, an astounding rally. That compares with a bounce of only 17 per cent in the premier index. The smaller companies sector has had an abysmal couple of years. Since hitting an all-time high on June 5, 2017, the FTSE SmallCap has lost half its value, with many stocks trading at less than five times prospective earnings — in other words, being priced for the knacker's yard. Yet there are reasonable grounds for suggesting that the smaller companies sector is set to enjoy continued growth, not least its yield, something likely to attract investors increasingly seeking income. The FTSE SmallCap Index, for example, currently offers investors a yield of 7 per cent — twice that of ten-year gilts. Meanwhile, with dividends under threat everywhere, there is reason to believe that payouts are going to be more secure in the small caps sector. Executive directors here, generally speaking, tend to own bigger stakes in their businesses and usually rely on company dividends more than their large cap brethren. This means that they have a healthy interest in maintaining the payout. Small caps require a good deal of research by investors, which is why many prefer their exposure to the sector to come via mutual funds, but green shoots abound for those prepared to look. One example is Eckoh, the hosted speech recognition and interactive voice response services provider, whose shares rocketed by a third yesterday after news of contract wins. Even after this rally Eckoh, whose shares have never recovered since it was implicated in the Richard and Judy phone quiz scandal two years ago, is still valued at only 28 weeks' sales and barely twice the amount of cash it has on its balance sheet. In addition to the contract wins, Eckoh has a three-year deal with the Ministry of Justice for automated fine payments in England and Wales, which, while yet to fully kick in, sounds as recession-proof as it gets. ，英语论文题目，英语论文范文 |
