UK DOGE
(Alliance News) – Ministers are considering scrapping the UK’s Payment Systems Regulator and folding it into the Financial Conduct Authority, Sky News reported on Saturday.
If confirmed, it would be part of a crackdown on the UK’s economic regulators by Prime Minister Keir Starmer and Chancellor Rachel Reeves, who aim to cut red tape and boost economic growth. A decision on the UK payments watchdog is expected in principle within weeks.
On occasion, I begin the daily RNS Hotlist with a news story. This allows me to limber up before diving into the highlights (and lowlights) of the stock market. Today, I have quoted yesterday’s news, where the government is apparently delivering on its promise of growth and cutting red tape. Of course, we know that the current level of taxation means we are wading through treacle in terms of growth. Every entrepreneur is currently being told to run—after being fitted with a brand-new ball and chain in the last Budget. We look forward to an additional one in the spring.
Another interesting aspect of the article above: how many of us were even aware of the Quango known as the UK Payment Systems Regulator? Even better is the idea that, in order to improve efficiency, it will be folded into an organisation renowned for its excellence—the FCA. It will be interesting to see how combining one ineffective and unnecessary organisation with another will boost efficiency in a DOGE-like fashion. As the head of the UK equivalent of DOGE, I would get rid of the FCA, the Financial Ombudsman, the PCA, the PRA, and many others that do not immediately come to mind. My experience, both direct and indirect, is that they are all useless and a waste of money. They also tend to be on the side of the consumer when they should be on the side of business, and vice versa. The Financial Ombudsman, in particular, is slow and lumbering.
Half Term
As far as this week in the small-cap world was concerned, it was dominated by one of the most important weeks on the stock market calendar: half term. In recent years, this event has become an excuse for the City to do absolutely nothing. According to traditional 20th-century values, one of the key reasons for holding down a job was that it provided a good excuse not to go with the kids to Legoland or Madame Tussauds. Now, it appears that everyone is desperate for the experience. To be fair, given the state of the market and the lack of incentives to work, any excuse not to do business—be it half term, Monday, Friday, summer, or Christmas—is hard to resist.
This Week’s Risers
Rather unusually, and probably because all the stock market renegades were away on holiday, there were plenty of rising stocks moving up on no news. This is, of course, taken as a major bullish trigger, especially when the market is quiet, as the implication is that one must be pretty keen to buy a low-volume, large-spread stock unless they believe something major is about to happen.
Leading the way in this respect was Mirriad Advertising (MIRI). Indeed, this is a classic. The shares were down 83% in 2022, 52% in 2023, and 93% last year. Therefore, to be up 71% so far in 2025 not only suggests that a major bullish change is on the cards but that someone is very keen to accumulate stock. The last trading update in early January revealed revenues were down 45%.
Shares in The Revel Collective (TRC) managed to climb 44% over the week, quite a feat given that its sector—hospitality—has been particularly victimised by the government. The bars and gastropub group must be reeling, even though TRC did have a strong Christmas. It would appear that our Soviet-style government is not too keen on people enjoying themselves at their local.
Vast Resources (VAST) must have been one of the most obvious buys in the small-cap space following its announcement on January 10—something that was noted here at the time. The explanation was the €500,000 free loan given to the company by its CEO, Andrew Prelea. Interestingly, I spoke to Mr. Prelea in the autumn, and my impression from the call was that he is deeply committed to the company. Donating half a bar of his own cash (on top of millions already) certainly underlines this. If only there were more CEOs with such tenacity.
Arkle (ARK) is not only one of the few horses I am aware of but also a zinc and lithium-focused group with practically zero PR. Despite this, the shares were up 40%—something very rare for this stock. Presumably, one of its ships is about to come in, either zinc in Ireland or lithium in Africa.
Stocks that many investors were likely willing up also made gains this week. For instance, there was a long-awaited rebound for First Class Metals (FCM), presumably with the market keen to hear what the 2025 field season will look like. Metals One (MET1) continued its rebound, as the market seems to have successfully digested the recent net £3m fundraise. This should not only give the group plenty of cash for the development of Black Schist but also the opportunity to buy into other projects should it wish to
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
