The inevitable comments are sure to follow; too illiquid, dogs, wouldn't touch, not for me, market maker games.

If that is your view, I have no problem atall, but this thread is for people who understand these risks but are open minded enough to consider these stocks as viable for their own needs and at least a part of their portfolio, not (clearly) for you!

After all, in 2006 Plus-Quoted (formerly Ofex) housed some of the stock market's biggest winners, and YES they were genuinely tradeable to reasonable amounts for the small investor.

More info is at www.plusmarketsgroup.com

And in recent months the quality of new issue appears to have improved significantly. Quercus Publishing raised over 2 million, General Medical Clinics looks above average, and so does Air Touring Group.

My 100,000 Heritage petroleum Shares bought at 1.5p reached 17p. Franconia rose from 9.5p to over 70p. In recent weeks Eyeconomy has gone from 4p to 15p. myhomes, which I sknow some follow was available at 21p and is now available on AIM at over three times the price. Ashley House is a ten bagger over three years and GSC, a quite outstandingly managed commercial property play, has moved from 40p to 300p in a similar timeframe. of course like AIM it has a few dogs, but a well picked portfolio could bring quite stunning rewards.

Still not for you? No worries.

And so to my picks:

Yesterday's trading statement from Air Touring Group (ATGO) caught the eye. It could barely do otherwise!

".....with first quarter sales in 2006/07 exceeding full year
2005/06 sales. Since the start of the company's new financial year on 1
October 2006, aircraft deliveries have included:

* a new Socata TBM 850 (US Dollars 2.8m)
* a pre owned Socata TBM 700 (US Dollars 2.3m)
* a new Columbia 350 (US Dollars 430,000)
* a pre owned Cessna 340 (GBP 170,000)....."

Already has $16 million of orders confirmed for 2009-10 for this company (Plus:ATGO) a market cap of 6.5 million looks like a classical undiscovered plus stock.

Chemistry Communications CHCP came out with a trading statement recently, forecasting pre-tax eps of over 2.75p, on a share price of 14p in a strong growth area. (14p; that is not a misprint)

I've already mentioned GSC Property, a strong buy on a 2 year basis as the next revaluation should be spectacular following recent developments to their properties.

At the more speculative end, i like Netalogue with 55% growth year on year; followed by 40% year on year at interims.
Creative Entertainment Group has the sort of management more suited to a mid-cap although as yet few numbers, while Global Entertainment (no relation!) releases a film at the Chinese New Year which has genuine blockbuster potential.
Ashpool Telecom recently doubled profits and has a stake in 20% stake in Command TV, which links in to the X-Factor etc, for a million market cap, while Cellexus Biosystems may just have a 'killer' product and Minoan's development in Crete should reach realitry this calendar year.

Plus-Quoted is not a place for the faint hearted but for those seeking the very biggest rewards, offers fantastic possibilities.

I spent the weekend looking at Mastermailer Plus:MMHP and have bought in. Profitable, fast growing, strong management, tiny market cap and single figure p/e. Also some Intellectual property.

This looked promising on its pre-Christmas float and appears to have slid past investors radar, buried in a sea of turkeys perhaps.

But this little company merits your serious consideration. It believes there is no similar product available in Europe.

Even I managed to understand the albeit rather dull product (and there is a video on the website for anyone still wondering). Mastermailer have spent eight years perfecting a security glue which is primarily used to seal sensitive documents and has particular applications in the payroll sector for example. It is a laser printer compatible product and the company believes it will have uses in additional areas such as mailshots in particular.

And this is no fly by night. Already with a customer base of over 500 small and medium sized companies, (which proves this seemingly simple product range's value with over 64 million units sold) Mastermailer is now profitable and used around half the 500k raised at float to wipe out most of its debt which came from the company's earlier development phase.

There are 3.2 million shares in issue giving a market cap of around 3.5 million.

The company increased profits last year from 159k to 290k and sees further growth this year. They still have a small amount (51k) of unused tax savings.

It also owns intellectual property, has existing patents and several applications worldwide, including in the US, Australia and China.

There are plans to extend sales into Europe, the US and the Far East over the next 18 months and a 'significant' new product is expected to go live, possibly within weeks.

Two of the management are on the board of Transense and Close Brothers, a very decent institution, have taken a stake.

There is as an additional bonus a 12 month lock in period for the directors, which hopefully shows their confidence in the company. There are around 1 million options as far as I can see, but most are not exerciseable until the company makes 1 million or more in profits.

Risks as I see them:
1) Cashflow does not appear to be particularly strong, however funds raised at float and a 300k grant (not repayable as long as terms are met) should facilitate more than adequately for this.
2) It deals with small and medium sized companies therefore if one or more of its bigger customers were to default the company could suffer accordingly. However with over 500 customers, hopefully this issue is less severe than a year or two ago.
3) Much may depend for growth in years to come into foreign markets and there are no guarantees how that will be received, and there will be costs associated with talking on new sales teams.
4) There is always the possibility of new rivals emerging.
5) Tax credits will run out next year, so profit growth may slow thereafter.

The Opportunity:
1) I've already highlighted some of these, the growth if repeated should bring in something like 400k profit this year, which puts it on a single figure p/e for the current year.
2) This is a unique product and their current 5% share of the market could increase rapidly, given that competitors have a less stable and more expensive product (they claim anyway!).
3) Experienced and strong management.
4) Expansion into Europe and beyond (already the company is making small sales as far away as New Zealand).
5) Broadening of the product range, according to the prospectus likely to be imminent.
6) The intellectual property adds significantly to the market value of a company this size.
7) It would be easy to see Mastermailer being a target for one of the sector's bigger players.
8) Over 80% of the company tightly held and with growth firmly established a more than fair chance they will want to stay put.

All things considered, and accepting there are risks, i think this is a boring but growing company very much worthy of a stake.

I bought some shares this morning.

Interesting stuff, Hawick.

Are there any newsletters out there for Plus- and Ofex-quoted stocks?

ST send for a Free Mag....

http://www.unquoted.co.uk/

I agree with Harwick over his two new holdings on plus, I think if you have the patience you will be rewarded handsomely.

I also like General Medical Clinics GMCP, thread here on this board.

The quality of new issues as certainly been looking up on plus.

Plus is definitely beginning to tick a few interesting boxes ST and GF; small (and in some cases already profitable) established companies appearing in recent weeks; Air Touring, General Medical, Quercus, National Milk Records and now Mastermailer.

In my view I cannot remember five such promising companies coming to market and this is very encouraging for the future.

Looking through the new applications a nanotechnology company catches the eye, as does a potentially very interesting one involved in the removal of landmines.

For the first time I think it is possible to mix solid companies with more speculative ones and build a strong percentage of a portfolio based on Plus, though I would still hope to see the liquidity issue addressed further.

Nevertheless, I believe firmly it is now time for investors with reasonable risk profiles to consider increasing their exposure to the market.

Thanks guys - I shall be looking into all of this a lot more in due course.

I couldnt agree more Harwick, at last we have solid performers looking to enlist on Plus.

I also think you are correct with mastermailer.

I have to say I was a little confused as to what this company were putting out, in other words I didnt have a clue what it actually performs.

My brother to some extent put me right, and I was also worried that it may be something like the Amstrad e- mailer etc and that the company were praying on one product.

Thankfully I have had a word with a buddy of mine who is in this business and hes now fully explained it. Phew.

Bugger me I still dont have a clue after all that but figures dont lie and this looks like a sound company.

Ive had a few but will be adding more.

Nice thread, hawick

Parry People Movers share price (170.5p) has been in consistent decline. So it might not look very appealing, yet. The company suspended its shares at the start of November but returned just before Xmas after a rearranging itself.

The company has been around for years, but has now acquired a new lease of life, with its lightweight railcars attracting new appeal among those seeking greener transport options - especially after a very successful public scheduled service trial in Stourbridge throughout 2006, when 99% reliability was achieved over 4000 trips

"..As part of the developments to date, PPML has gained the necessary expertise in product supply and system approvals for full commercialisation. This includes the assembling of an experienced industrial supply chain able to take on the manufacture of modular elements of the rolling chassis, driveline and coachwork. Initial production orders are expected in early 2007 which should lead the company into profit during 2008..."

See full text of bullish Chairman's Statement (Dec 18)

Market Cap 0.92m
Shares Issued 856,555
Directors Holdings 31.1 %

www.parrypeoplemovers.com

They employ flywheels rather than batteries.
www.parrypeoplemovers.com/technology.htm
Using a brief (30secs) electrical charge to rev up the flywheel at each station.


For price data and charts, see
www.plusmarketsgroup.com/details.shtml?ISIN=GB0006751076