Simon Thompson has been appraising a stream of newsflow from a leading provider of consumer professional services including debt solutions and legal services. Having made a number of complimentary earnings enhancing acquisitions in recent months, Simon believes the profit growth predicted is yet to be factored into the company’s valuation. In fact, a current year forward PE ratio of 8, falling to 7 for 2015, is hardly exacting for a company nailed on to grow EPS by 10 per cent both this year and next and one still with a lowly geared balance sheet. A dividend yield of around 5 per cent adds to the attractions too.
Elsewhere, Julia Bradshaw assesses whether things are now looking up on the high street after a rather bumpy July.
Simon Thompson has noted some interesting corporate activity in two Aim-traded companies in the finance sector. The first is a cash rich investment company specialising in the insurance sector. By Simon’s calculation a share price drift in recent months means that the shares are now priced a third below book value, and little over half book value once you strip out cash. That’s a bargain basement valuation for a company that has delivered net asset value per share growth in double digits since listing eight years ago, and one that has been making some astute acquisitions too.
If you trust in investment trusts, but are torn over the choices before you, it is possible to leave the selection up to a trust of trusts manager. Peter Hewitt is one such manager and he explains to Leonora Walters how he picks the best holdings for his investment trust.
Simon Thompson has noted a share price break-out for a small cap support services company and one that looks worth following given the robust earnings growth analysts predict. In fact, trading on less than 10 times next year’s earnings estimates, and offering a prospective yield of 3 per cent, the rating is eye-catching for a company predicted to lift EPS by over 50 per cent over the next couple of years. And these are not 'pie in the sky' forecasts either as the company has been winning some major contracts to deliver the revenue needed to underpin the ramp up in profits.
The dairy industry in the European Union is on the cusp of a massive shake-up. Come April 2015, a quota system that has limited milk production in member states for nearly 30 years is to be scrapped. As if that weren’t enough, Russia's mercurial leader Vladimir Putin has kicked up a storm with a trade embargo on EU dairy products. To top it all off, stockpiling in China, coupled with bumper milk production, has sent global dairy prices tumbling since February. Julia Bradshaw takes a look at the implications for UK dairy, as well as how investors might gain exposure to this big - and growing - global food business.
Simon has been analysing the results of a solar-wafer maker and one of the constituents of his 2014 Bargain shares portfolio. With the shares trading well below the level of the company’s cash pile, and reasons to believe there could be an improvement in second half trading, then Simon sees medium-term upside to the shares.
Elsewhere Matthew Allan reports on the mining sector where M&A activity is hotting up, prompting Matthew to look at which companies might be targeted next, and to outline what qualities a deposit or mining company must have in order to be a likely takeover target
Mobile commerce is transforming the way we live and shop - and opening doors to new markets for a wide range of businesses. Julia Bradshaw finds out who's geared up for the M revolution and exactly why it all matters so much to companies.
Elsewhere Mark Robinson reports on how Mexico's oil & gas sector is being opened up to foreign investment - which means a lucrative new market for UK companies. It's early days but UK operators are handily placed to profit from Mexico's new legislation.
Mark also takes a look at the planned break-up of mining giant BHP Billiton, as the board decides to follow the example provided by the banking sector in separating out dodgy assets. However, the confidence expressed in the break-up of the resource giant raises questions over the original merger
Meanwhile Mr Bearbull puts four candidates through their paces as he seeks fresh investments for his income fund. Of the four, only two press the right buttons
And here's a rundown of all this week's main articles.
