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Simon Thompson

Time to chip in again 'Shares in a wafer maker are a deep value buy' ...

17 April 2014

Simon Thompson

About Simon Thompson

Winning stock and trading ideas from the creator of the Bargain Portfolio

Recent articles

  1. Buying into recovery

    Buying into recovery

    17 April 2014

    ‘A small cap support services company looks set for a strong earnings recovery to drive the share price significantly higher.’

    ‘On this basis, expect underlying EPS of 8.4p, over 60 per cent higher than the 5.1p reported last year. This means that the shares are trading on a prospective PE ratio of 10 for 2014, hardly a punchy valuation for a recovery play and one where further upgrades are possible if more strategic deals are done in what is a consolidating industry.’

  2. Bolting ahead

    Bolting ahead

    16 April 2014

    ‘A small-cap engineer has smashed earnings expectations yet again’

    ‘So with the shares offering a prospective yield of around 1.8 per cent, rated on a very modest 8.5 times cash profits to enterprise value, the valuation looks anomalous to me. It also means that I have no hesitation repeating my buy recommendation’

  3. Communicating well

    Communicating well

    16 April 2014

    ‘A lowly rated small cap marketing services company has been winning some big contracts to drive earnings skywards’

    ‘In my opinion, a rating of 10 times earnings estimates is very attractive for a company that is expected to grow EPS at a compound annual growth rate in excess of 18 per cent over a three-year period (2013 to 2016). It is also a business where contract momentum is building and costs have already been reduced during a restructuring of the operations’

  4. Taking a watching brief

    Taking a watching brief

    15 April 2014

    'Shares in a commercial jet broker have drifted post results and the price action is well worth monitoring for a low'

    'Strip out a cash pile worth almost 180p a share from the share price, and the cash adjusted earnings multiple is only 10.5 times underlying EPS of 29.8p for the latest 12-month period. To put that into perspective, it means that a business that made £4.3m of pre-tax profit is being attributed a value of less than £34m once you deduct net cash of £18.4m from its market value of £52m.'

  5. Happy capital returns

    Happy capital returns

    15 April 2014

    ‘A small-cap investment company is lining up yet another capital return for shareholders’

    ‘By my reckoning the current spot book value per share of 93p is 17 per cent higher than the current share price even though the company has been successfully selling off its assets at book value or above. In other words, at some point this year the board will be buying back shares at this elevated price to the benefit of all shareholders’

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