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Simon Thompson

Broking for more success ‘Shares in a corporate broker have surged to their highest level since their 2007 bull market highs and with good reason too.’ ...

18 September 2014

Simon Thompson

About Simon Thompson

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

Recent articles

  1. Thalassa sinks on revenue warning

    Thalassa sinks on revenue warning

    17 September 2014

    Shares in a marine seismic equipment provider plunge as US/EU sanctions against Russia impacts a major contract, but the medium-term investment case is still positive

    ‘The cause of the sell-off related to news that US/EU sanctions against Russia means that the $10m (£6m) of revenue scheduled for the second half from a contract with SMG Ecuador, the Ecuador business of State Sevmorgeo Company, the Russian geological sea survey company, is now unlikely to come through now. That said, a better than expected margin performance means that profit forecasts have only been shaved 10 per cent despite the revenue shortfall’

  2. Powering on up

    Powering on up

    17 September 2014

    ‘Shares in the UK's leading specialist supplier of technical fluid power products look primed to make gains in the coming months’

    ‘Shares are trading on a modest 10 times next year’s earnings estimate, a 30 per cent discount to the average PE ratio for the company’s peer group. It’s worth noting too that proforma net debt equates to only 17 per cent of equity shareholder funds of £55m, so the company’s balance sheet is not overly geared and should enable further bolt-on acquisitions.’

  3. IQE beaten down

    IQE beaten down

    17 September 2014

    Shares in a supplier of wafer products and services to the semiconductor industry are marked down on news of some chunky impairment charges

    ‘There is no getting away from the fact that the company has since taken a £13m non-cash hit - a sum equivalent of 12 per cent of its market capitalisation - on a project where I am unable to quantify the upside from. That makes me uncomfortable to say the least. It is also impossible to ignore the fact that other investors clearly feel the same way which is why the shares were marked down 11 per cent’

  4. Awaiting a profit rebound

    Awaiting a profit rebound

    16 September 2014

    ‘Shares in a small cap emerging markets asset manager remain subdued, but could make headway if frontier markets rebound next year’

    ‘Analysts predict a rebound in fees earned next year, pencilling in revenues of $40m for fiscal 2015. On this basis, pre-tax profit would recover to $10.1m to produce EPS of 1.4¢, or 0.86p, to support a dividend of the same magnitude. On this basis, the shares are offering a prospective yield of 6 per cent. And with net funds and investments accounting for 6.5p of the current 14.5p share price, then the cash adjusted PE ratio is only 9 for 2015. Also, net of cash the company's equity is only being valued at 1 per cent of assets under management, a modest rating relative to peers.’

  5. Tapping into retail growth

    Tapping into retail growth

    16 September 2014

    Shares in a supplier of software to the retail, manufacturing and logistics sectors look primed for a multi-month re-rating

    ‘In my opinion, for a company set to deliver 20 per cent-plus profit growth, and one where the sales momentum is well supported by a strong pipeline of orders, the shares look attractively priced on only 11 times historic earnings and rated on 1.3 times book value of £52.6m.’

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