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Simon Thompson

Decision time Shares in a small cap housebuilder are trading close to a record high, but can they go even higher ...

16 April 2015

Simon Thompson

About Simon Thompson

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

Recent articles

  1. Riding the news issues gravy train

    Riding the news issues gravy train

    15 April 2015

    ‘Simon Thompson reveals the key financial characteristics he looks out for in new issues’

    ‘So with cash flow robust, earnings rising at a decent lick, and the board paying out dividends earlier than expected, it’s hardly surprising that investors have been warming to the investment case. In fact, the share price has taken out my initial target price and has returned 38 per cent since I initiated coverage in mid-November. But I feel there could be more upside to come as the shares are still only rated on 11 times adjusted earnings estimates and are well supported by a 5.5 per cent dividend yield.’

  2. Flying high

    Flying high

    14 April 2015

    Three small-cap shares are racking up the gains with more upside in prospect

    It's hardly surprising that investors are warming to the investment case. In fact, the share price took out the 55p resistance level on the chart yesterday to issue both a point-and-figure and swing buy signal. It looks the real deal and points at the very least to a run up to the pre-oil price slump highs of around 71p dating back to last September

  3. Profiting from M&A

    Profiting from M&A

    13 April 2015

    'Bid activity has spread into the small-cap arena and no fewer than five of Simon Thompson's stock market minnows are currently involved in takeover situations'

    'Underpinned by a chunky dividend, rated on a miserly cash-adjusted PE ratio of five and on only 1.7 times book value, the valuation remains attractive in my view especially since the board aim to use the company's substantial net funds to make profitable and cash generative acquisitions.'

  4. Poised for a profitable recovery

    Poised for a profitable recovery

    07 April 2015

    A lowly rated small-cap fund manager is primed for recovery

    To illustrate the operational gearing effect, analysts predicts the business is capable of generating pre-tax tax profit of £3.3m on revenue of £15.7m this year, but based on an increase in revenue to £17.7m in 2016, pre-tax profit could soar to £4.7m. On that basis, the shares are being rated on nine times current year cash-adjusted earnings estimates, falling to a bargain-basement six times 2016 forecasts

  5. Small cap updates

    Small cap updates

    31 March 2015

    Simon Thompson updates on several differing smaller company situations

    'Boasting a client base of 130 companies, the broker raised a total of £2.8bn for its own clients last year and this positive trend is set to continue.'

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