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Simon Thompson

Cash rich and undervalued oil plays ‘The oil price slump has taken no prisoners, and there are bargains to be had’ ...

17 December 2014

Simon Thompson

About Simon Thompson

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

Recent articles

  1. Platforms for growth

    Platforms for growth

    16 December 2014

    'A trio of companies offer a platform for earnings growth to reward shareholders’

    ‘The shares trade on a forward PE ratio of 13.7 – a 10 per cent discount to the FTSE All-share support services average rating - falling to a modest prospective PE ratio of 11.8 in calendar 2016. For a business predicted to grow annual revenues by 15 per cent for the next few years, and lift EPS by a third by 2017, a forward PE ratio in the order of 14 to 15 seems more appropriate for calendar 2016.’

  2. Lessons to learn from 2014

    Lessons to learn from 2014

    15 December 2014

    Simon Thompson reflects on a difficult year for small cap investing and notes the lessons to learn

    'Nonetheless I will keep a far closer eye on changes in the technicals on my watchlist of holdings, and plan to give greater weighting to this area when deciding to exit holdings in future. That way, I hope to be able to continue to run the winners I have selected, and contain losses on holdings that have not worked out. As a new year resolution, there has to be mileage in that.'

  3. Bargain shares updates

    Bargain shares updates

    09 December 2014

    'The share price performance of two of Simon Thompson's bargain shares could not be any different, but shares in both companies offer clear value.'

    'Despite Fortune Oil's own lacklustre share price, the investment in China Gas Holdings has clearly done well, rising from HK$11 per share in February when I advised buying Fortune Oil's shares in my 2014 Bargain share portfolio, to HK$13 now. This performance is justified too as China Gas Holdings recently reported a 49 per cent rise in first half revenues to HK$15.6bn (£1.2bn) and a 31 per cent rise in net profits to £150m.'

  4. Energising growth

    Energising growth

    08 December 2014

    'Simon Thompson reviews three small cap companies, all of which are expected to report bumper earnings growth, but trade on single-digit forward PE ratios.'

    'Analysts had expected the company to report EPS of 7.4p for the 12 months to end November 2014, up from 6.3p in 2013, but have now lifted this to 7.8p and upgraded fiscal 2015 forecasts by over 10 per cent, predicting EPS of 8.2p. And with cash generation strong, net funds have risen to 40p a share. The company is only being rated on 10 times fiscal 2015 earnings estimates, there is a progressive dividend policy too: the board has committed to raising the dividend by 15 per cent for the year just ended and by at least 10 per cent for the next two financial years. On this basis, the prospective yield is 3.63 per cent.'

  5. Broking for a profit surge

    Broking for a profit surge

    03 December 2014

    Shares in a wealth management firm and corporate broker have fallen this morning, but the market has failed to grasp the strong likelihood of a profit surge next year

    ‘I have no hesitation in advising you to use today’s share price weakness as an opportunistic buying opportunity ahead of the next trading update at the time of the full-year results in early March. With the benefit of deferred capital raisings coming through, forthcoming corporate clients wins, new mandates on the private client side, and a more profitable business mix following the reorganisation, the platform is in place for some bumper profit growth in 2015.’

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