Join our community of smart investors

A bargain play on the e-scooter craze

This below the radar company is seeing explosive sales growth
A bargain play on the e-scooter craze
  • Company valued at a discount to peers 
  • Robust order book supports another year of growth.

It’s not often you get the opportunity to lock into a 14 per cent earnings yield when the risk to earnings is to the upside. However, a leading UK sports, leisure and cycle product provider offers exactly that.

The group not only has orders for cycles stretching well into the second half of next year, but offers potential to ramp up e-scooter sales if the UK government approves their use on public roads. It looks a near racing certainty that they will when trials complete next March. Trading on a PE ratio of seven and with the directors recently declaring a 10 per cent half-year dividend hike, the investment risk is skewed to the upside.

To continue reading...
Subscribe to Alpha Today and You’ll Get
  • Unlimited access to all of our content
  • The Analyst's round up of companies and updates on his Fantasy Sipp portfolio
  • Broker style company research notes from our small cap expert Simon Thompson
  • Quality, Momentum, Growth at Reasonable Price (GARP) and Dividend Yield stock screens
  • Algy Hall’s monthly value-momentum investment trust screen and portfolio of diverse closed-end funds
Have an account? Sign in