With a stock rank of 98, a PER(f) of 9.1 and net cash of £8.5m, it looks interesting, but the chart seems to be telling a different story. Wonder if anyone has a view ?
I currently hold Creston and am considering adding to my position, although the more prudent approach may be to wait until the interims that are scheduled for 24 November. There are factors that suggest the forthcoming interims will reflect current market expectations.....the tone of the last annual report, outlook statement and institutional holdings. Regarding the latter, Morningstar shows Majedie and Artemis holding 10.25% and 12.4% respectively and value investor DBay Advisors Ltd holding over 24% of the stock, recently increased from 19%. DBay are based in the Isle of Man and their website is worth a visit. Their strategy is very much value orientated. Creston is more or less cash neutral having spent £8m or so on recent acquisitions so no gearing issues; the PE is undemanding and there is (currently) a decent yield. It should benefit from the economic pick up in the UK and USA, although it also has some exposure to Europe. However I do not know the geographical split and there are also likely to be FX implications. I shall wait to see what the interims bring, but as always you will need to be guided by your own research. Good luck.
