LON:HEAD | Headlam Group PLC - Buy Signal

10th Jun '15 by Pcarrallo10

5 comments 8856 reads

Headlam Group PLC and its subsidiaries sell, supply, market and distribute floorcovering and other ancillary products. They operate in UK, France, Switzerland and Holland.

http://www.headlam.com/

Historic peak in the last 12 months?	Yes
Spread <1%?	Yes, 0.198%
Exchange market size?	750 shares
What is my max spending according to EMS?	*750 £5.04 = £3,780**
Is EBITDA Positive?	Yes, 36.36 m
Market Cap	423.70 m
Is Market Cap / Ebitda < 20?	Yes, 423.70 / 36.36 = 11.65
Debt	-24.57 m
Is debt smaller than 3 times EBITDA?	No debt

I usually invest about £7,100 in every position I open, in this case caution advices us not to invest so much, just £3,780.

Make sure to check out my trading strategy at http://www.stockopedia.com/content/trading-made-ea...

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Rusty2

10th Jun '15

It could be but why was this not a buy signal at around 455p?

Again its too small a trade for you? Only £3,750.

Pcarrallo10

Hi herbie47,

Well, the key is to enter just when the breakdown is made, if you open a wider chart you will realize that Feb 4, 2013 was a good breakout option (about 345), finally stopped out at 449 if you draw a trend line.

Yes, the stock is small, but it depends on how much money you want to invest, I already quote about it in the article.

Regards,

Pablo

Hi Pablo,

I thought 455p was the breakout point? or am I misunderstanding?

I think its a good company and its on my watchlist and I regret not buying it at around 450p when I first looked at it.

Cisk

It appears to be a well-managed company, they've bought up smaller competitors over the years and have recently opened a new distribution centre (in Milton Keynes if memory serves).

Performance in France is dragging on the European operations (although much smaller than the UK in terms of sales and profits), recent results show UK recovering.

I'm a fan and have been adding. Icing on the cake is a decent (and growing) yield.

Sully8786

29th Aug '15

Hi Pablo et al,

Seems like things are going well here in the UK, but continue to be difficult on the continent.

Even so, management expect earnings to be ahead of expectations for the full year, which is nice to see and may have been missed by Mr. Market on Monday.

I liked the results and have purchased some. Seems like a nice steady company currently enjoying an improving trading environment

Headlam Group PLC - Buy Signal

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Pcarrallo10

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