Small Cap Report - STAF, NPT

Monday, Jan 07 2013 by
3

Good morning! Here is my usual trawl through the morning's RNSs, looking for the undervalued and overlooked.

Staffline (LON:STAF)

Recruitment/outsourcing group Staffline (STAF) has issued a short & sweet trading statement, saying that 2012 earnings will be in line with market expectations. They reiterate they are, "well placed to continue to capitalise on a number of strategic opportunities that exist across our business", the biggest one of which is the  Govt's welfare to work programme (which could become pretty lucrative for STAF in the next 5 years).

Morningstar shows the broker consensus EPS as 33.6p for 2012, so that puts STAF on a fairly cheap PER of 8.9 times 2012 earnings. There is also a 8.3p forecast divi, giving a yield of 2.8%. So it's no longer amazing value, but certainly good value. However, if EPS grows as forecast to 40p (with a 9.5p divi) then the 2013 forecast PER falls to 7.5, and the yield rises to 3.2%, which is looking a lot more interesting.

STAF has been heavily tipped by the Mail on Sunday, so I suspect that pulled in a lot of the recent buyers, so personally I shall sit this one out, and look to buy back in any significant pullback to say the 260-270p area.

On 4 Sep 2012 I published a report here following a private client broker lunch I attended with Staffline's Directors, and was very impressed. I bought shares at 226p, although have recently sold them at c.300p, in order to recycle the money into something that hasn't yet moved up (Vianet), but looks like it will once the overhang from a large seller is cleared.

Incidentally, I also made Staffline the "share of the month" for Sep 2012 on my sister site, Small Cap Value, which I'm pleased to say is now up & running again after some major IT problems (had to recreate the website from scratch, but have installed proper automatic backups now, so should be fine in future).

NetPlay TV (LON:NPT)

Netplay TV (NPT), the interactive gaming company, puts out a strong Q4 & full year trading statement, indicating that they are confident of exceeding full year…

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As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


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Staffline Group plc is an outsourcing company. The Company is engaged in provision of recruitment and outsourced human resource services to industry and services in the welfare to work arena and skills training. The Company's operating segments include the provision of temporary staff to customers and the provision of welfare to work and other training services (Employability). It provides managed workforces to the logistics, e-retail, manufacturing, driving, agriculture, food processing and support services sectors in over 250 locations in the United Kingdom, Eire and Poland. The Employability segment includes the Avanta and Eos brands and Government contracts, which offer Work Programme, a contractor in four regions in England; Steps to Success, a contractor in Northern Ireland; Youth Guarantee (MyGo Centre), and Ministry of Justice Transforming Rehabilitation in Warwickshire and West Mercia. The Company also provides training services through Elpis, Learning Plus and Skillspoint. more »

Share Price (AIM)
1259p
Change
-3.1%
Mkt Cap (£m)
360.5
P/E (fwd)
11.1
Yield (fwd)
1.9

NetPlay TV plc is a United Kingdom-based online gaming company. The Company operates various interactive gaming services under an Alderney gaming license. The Company's brands include Supercasino.com, Jackpot247.com and Vernons.com. Jackpot247 offers casino experience round the clock. Jackpot247 broadcasts with live presenters on ITV six days a week. Jackpot247's show format includes presenter-led show on ITV with live auto wheel projected onto a projector screen. SuperCasino.com is a live casino experience online, on television and on Mobile. SuperCasino.com broadcasts live on Channel 5 with live spinners. SuperCasino.com's show format includes live spinner show on Channel 5 and Sky Channel 862. Vernons is an online gaming brand offering casino, bingo and sports betting to the customers. It does not offer live television show. The Company broadcasts on various platforms, such as online, mobile and tablet, and interactive voice response (IVR). more »

Share Price (AIM)
8.03p
Change
-1.2%
Mkt Cap (£m)
24.1
P/E (fwd)
8.6
Yield (fwd)
6.8



  Is Staffline fundamentally strong or weak? Find out More »


1 Comment on this Article show/hide all

StrollingMolby 7th Jan '13 1 of 1

I bought shares at 226p, although have recently sold them at c.300p, in order to recycle the money into something that hasn't yet moved up (Vianet), but looks like it will once the overhang from a large seller is cleared.

You must have published this minutes before Vianet (LON:VNET) started moving today, up 15p to 118p, on news that New Solera had reduced to sub-3%.  Thanks for your research posted on this elsewhere, which led me to DMOR and buy at 102.5p on New Year's Eve.  Onwards and upwards from here...

SM

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About Paul Scott

Paul Scott

Paul trained as an accountant, then spent 8 years as FD for a ladieswear retail chain.He became a professional small caps investor in 2002 to date.Paul writes a small caps report for Stockopedia.com on weekday mornings. He joined Fundamental Asset Management Ltd as a research associate in 2014, as part of their Small Cap Value Portfolio team. more »

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