Small Cap Report: WGB, JPR, TNI, TRI, NXR, STOB, RGD

Tuesday, Nov 13 2012 by
3

Good morning. Apologies for slightly erratic service lately, should be OK to do a report every day for the rest of this week hopefully.

I hold shares in Walker Greenbank (LON:WGB), a luxury interior furnishings group that looks a good value situation to me, on a fwd PER of about 8. Slightly irritated with their RNS this morning which just mentions them having won a magazine award, with no financial information mentioned at all. The RNS is not for PR, it's for proper financial news!However, I shall forgive them providing they keep delivering good earnings growth as they have done for the last 3 years.

Troubled regional newspaper group, Johnston Press (JPR) has issued an IMS which says that they expect full year operating profit performance for 2012 to be broadly in line (i.e. slightly below) market expectations.

That's all very well, but they are really not making much inroads into their gargantuan debt pile at all, which has only reduced from £352m at the start of the calendar year, to £336m at 31 Oct. Just servicing the debt seems to be absorbing the lion's share of their cashflow.

When you take into account the declining nature of the business, I remain of the view that the equity of Johnston Press is probably worthless - as I don't believe that the business will generate enough cashflow to ever repay its debt. Therefore these shares do not tempt me at any price - why take the risk?

Whereas Trinity Mirror (TNI) is a much more convincing newspaper story, with debt reducing so fast that it looks set to eradicate its net debt by 2014 (although a big pension deficit will remain there, but largely offset by freehold property assets).

(I hold neither long nor short positions in either JPR or TNI).

Interim results (6m to 30 Sept) from international fastenings group, Trifast (LON:TRI) look pretty respectable, with underlying EBITDA up 50% to £4.6m, and adjusted EPS up 25% to 2.3p.

The full year forecast (per Stockopedia, which I am now using for my fundamentals data, and have to say am finding it an excellent reference site) is for…

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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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Walker Greenbank PLC is an international luxury interior furnishing company. The principal activities of the Company are design, manufacture, marketing and distribution of wall coverings, furnishing fabrics and associated products for the consumer market. It operates through two segments: Brands and Manufacturing. The Brands segment is engaged in the design, marketing, sales and distribution, and licensing activities of Sanderson, Morris & Co, Harlequin, Zoffany, Anthology and Scion brands operated from the United Kingdom and its foreign subsidiaries in the United States and France. The Manufacturing segment is engaged in the wall covering and printed fabric manufacturing businesses operated by Anstey and Standfast. It sells in approximately 80 international markets. It operates through its subsidiaries in the United States and France, and its own sales operations in Holland and Dubai. The Company has showrooms in London, New York, Paris and Dubai. more »

LSE Price
204.5p
Change
 
Mkt Cap (£m)
142.2
P/E (fwd)
14.3
Yield (fwd)
1.8

Johnston Press plc is a United Kingdom-based local and regional multimedia organization. The Company provides news and information services to local and regional communities through its portfolio of various publications and Websites. The Company operates through two segments: Publishing (in print and online) and Contract Printing. Its portfolio contains approximately 190 paid for weekly newspapers, 10 paid for daily newspapers, 30 free titles and over 10 lifestyle magazines. It also has approximately 190 news sites and over 20 other sites, including entertainment site WOW247 and Jobstoday. Its brands include BallymenaTimes, BanbridgeLeader, Belfast News, News Letter, CarrickTimes, ColeraineTimes, Mid-Ulster Mail, Derry Journal, Sunday Journal, TyroneTimes, LarneTimes, LurganMail, Isle of Man Examiner and Yorkshire Post. Its titles span Scotland, the North East, West Yorkshire, the North West and Isle of Man, South Yorkshire, the South, Midlands and Northern Ireland. more »

LSE Price
13.13p
Change
-2.8%
Mkt Cap (£m)
13.9
P/E (fwd)
0.7
Yield (fwd)
n/a

Trinity Mirror plc is a national and regional multimedia content publisher in the United Kingdom, producing and distributing content through newspapers and associated digital platforms. The Company operates through four segments: Publishing, which includes all of its newspapers and associated digital publishing; Printing, which provides printing services to the publishing segment and to third parties; Specialist Digital, which includes its digital recruitment classified business and its digital marketing services businesses, and Central, which includes revenue and costs not allocated to the operational divisions. The Company publishes paid-for national newspapers and paid-for and free regional newspapers, and operates a portfolio of related digital products. Its publishing brands include the Daily Mirror, the Sunday Mirror, the Sunday People, the Daily Record, the Sunday Mail and daily titles in metropolitan cities. It also publishes Metros in each of its key metropolitan markets. more »

LSE Price
81.5p
Change
0.3%
Mkt Cap (£m)
229.1
P/E (fwd)
2.3
Yield (fwd)
7.4



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About Paul Scott

Paul Scott

I trained as an accountant with a Top 5 firm, but that was so boring that I spent too much time in the 1990s being a disco bunny, and busting moves on the dancefloor, and chilling out with mates back at either my house or theirs, and having a lot of fun!Then spent 8 years as FD for a ladieswear retail chain called "Pilot", leaving on great terms in 2002 - having been a key player in growing the business 10 fold. If the truth be told, I partied pretty hard at the weekends too, so bank reconciliations on Monday mornings were more luck than judgement!! But they were always correct.I got bored with that and decided to become a professional small caps investor in 2002. I made millions, but got too cocky, and lost the lot in 2008, due to excessive gearing. A miserable, wilderness period occurred from 2008-2012.Since then, the sun has begun to shine again! I am now utterly briliant again, and immerse myself in small caps, and am a walking encyclopedia on the subject. I love writing a daily report for Stockopedia.com on most weekday mornings, constantly researching daily results & trading updates for small caps. Cheese! more »

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