Stock of the Month - SpaceandPeople

Wednesday, Jul 11 2012 by
3

Spaceandpeople (LON:SAL) markets, sells and administers promotional space in high footfall venues across the UK, including shopping centres, theme parks, retail parks and airports. It offers a comprehensive service covering everything from consultancy to the provision and management of retail merchandising units in shopping centres.

A five year agreement with Land Securities started in April 2012 and provides SpaceandPeople with an additional weekly footfall of 2.4 million shoppers in 12 venues including many of the leading UK shopping centres including The Bridges (Sunderland), White Rose (Leeds), Gunwharf Quays (Portsmouth) and Overgate (Dundee).

All good company stuff but what about the numbers?

Over the years I have developed a methodology focusing on five fundamental factors; price, earnings, growth, net debt and cash-flow, which help me follow Warren Buffet’s two rules of investing:

Rule 1: Don’t lose money.

Rule 2: Don’t forget rule number 1!

If you lose 50% of your money, you need to make 100% to get it back. That’s a lot of hard work. I know. Of my first three stocks two went bust and one was taken over for a fraction of what I paid for it. I bought them because of the hype about the future and because they were going to make me rich. They were valuable in terms of learning but that’s all.

My method is intentionally boring and has a layer of in-built safety (a margin of safety if you like) so I don’t have to worry about short-term fluctuations in value. When investing based on fundamentals you don’t have to worry about Mr Market’s irrational mood swings, although price volatility can help you time your entry and pick a good stock more cheaply.

One of the key things I have learnt is that your investment style needs to fit your personality. For me it’s important that I have real conviction when buying a stock so I don’t panic during market corrections, unless the facts change of course.

Back to SpaceandPeople


SAL has a PE ratio of 10.9 (forward P/E of 8.1) and a dividend yield of 4.5% that is more than twice covered. Earnings are forecast to grow at 24% for the 12 months to December 2012. For a company that is forecast to grow its earnings by 24% year on year, a P/E of 10…

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SpaceandPeople plc is a United Kingdom-based media specialist company. The Company is engaged in marketing and selling of promotional and retail licensing space on behalf of shopping centers and other venues throughout the United Kingdom, Germany, France and India. The Company's segments include Promotional Sales, Retail, Head Office and Other. The Company markets, sells and administers promotional space in a range of footfall venues across the United Kingdom, including shopping centers, theme parks, garden centers, retail parks and airports. The Company offers a service covering from consultancy services to the provision and management of retail merchandising units in shopping centers. It enables venues to market, administer, promote and sell their promotional space. Its subsidiaries include MacPherson & Valentine Limited, SpaceandPeople GmbH, Retail Profile Holdings Limited, POP Retail Limited, Retail Profile GmbH, SpaceandPeople India Pvt Limited and S&P+ Limited. more »

LSE Price
37p
Change
 
Mkt Cap (£m)
7.2
P/E (fwd)
8.0
Yield (fwd)
6.1



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About ValuableGrowth

ValuableGrowth

I am a mathematician, Chartered Accountant and experienced private investor who is passionate about preserving and growing capital through successful investing. My website www.valuablegrowth.com details my portfolio as well as the rationale behind each investment. www.ValuableGrowth.com more »



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