Synergy Health (LON:SYR) (1062p and 3.7% of JIC Portfolio) I awake this morning to see that the Investors Chronicle magazine has a put a sell note on Synergy. The argument seems to be mainly based on valuation which it believes has got ahead of its growth prospects.
The Company is issuing its third quarter trading statement on Monday 11th February but having had a quick re-read of the November interim statement my hunch is to hold on. The stock has performed well since November's statement but on consensus forecasts is valued at 16.4x Aril 2013 earnings for 26% growth and 14.7x April 2014 earnings for 12% earnings growth. Whilst this is no longer screamingly cheap it also doesn't seem to me to be overly expensive. Fingers crossed for Monday!
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