Best Investment Idea for 2018?

Friday, Dec 22 2017 by
25

This time of year is ideal to fine tune an investment strategy and to re-weight accordingly. It got me thinking about my best investment idea for 2018, or in other words the company with the most potential to reliably  increase in value in the coming year. My choice is Taptica International (LON:TAP)  - I hold.

Tapica’s business is pesky mobile phone advertising optimisation. The market for mobile advertising grew by +17% in the first half of 2017, so it’s a growing market. Taptica is up with the technology too, using Machine Learning to monitor changing behaviour and consumer trends. Taptica International (LON:TAP)  operates on a no £sale/no fee basis, so it is very aligned to its customers sales success.

The ROCE and ROE are an astounding 39% and 38% respectively. Stockranks rate it to with a Q score of 99 and a SR of 86. Add to this a F-Score of 9 and a PE of just 12 and Taptica International (LON:TAP) looks a bargain. The downside is a question mark over Israeli accounting rigor, but it is this doubt that makes its price so attractive.

In the absence of RNSs, other best ideas for the coming year are welcome?


Maybe controversially I have added the word reliably.... increase in value  to the 1st paragraph to avoid blue sky outfits where high hopes, rather than high probability metrics reign.


Filed Under: Stock Picks,

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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. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. 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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Taptica International Ltd offers data-focused marketing solutions that drive execution and brand insight in mobile, leveraging video, native, and display to reach the users for every application, service, and brand. The Company’s technology is based on artificial intelligence and machine learning at big data scale. The Company works with more than 450 advertisers, including Amazon, Disney, Facebook, Twitter, OpenTable, Expedia, and Zynga, and more than 50,000 supply and publishing partners worldwide. more »

LSE Price
323.05p
Change
-3.6%
Mkt Cap (£m)
227.6
P/E (fwd)
8.6
Yield (fwd)
1.6

Somero Enterprises, Inc. is a manufacturer of laser-guided equipment. The Company's equipment automates the process of spreading and leveling volumes of concrete for commercial flooring and other horizontal surfaces, such as paved parking lots in North America. The Company's products include S-22E, S-15R, S-15M, STS-11M, S-840, S-485, CopperHead XD 3.0, Mini Screed C, PowerRake 3.0, 3-D Profiler and SiteShape. Its Somero Floor Levelness System monitors Laser Screed performance, operator performance and reports alert percentages of issues. The Somero SiteShape System allows for grade shaping automatically using users' motor grader, dozer or other grading machine. The Somero 3-D Profiler System allows automatic paving of contoured sites using a Somero Laser Screed equipment. The CopperHead XD machine encounters applications, such as chaired rebar, low slump and poor subgrades. The Somero eXtreme Platform (SXP) allows users use their Laser Screed equipment. more »

LSE Price
369p
Change
1.1%
Mkt Cap (£m)
205.5
P/E (fwd)
12.2
Yield (fwd)
5.5



  Is LON:TAP fundamentally strong or weak? Find out More »


71 Posts on this Thread show/hide all

VegPatch 2nd Jan 52 of 71

I really don't think You need a W8 BEN for Somero.
It is AIM listed.
(However each stockbroking platform may be different)

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herbie47 2nd Jan 53 of 71
1

In reply to post #291678

Well I had to do one with my broker. Somero Enterprises Inc (LON:SOM) is a US company.

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snickers 2nd Jan 54 of 71
6

Some people here may have pitched in on the UKStockchallenge website's year-long competition. Winning this entails a lucky oil strike, but I keep believing there's some wisdom in it. So here's a plot made up from this year's entries, last year's performance, and this site's stockranks..

Y axis: last year's profit mixed up with the average stockrank of the choices each entrant has made this year
X axis: the average popularity of the choices each entrant has made
colour: the average stockrank
opacity: last year's profit. So colour and opacity are the y axis position broken down.


5a4c137bb3f0bstockchall2018x.png


So Lord Gnome is clearly the one to follow. He went for IMM, SQZ, DGOC, PDZ, DIG

Or, if you favour the lone wolf, maybe Daz is your man: HUM, CMCL, DT, NTBR, THS

Hope that helps!

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JohnEustace 2nd Jan 55 of 71
2

In reply to post #291678

Somero Enterprises Inc (LON:SOM) are incorporated in Delaware so a W8 BEN is required. The dividends are paid from the US.

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willhampson 3rd Jan 56 of 71
2

A W-8BEN is definitely needed if purchasing Somero Enterprises Inc (LON:SOM) as a U.K. resident through a U.K. based broker.

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johnsmith68 4th Jan 57 of 71

In reply to post #291178

Thanks for the information - I'll take a look at Saxo.

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iwright7 4th Jan 58 of 71
1

I see Finncap their house broker have have lifted Taptica International (LON:TAP) FY 2017 earnings expectations and target price from 500p to 550p. Nice. Ian

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iwright7 8th Jan 59 of 71
2

Finncap have woken up this morning and upgraded Somero Enterprises Inc (LON:SOM) because of the Trump Corporation Tax reduction. Their target price is up +20% from 350p to 420p. Hmm.

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VegPatch 8th Jan 60 of 71
1

luckily we woke up to this before Xmas !

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vik2001 8th Jan 62 of 71

In reply to post #294308

thank you VegPatch for that article. it alerted me to this and I got in at a good entry point thanks to your post.

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VegPatch 8th Jan 63 of 71

I never make recommendations, but I am glad I alerted you to it.

Trading update in next few days I think.

I am hopeful that things have continued to progress for Somero in H2 17 but as ever we shall see.

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iwright7 8th Jan 64 of 71
1

Vegpatch,

Because Fiincap is the Somero Enterprises Inc (LON:SOM) house broker, it seems inconceivable that they would upgrade their target price by +20% a few days ahead of a likely trading update, unless they knew the forthcoming trading results are in line, or better. Looks to me like they are trying to play catch up and today's upgrade timing is a very strong buy signal.

Extra:  Its good to write one's reasoning down - It has convinced to to increase my holding this afternoon to become my 3rd biggest position.  Should know soon whether this is correct?    Ian 

| Link | Share | 1 reply
VegPatch 8th Jan 65 of 71
1

In reply to post #294358

Hi Ian,
That thought had also crossed my mind. There are supposed to be strict chinese walls between the corporate finance / corporate broking side and equity sales and research. I think that this is a question of timing. A number of companies have come out with guidance on their US tax liability going forwards (Somero is not one of them yet). I suspect the analyst is playing catch up, knowing that there is a trading statement due anytime soon. They really shouldnt know anything material regarding trading. So personally I hope the trading is good but in this case I think the analyst is playing catch up with the share price rather than leading it. But who knows.
VP

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iwright7 8th Jan 66 of 71
2

Vegpatch
There may be Chinese walls, but what about the Chinese whispers in such a close knit community. I am convinced that acting on inside information is one of the reasons that Momentum and buying at a 52 Wk High works.

Howard Lindzon in a recent Meb Faber podcast uses the analogy of the Great White Shark and the Pilot fish. Howard is a Pilot fish, following beside the Great White. He likes this approach as; “there’s so many ways the markets are rigged that I think it’s best to just follow along the trends.” 


Worth a listen http://mebfaber.com/2017/12/06...

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iwright7 12th Jan 67 of 71
1

2nd Best Idea Somero Enterprises Inc (LON:SOM) Trading update today....

Excellent  H2 means a record 2017 so; "EBITDA will be comfortably ahead of market expectations of $26M". Confident 2018 outlook bodes well.   Will be interesting to see what Finncap predict next?

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iwright7 12th Jan 68 of 71
2

Somero Enterprises Inc (LON:SOM) - Finncap update - Target price is up again today to 450p, which is a total of +28% in a week. Nice if it happens?

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vik2001 12th Jan 69 of 71

you did well to top up again before this. I just topped up again this morning. results look excellent

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daveinthelakes 16th Jan 70 of 71

I mentioned N4P as my best hope for the year (post 12)-

" I am also very hopefull for £N4P which I think could turn out to provide the biggest percentage gain in 2018 although a smaller holding than the other two as it is at an earlier stage of development. I bought £N4P twice in November and keep thinking about increasing again."

The price is volatile but is up circa 30% today. Average daily turnover is 900,000 shares but by 10:30 it was 3.5M on no news. This looks too big a price rise/turnover to be mere speculation so it looks to me as if somebody knows something they shouldn't?

I wouldn't suggest jumping in at this level (16p) but has anybody heard anything? Turnover at time of posting now nearly 4M.

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iwright7 28th Mar 71 of 71

Taptica International (LON:TAP) is in the middle of another down day and my remaining holding has been sold. This weeks interim's have halved the SR score, the F Score has dropped to 5 and its now classified as a Falling Star.
Thankfully my No 2 2018 NAP choice Somero Enterprises Inc (LON:SOM) is doing well. Hey Ho, Some you win and.... Ian

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