Since my last post on StollingMolby's thread, I decided to reinvest in Brady (LON:BRY) , the commodity trading software provider, in late 2010, yielding an average entry price at that time of 63p. Before reporting on the AGM, held on 28th April, here's why I decided to reinvest.
The Investment Case
As I commented on the above-referenced thread, I exited because the stock didn't look particularly cheap, based on current/forward P/Es. However, when tracking performance against Edison's forecasts I discovered an interesting phenomenon, as illustrated in the following table:
| Y/E | 2009 | 2010 | ||||||
| Forecast Date | Revenue (£m) | EPS (p) | DPS (p) | Revenue (£m) | EPS (p) | DPS (p) | ||
| 11/03/2009 | 7.60 | 3.70 | 1.30 | 8.60 | 4.40 | 1.40 | ||
| 13/07/2009 | 7.60 | 3.70 | 1.30 | 8.60 | 4.40 | 1.40 | ||
| 08/09/2009 | 7.60 | 3.70 | 1.30 | 8.60 | 4.40 | 1.40 | ||
| 19/01/2010 | 8.10 | 3.70 | 1.30 | 8.60 | 4.40 | 1.40 | ||
| 06/09/2010 | a | 8.20 | 4.80 | 1.30 | 10.40 | 4.60 | 1.40 | |
| 29/11/2010 | 10.60 | 4.70 | 1.40 | |||||
| 20/01/2011 | 10.70 | 4.70 | 1.40 | |||||
| 14/03/2011 | a | 11.10 | 6.30 | 1.40 | ||||
| Y/E | 2011 | 2012 | ||||||
| Forecast Date | Revenue (£m) | EPS (p) | DPS (p) | Revenue (£m) | …
