I Read The News Today - 9-Aug-2017

Wednesday, Aug 09 2017 by

Thanks for the contributions and positive feedback all - Have to say added much value to my day, if only for the additional interaction to alleviate some of the isolation us home investors accept as part of what we do.

So, here we go with Day 2, all being well will be back tomorrow.

Interserve (IRV)Half Year Results To June 2017 – This is a perfect example of an update I just avoid, it’s just a mess to me. Revenue pretty much unchanged, Profits and EPS substantially increased (from a reasonable LFL loss to a now reasonable LFL profit). On the look of it it’s a great improvement, one for the more experienced investor though, not me!  (Stockopedia flags it as a Value Trap – Down 50% from 12 month high)

Lok’n Store (LOK)Pre Close Trading Statement – Revenues/Occupancy up about 6% LFL (classed as “excellent”!) – On target to add 26% more capacity by end 2018 – On a PER of 24 not sure there’s much to excite here!

Quantum Pharma (QP.)Half Year Trading Update – It’s losing money and has debt – Would have liked this report to refer to, in some way, the fact it is projected to be profitable next year. Not sure how the market will take this update but it doesn’t interest me.

SCS (SCS)Trading Update – In line with expectations, overall order growth of 1.4%. Seems strange to be mentioning 2 year LFL as it’s better than the 1 year. Seems steady enough and Stockpedia likes it, and why not, a Speculative Super Stock with a Stock Rank of 96. A PER of about 7, ROCE 30%+, a stonking 9% Dividend (reasonably covered) and about 50% Mkt Cap of cash! Most recent SCVR update (and additional member comment) here raises some red flags – Mainly related to the value of the cash, the quality of the products, the fact it may be paying too much in dividends instead of preparing for a potential downturn (bolstering the books) – Suppose in line with the update mentioned above, timing is probably everything here.

Share (SHRE)Half Year Results To June 2017 – Results ahead of management expectations and outperformance against it’s peers. But profit wise, cannot…

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Interserve Plc is a United Kingdom-based support services and construction company that offers advice, design, construction, equipment, facilities management and frontline public services. The Company provides a range of integrated services in the outsourcing and construction markets. It operates through three segments: Support Services, Construction and Equipment Services. The Support Services segment focuses on the management and delivery of operational services to both public and private-sector clients in the United Kingdom and internationally. The Construction segment offers design, development, consultancy and construction services for building and infrastructure projects. The Equipment Services segment operates globally, designing, hiring and selling formwork and falsework solutions for use in infrastructure and building projects. It provides outsourced services in sectors, such as hospitality, leisure, education, defense, retail, and oil and gas across the Middle East region. more »

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Lok'nStore Group Plc is engaged in providing self-storage serviced and document storage and management services. The Company's segments include self-storage, and serviced archive & records management. It offers self-storage to both household and business customers at its centers. Its personal storage includes storage rooms, student storage, forces and services, and space estimator. Its business storage includes pallet storage, warehouse space, self-storage archiving, flexible office space, multi-site business storage accounts, and eBay and online business. It operates approximately 39 self-storage centers and over two serviced document stores in Southern England. Its personal and household self storage is available at various locations, such as Aldershot, Basingstoke, Bristol, Crawley, Eastbourne, Fareham, Harlow, Swindon and Maidenhead. more »

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Quantum Pharma Plc is a pharmaceutical developer, manufacturer and supplier to the retail pharmacy, pharmaceutical wholesaler, hospital and homecare markets. The Company's core business is the manufacture, procurement and supply of unlicensed medicines (specials) and special obtains to the United Kingdom pharmacy chains. It operates through three segments: Specials; Niche Pharmaceuticals (Niche), and Medication Adherence (MA). The Specials segment engages in the manufacture, source and supply specials to pharmacies, pharmaceutical wholesalers, hospitals, and other specials suppliers throughout the United Kingdom and overseas. The Niche Pharmaceuticals segment develops and supplies nice pharmaceuticals, provides development and regulatory services, and out-licenses products and dossiers to third parties across Europe. The Medication Adherence segment provides products and services designed to provide adherence to medication regimes. more »

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17 Posts on this Thread show/hide all

Edmund Shing 9th Aug '17 1 of 17

Nice job matylda, very useful quick summary! Saves me trawling thru the RNS announcements...

Blog: The Idle Investor
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Nicowilson 9th Aug '17 2 of 17

Really good. Thanks Matylda

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PeterW 9th Aug '17 3 of 17

Agreed, Nice sensible summary. Thanks.

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dfs12 9th Aug '17 4 of 17

I like the look of the half year results from Legal & General (LON:LGEN). Already great value but looks like the company is expecting further growth in the next 5 years and pays a 5%+ divi. Stockopedia likes it:
SR 95
V 94
Q 51
M 92
(Growth 83)

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Ramridge 9th Aug '17 5 of 17

Re. Telit Communications (LON:TCM) CEO suspended concerning
" speculation regarding historical indictments in the United States of America of Telit's Chief Executive Officer, Oozi Cats"
Stock is down some 24% as I write.

I think people who hold shares in TCM now need to consider the possibility that their recent set of accounts may well be a piece of fiction.

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matylda 9th Aug '17 6 of 17

In reply to post #206141


At least readers got plenty of warnings from the SCVR - Even the latest update here!

Blog: Briefed Up
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Soundbuy 9th Aug '17 7 of 17

Well played and thanks for taking the time....

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bestace 9th Aug '17 8 of 17

Ab Dynamics (LON:ABDP) - Tim Rogers is stepping down from the CEO role having only stepped up to the top job in October last year. I thought he was supposed to be the Annointed One to take over from the ageing Chairman/founder so the timing seems a bit odd despite it being communicated as a "smooth handover".

The share price hasn't budged an inch.

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vik2001 9th Aug '17 9 of 17

stock spirits seem to be on a turnaround:

· Total revenue €119.8 million, an increase of 3.3% (2016: €116.0 million)

· Operating profit €16.5 million, an increase of 32% (2016: €12.5 million)

· Profit after tax €11.7 million, an increase of 23% (2016: €8.4 million)

· Basic EPS 6 € cents per share, an increase of 50% (2016: 4 € cents per share)

· Interim dividend 2.38 € cents per ordinary share, an increase of 4.8% (2016: 2.27 € cents)

· EBITDA1 €22.0 million, an increase of 23.4% (2016: €17.9 million)

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willhampson 9th Aug '17 10 of 17

There's a decent update from Water Intelligence (LON:WATR) this morning. Not sure if its on many people's radars; its essentially a company that specializes in preventing water leaks (swimming pools, pipes etc). The update confirms that the impressive revenue growth is continuing (circa. 50%). It's an interesting company, in an area that to me makes sense. We have increasing water shortages globally, particularly in the U.S. where the majority of its revenues arise. They also have a growing presence in the U.K. and Aus. I like its model in franchising out its processes and then later acquiring those franchisees that are performing well. Main downside with the stock is the spread can be terrible (as high as 10%). I believe Graham reported on it in February this year.

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smatthews1 9th Aug '17 11 of 17

Scs might have cash, but they will need that to weather any rough rides in trading considering their poor operating margin of 3.5%. Their products are also mediocre, not for me that one.

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monions 9th Aug '17 12 of 17

Strix (KETL).
This is more for yesterday's news as it is an IPO with first trading yesterday. However, I could not find any trading information for it yesterday, and it's still not listed here.

Strix are an industrial company based in Isle of Man, focused on kettle controls as well as all manner of heating and hot-water safety products. They have been running since the mid-50's and were recently held by private equity. The IPO for 190m shares at 100 each gave them £190m to repay some debt and fund diversification into new markets that can use their core competency.

The offer appears to have been only made available to II's. Yesterday's trading started significantly up on the offer price at 130(135). It's settled today at around 131/133. PER is around 9-10 at this level, with a prospective dividend of 7%.
The release is here - https://www.investegate.co.uk/strix-group-plc--ketl-/rns/admission-to-trading-on-aim/201708080700063308N/

More information, and admission document at - https://www.strixplc.com/

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herbie47 9th Aug '17 13 of 17

In reply to post #206231

SCS (LON:SCS) They will probably get hit by inflation due to fall in £ on imported goods, business rate rises and wage rises, 3.5% margin is very low margin, any downturn in sales and they will have problems, too risky for me and I'm out of that sector anyway.

Stockopedia also has Bonmarche Holdings (LON:BON) as a superstock.

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paraic84 9th Aug '17 14 of 17

Another company in the wider news today is Spire Healthcare (LON:SPI). They are never really mentioned on Stockopedia, possibly because of the larger market cap. Anyway they are caught up in the Ian Paterson breast surgeon scandal as they granted him practising privileges and they are now saying they are not liable to pay compensation to private patients who were victims. Today they have announced they are suing the NHS on the basis that the health service should be held responsible for private sector compensation. https://www.hsj.co.uk/quality-and-performance/exclusive-private-hospital-firm-takes-nhs-to-court-over-rogue-surgeon/7020306.article

What I am surprised by is that Spire Healthcare (LON:SPI) do not appear to have updated shareholders since the Ian Paterson case on any of the financial and non-financial issues that have or may arise. They could potentially be liable for a lot of compensation and if I was a shareholder I would want to know what the company is doing to put its house in order. Today's decision by their lawyers suggests to me they could be worried about their own potential liability so are going on the attack.

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Deeping 9th Aug '17 15 of 17

In reply to post #206254

Key risks for me in the Admission document include over reliance on a few key customers, the top 10 account for 66%of revenues and the largest customer 19%. Also most manufacturing at one site in China. On the other hand not many competitors in Regulated Markets, maybe just one major competitor. As I understand it Strix received nothing of the 190 million proceeds, the benefit goes to the Investor Group. Perhaps one to keep an eye on, no need to rush in.


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iwright7 9th Aug '17 16 of 17

Another 6p worth from my notes on this FT250 Engineering company - Spirax-Sarco Engineering (LON:SPX) - I hold

SPX: Historically trades on 25x PER, so great things are expected. Strong H1 with +25% sales and + 31% adjusted EPS which has been greatly aided by acquisitions and $ exchange rate. The H2 $ exchange rate impact and outlook is cautious. Two very recent acquisitions offer significant cross selling and cost rationalisation opportunities which should pay off medium term. Priced about right? Wait and see what the revamped Stocko ratios reveal?

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Richard Goodwin 9th Aug '17 17 of 17

In reply to post #206131

Thanks @dfs12. It's great to have attention drawn to a large cap. Many of us downs so much time small cap hunting that we forget about the small number of firms which represent the bulk of capitalisation.

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