A quiet morning so for a change I am quite early in posting…
Epwin (EPWN) – Half Year Trading Update – A bit of a profit warning here from this low maintenance building products manufacturer due to issues with some customers (accounting for 5% of revenue) – “the Board's current view is that the outturn for the full year ending 31 December 2017 will be marginally below market expectations” with perhaps worse to come with the mention of challenging market conditions. This company has a Stock Rank of 95 and is on a PER of 6.62. There’s a lot to like here, including the ROCE 20%+ and a well covered dividend of about 7%. Also mentioned in the report “We are confident in continuing our record of strong cash generation and our ability to offer an attractive dividend to shareholders” – If you believe this and there’s a dip in price today this could be, as Stockopedia classifies it - An “Adventurous” income play. There's more comment here.
Lookers (LOOK) – Unaudited Results To End June 2017 – Quite an upbeat, but not exactly inspiring, report for this motor retailer - Revenue up 5% and Profits / EPS up 10%+, Interim Dividend increased 10%. I think, if I was going to get involved in this sector, I would rather Marshall Motor Holdings (MMH) from yesterdays report. Paul prefers Vertu.
Robinson (RBN) – (Was expecting some but couldn’t find any news) - I quite like some of the high level data here for this small plastic and paperboard company on a PER of 12. What don’t I like - The lowish margin and ROCE and the 20% of Mkt Cap debt. What I really don’t like – That spread of 700bps+ ouch (it’s so hard to get involved when the spread is this LARGE – I for one hate to see my investment down 5%+ straight after pressing the Buy button – Granted we sometimes get a better Entry but we also have to Exit at some point too!). Anyway, as well as providing a price, why can’t market makers be forced to provide a decent spread of, say, less than 1% at all times – That would make these companies much more accessible.
What’s of interest today? That potential Epwin income play!
All input,…
