I Read The News Today Oh Boy! 5-Sep-2017

5th Sep '17 by matylda

14 comments 8010 reads

Morning All!

Sorry about the delay - So much to get through today - Covered 9 shares!

A & J Mucklow PLC (MKLW) – Preliminary Results For The Year Ended June 2017 – I’m not sure these results are as good as they should be! They seem to reflect an across the board growth of about 10%. On a PER of 20, I would suggest the market was expecting more here. Could be one for those seeking income without any great expectations of growth.

Alpha FX (AFX) – Interim Results 6 Months To End June 2017 – Lots to like here…

This has doubled since floating in April this year – Seems justified based on these results but is it now due a breather on a PER of 32?

Alumasc (ALU) – Final Results – Full Year To End June 2017 – Results one can expect from this rather consistent “building products, systems and solutions company”.

This statement by the Chief Executive is encouraging “Our order books and the level of specifications and enquiries in the pre-order pipeline remain strong across the group. Therefore, the Board believes Alumasc can continue to grow like-for-like revenues in its 2017/18 financial year”.

Has Cash (about 10% of Mkt Cap), pays a nicely covered Dividend of 4%+, has an ROCE of almost 20% and it has healthy Revenue and Profit growth (since 2014). On a PER of 7.75, this looks decent value, for the sector, at this level.

Craneware (CRW) – Results For Year Ending June 2017 – Double digit Revenue and Profit growth reported here (PBT and EPS up 20%).

I like the steady increases in Revenue, Profits and EPS here, 5%, 10% and 10% (CAGR) or thereabouts, respectively. The ROCE is also impressive, consistently around 25% or so. There’s a small (1.5%) Dividend that’s well covered and it’s also got Cash (more than 10% of Mkt Cap). So, there’s lots to like here – The issue for me is the PER of 30! This seems in-line with the Stockopedia Value rating of 11. At this price it just seems a bit overvalued to me.

Lighthouse (LGT) – Interim Results 6 Months To End June 2017…

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Asagi

5th Sep '17

Nice work, matylda.

I would add Belvoir Lettings (LON:BLV): https://www.investegate.co.uk/belvoir-lettings-plc--blv-/rns/interim-results/201709050700037933P/

Group revenue up 15% to £4,921,000 (H1 2016: £4,293,000)
· 47% increase in Management Service Fees (MSF) to £3,796,000 (H1 2016: £2,580,000)
· 62% increase in profit before tax to £1,731,000 (H1 2016: £1,071,000)
· H1 results reflect full six months period beneficial impact of Northwood acquired on 7 June 2016 and the franchising out of six corporate offices since 30 June 2016
· Basic earnings per share of 4.1p (2016: 2.6p) and adjusted earnings per share of 5.0p (H1 2016: 3.5p)
· Interim dividend of 3.4p, consistent with prior year with dividend cover now at 1.2 (H1 2016: 0.7)

helped by an acquisition. Looks like a yield of 6.6%, P/E around 11. Outlook isn't great and of course there are huge worries over the impact that banning letting agent fees will have.

Asagi (no position)

Rusty2

There are 2 more:
IQE (LON:IQE) I thought the interims were disappointing, profit down 27%, considering the shares have gone up 150% since the full year results, shares were down 12% now down 7% on the day.

£G4M trading statement, revenue up 44% seems pretty good. Shares down 2%.

matylda

Thanks Guys - Just ran out of time...

Games Workshop (LON:GAW) good trading statement, shares up 10%.

Carcosa

I posted this on my twitter account prior to market opening "IQE (LON:IQE) If share price opens -ve then shows retail punters can't read an RNS and had no idea of why they invested in the first place."

FY upwardly revised expectations remain in line. But any investor considering that is the reason to be invested needs their head examining. Pure punters, however, will likely see that as a reason to sell.

Share price now in positive territory at time of posting

mcfly46

if only everyone was like you, what a place world would be

janebolacha

Same thing happened at the time of the last results from IQE (LON:IQE).
It was a great opportunity to buy. then at below 50p!
There were, then as now, the very same kind of comments about "poor results"
and the failure to look even a few months ahead.
A year from now, the SP is likely to be still much higher, imo.

FREng

Spectra Systems (LON:SPSY) has a sibling: Spectra Systems (LON:SPSC) with the same dividend. The difference seems to be some historic restrictions on trading the shares of a precursor company in the USA. Spectra Systems (LON:SPSC) (which I hold) has been catching up with SPSY in the last few weeks..

Yes but the spread is very wide on Spectra Systems (LON:SPSC). Does not even seem to be available from my broker.

Yes, it's odd how wide the spread is and how Spectra Systems (LON:SPSC) has moved in recent weeks. I haven't experimented with posting a buy limit bid on the public board, to attract sellers who are put off by the low offer. I can't do that online through TD, presumably because of the "partial fill" issue and associated costs.

I wonder whether the company will retire SPSC, maybe through a 1 for 1 tender offer of SPSY. The separate listing must have some associated costs.

I wonder if Spectra Systems (LON:SPSC) is to do with employees share options? There are only 594,838 shares.

Here's an "explanation" from ADVFN:

Spectra Systems Corporation has two lines of Common Shares which trade on AIM, Restricted (SPSC) and Unrestricted (SPSY), and the aggregate market capitalisation of the Company is Â£9.89 million. these shares are now common stock available to trade. Only 691k left so another part of the tidy up will soon be completed.It has no bearing on the m'cap of SPSY as far as i'm aware. Here's an old piece of news.

Shares Not in Public Hands In the terms of the AIM Rules published February 2010 and insofar as it is aware, at 10 December 2013, 12.69% of the Companyâ€™s AIM securities were not in public hands. Restrictions on Transfer of AIM Securities 4,640,894 Ordinary Shares (AIM:SPSC) trade with the following restriction: The newly issued common shares, $.01 par value per share, of the Company ("Common Shares") which were issued pursuant to an exemption from registration under Regulation S promulgated under the US Securities Act of 1933 (the "US Securities Act") and certain previously issued Common Shares which were issued pursuant to an alternative exemption from registration promulgated under the US Securities Act are restricted securities as defined in Rule 144 of the US Securities Act and may not be offered, sold or otherwise transferred except pursuant to an effective registration statement or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act. The remaining 40,610,476 Ordinary Shares (AIM:SPSY) trade without transfer restrictions.

Info from the RNS of 5 May 2017...

Accordingly the Company will apply for 32,002 Shares to be admitted to trading on AIM and it is anticipated that trading in such shares will commence on 11 May 2017 ("Admission").

Following Admission the Company's issued share capital will comprise:

585,818 shares in the Regulation S stock line ISIN number USU8457D1091 (AIM:SPSC);

and

44,811,913 shares in the Unrestricted line ISIN number US84756T1060 (AIM:SPSY).

27th Oct '17

Stadium (LON:SDM) continues to drift down. It looks safe to me, but maybe someone knows something. If the broker forecast is right, this looks like a decent buy at these levels.

jonno

31st Oct '17

I hold Stadium and had been tempted to take profits at around 130; in retrospect I missed a trick. I am now around break even. A trailing stop loss would have prevented my current dilemma, but we are where we are.

I have read the recent interim report again and Simon Thompson's latest review in Investors Chronicle and cannot see any obvious reason for the share price weakness, although it is always difficult to avoid confirmation bias In fact there are several positives, in particular the increased order book.

However trading volumes have been comparatively large of late and it may just be that there are some negatives of which I am unaware. However given what is known the shares do seem very good value, so pending any announcements I shall sit tight and await developments.

I Read The News Today Oh Boy! 5-Sep-2017

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Matylda

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