Morning all!
Today is a little strange in that I am finding myself overlooking 2 shares I would have otherwise probably looked to take a position in. One, because I don’t have conviction to the sector ( £MOTR) , the other ( VP (LON:VP.) ) because I believe I have missed something the rest of the market has not. Even Gooch & Housego (LON:GHH) looks attractive and in a Bull market I would probably even consider opening a small position here too.
Rightly or wrongly - I think I am just more willing to be hanging onto that 25% or so Cash at present!
Motorpoint ( Motorpoint (LON:MOTR) ) – 217p – £217.1m – PER 10.8
Trading Update For The 12 Months To End March 2018 – Revenue to be up 18% as H1 growth rate has continued into H2, Underlying PBT to be at the upper end of market expectations. Recent openings performing in-line. Confirms commitment to £10m buyback programme. Confident on the future.
This is attractive but I know I don’t have conviction in the sector at present, I am going to remove it from my Watchlist and go Neutral.
Gooch & Housego ( Gooch & Housego (LON:GHH) ) – 1320p – £323.6m – PER 22.9
Trading Update For The 6 Months To End March 2018 – In-line, expecting FY to be in-line with a typical higher H2 weighting. Order book is up 27.1% (at a record level) on this time last year.
Still quite like this but can’t see it being anything more than fairly priced here.
VP ( VP (LON:VP.) ) – 820p – £329.3m – PER 8.75
Trading Update – Challenging but expecting FY to be In-line.
I still quite like this but there’s 2 stand-outs, a new acquisition integration in progress and Net Debt greater than 30% of Market Cap. The strange one here is the EPS CAGR is circa 15% - That’s almost double the 8.75 PER, the PEG reflects this, it’s 0.57! I’m almost talking myself into investing here but just can’t justify it - I just get the feeling I…
