I Read The News Today Oh Boy! 6-Apr-2018

Friday, Apr 06 2018 by
11

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…

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Motorpoint Group plc is an independent vehicle retailer in the United Kingdom. The Company's principal business is the sale of vehicles, of which are approximately two years old and which have covered over 15,000 miles. The Company sells vehicles from brands representing vehicle sales in the United Kingdom, with models from Ford, Vauxhall, Volkswagen, Nissan, Hyundai, Audi and BMW. The Company operates from over 10 retail sites across the United Kingdom. The Company has a national contact-center dealing with online enquiries. In addition to sales of vehicles, the Company operates Auction4Cars.com, a business to business online auction platform for vehicles. The Company also offers ancillary products to customers, including customer finance packages, vehicle guarantees, insurance products and vehicle protection treatments. more »

LSE Price
221p
Change
0.9%
Mkt Cap (£m)
206.5
P/E (fwd)
11.1
Yield (fwd)
3.6

Gooch & Housego PLC is a photonics technology company, which manufactures optical components and systems. It provides photonics solutions for industrial, aerospace and defense, life sciences and scientific research applications. It operates through four market sectors: Aerospace & Defense, Life Sciences, Industrial and Scientific Research. Aerospace & Defense includes target designation and range finding; guidance and navigation; countermeasures; Space Photonics, and surveillance, displays and secure communications. Industrial comprises the industrial laser market for use in the semiconductor and microelectronic industries, and also includes other industrial applications, such as metrology and telecommunications. Scientific research covers academic and government-funded research, including multi-national projects. The Life sciences business includes optical coherence tomography, laser surgery, microscopy and development and manufacturing of medical and diagnostic devices. more »

LSE Price
1152.5p
Change
2.4%
Mkt Cap (£m)
280.8
P/E (fwd)
21.0
Yield (fwd)
1.1

Vp plc is engaged in equipment rental and associated services. The Company is engaged in providing products and services to a range of end markets, including infrastructure, construction, house building, and oil and gas, both in the United Kingdom and overseas. Its segments include UK Forks, Groundforce, Airpac Bukom, Hire Station, Torrent Trackside, TPA and TR Corp. The UK Forks segment is a hirer of telescopic handlers and tracked access platforms. Its Airpac Bukom segment offers oilfield services and is engaged in provision of specialist compressed air and steam generation services. Its TPA segment provides equipment rental and installation of portable roadways, walkways and stairways. Its Hire Station segment is a provider of small tools, lifting, safety, survey, press fitting and low level access equipment. Groundforce is a rental provider of excavation support systems and specialist products.TR Group provides technology solutions to corporate, industrial and government clients. more »

LSE Price
869p
Change
 
Mkt Cap (£m)
348.9
P/E (fwd)
8.6
Yield (fwd)
3.8



  Is LON:MOTR fundamentally strong or weak? Find out More »


7 Posts on this Thread show/hide all

MrContrarian 6th Apr '18 1 of 7
3

My morning smallcap tweet:

Local Shopping Reit (LON:LSR), Quadrise Fuels International (LON:QFI), Abaco Capital (LON:ABA), Motorpoint (LON:MOTR), Shield Therapeutics (LON:STX), Avanti Communications (LON:AVN)

Local Shopping REIT (LSR) has sold 18 properties for £4.6m, 1.7% below book and 5% below after costs. I hold.
Quadrise Fuels (QFI) as expected, Saudi paperwork not signed for MSAR trial. Holds a slim hope will proceed with a delayed timescale. Maybe they were greasing palms with MSAR instead of the normal paper lubricant.
Abaco Capital (ABA) will go ahead with members' voluntary liquidation and delisting.
Motorpoint Group (MOTR) guides FY rev up 18% and U/L pretax at the upper end of market expectations. A great result. I thought they'd struggle with lower new car sales resulting in lower used volumes pushing through.
Shield Therapeutics (STX) FDA has provided Shield with the necessary guidance to progress submission of an NDA for Feraccru without conducting additional pivotal clinical trials. Also Shield is considering a range of partnering structures in the EU that could likely include upfront payments.
Avanti Comms Group (AVN) good news for once as its heavily boosted (geddit?) high data capacity HYLAS4 satellite is launched. It would be churlish to point out that they are only using a fraction of existing data capacity, so I will.

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Mike888 6th Apr '18 2 of 7
2

VP got approval for the takeover of Brandon hire yesterday

| Link | Share | 1 reply
Mike888 6th Apr '18 3 of 7
1

In reply to post #350478

Sincere apologies, I wondered why I got a thumbs down, after double checking I notice I got my dates muddled, approval for the takeover came in March, not April. I suspect the price hike is that IC tipped VP yesterday. I'll be less trigger happy in future :-(

| Link | Share | 1 reply
andrea34l 6th Apr '18 4 of 7
1

I am a happy, though perhaps slightly frustrated, holder of VP (LON:VP.) and will continue to be so after this update. I bought in June last year at a price slightly higher than current, and with the consistent performance and progress made I consider them a valuation anomaly, especially with such a ludicrously low PEG. I guess the performance will never be stellar in the sector that they operate in, but I am hoping the significant acquisition of Brandon Hire will help - NOTE, the approval for this takeover was received in early March, and not 'yesterday'.

I challenge a couple of comments that you make about VP (LON:VP.) matylda:

  • Trading overall is not 'challenging' - in the International oil and gas sector it is challenging (as reported before), but performance elsewhere is good.
  • Considering the rental sector they are in, debt to me seems extremely conservative.

For what it is worth, Investors Chronicle consistently like the stock, and the market seems pleased enough with the update this morning, up over 5%.

The price trades within a fairly narrow range overall, and the market seems to get excited periodically and then interest wains and the price dwindles over time until the next wave. Yield is 2.5%, better than a bank account even if not outrageous.


| Link | Share | 1 reply
matylda 6th Apr '18 5 of 7
3

In reply to post #350548

Still didn't deserve a thumbs down - I gave you a thumbs up to neutralise :)

Blog: Briefed Up
| Link | Share | 1 reply
matylda 6th Apr '18 6 of 7

In reply to post #350553

Apologies re: VP (LON:VP.)

Yes, it is the specific sector you mention.

Re: the Debt, it's something I don't like and was highlighting it as perhaps a reason for the lack of market interest.

I am still tempted though and it seems like the market is liking it today, I hope your investment does well.

Blog: Briefed Up
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andrea34l 6th Apr '18 7 of 7
1

In reply to post #350573

You're right, sorry Mike... am not myself, recovering from food poisoning :-(

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