I Read The News Today Oh Boy! 6-Mar-2019

6th Mar '19 by matylda

8 comments 2274 reads

Morning all!

Anpario ( Anpario (LON:ANP) ) – 340p – £78.7m – PER 19.5

Results For The 12 Months To End December 2018 – Revenue down slightly but PBT is up 34% with EPS up 31%, the FY Dividend is up 11% and Cash is stable at £12.9m. Trading for the current year is ahead of 2018 but concerns regarding Brexit and Afircan Swine Fever.

There may be value here I will keep an eye out for revised Broker notes.

Batm Advanced Communications ( Batm Advanced Communications (LON:BVC) ) – 46.5p – £188m – PER 102

Results For The 12 Months To End December 2018 – Looks good and due to a substantially higher year end Order book 2019 Revenue and EBITDA already expected to be ahead of market expectations.

Still seems to be heading in the right direction, I will be keeping an eye out for revised Broker notes here – Would be hopeful that PER looks more realistic now!

Cambria Automobiles ( Cambria Automobiles (LON:CAMB) ) – 65p – £65m – PER 8

Trading Update For The 5 Months To End January 2019 – Ahead of the corresponding period last year - No firm guidance on FY.

Still seems too much caution round this sector (Br**it) but doesn't seem to be "blood on the streets yet". I remain on the side-lines in relation to the sector in general at present.

Costain ( Costain (LON:COST) ) – 397p – £425m – PER 10.2

Results For The 12 Months To End December 2018 – Revenue down, Reported PBT and EPS both down slightly but the FY Dividend is up 8%. Record higher quality Order book at year end (£4.2bn).

There's perhaps some value here for the Yield and potential for modest growth – Not enough for me though.

Headlam ( Headlam (LON:HEAD) ) – 418p – £353.7m – PER 11

Results For The 12 Months To End December 2018 – Revenue and EPS up 2.3%, Underlying PBT up by an even smaller amount. Net Cash at £36.7m (£35.3m last time) but includes acquisition spend…

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andrea34

6th Mar '19

Get well soon, Matylda.... plenty of hot fluids and rest!

I'm away from home, so difficult to access a full news feed. DS Smith (LON:SMDS) have announced a very positive update, but in addition the disposal of their plastics division which I feel has been a big cause of recent poor momentum both in terms of environment shift but also high debt - the disposal, at £585m, should resolve both of those things, with only marginal eps dilution. On a rating of less than 9 perhaps this could help the price. I hold (having bought at 350ish a few months ago)... though I expect this stock isn't racy enough for most...

MrContrarian

My morning tweet: Smallcap small beer.

Cambria Automobiles (LON:CAMB), Batm Advanced Communications (LON:BVC), Thinksmart (LON:TSL)

Cambria Automobiles (CAMB) first 5 months 'trading performance' up and LFL up. New car sales down 10%. Used car sales down 11% but margin up. Aftersales up 6.7%. They call private car buyers 'guests'. If I visit do I get to sleep overnight in a Bentley?
BATM Advanced Communications (BVC) FY EPC 9c (6c). Guides 2019 revenue and EBITDA growth ahead of market expectations.
ThinkSmart Limited (TSL) return of capital and dividend totalling 7.544c (Australian) = 4.04p.

Kenncam

Thanks Matylda, love these reports. Format is great and huge amount of info plus your opinion in such a concise manner.

William K

Thanks Matylda.

Costain (LON:COST) has a price to free cashflow of 607 which seems to be a good reason for not buying.

mrosbiston

TT electronics (LON:TTG) - its a complicated one. Strategy looks to be to continue to build through acquisition.

On a statutory basis, could be argued the company benefited from some translation adjustments and actuarial remeasurements in 2017 - and has had the opposite in 2018, hence the under-performance.

The GMP equalisation hurt by around £5.8m and there was also a significant amortisation of acquired intangibles (seems high to me). If acquisitions in 2019 could be a bit smaller, ideally without pension hangovers - and you have a positive integration (sounds like it is going well) - then 2019 could be a good year.

matylda

Thanks guys, slowly on the mend :)

DS Smith (LON:SMDS) a little too big for me so can't really comment there.

Costain (LON:COST) - Actually dug a little deeper there this morning - I updated my note as "Looks undervalued on a 1 Year and 2 Year view taking into account the Net Cash (about 20% of Market Cap) and well covered 4%+ Yield - Income with modest growth potential."

TT electronics (LON:TTG) - Thanks, I think I will just leave this to those smarter than me. I do this sometimes as with such a choice out there I don't feel the need to have to over-think or analyse. Perhaps the next update will be a bit clearer!

Lemsip time :)

simoan

Well it's certainly a short sighted reason for not buying! Cashflow can vary for good reason from time to time and so you need to look at the bigger picture. If you look at the longer term cashflow as opposed to a single instance you can see the current high P/FCF figure is anomalous and at least worthy of further research. To rule a share out based on a single data point in time seems strange to me.

7th Mar '19

To rule a share out based on a single data point in time seems strange to me.

Thanks simoan. To some extent I accept that reasoning. I guess it all depends on one's investment philosophy and how risk averse one is. My view is that we have thousands of stocks to choose from so I tend to look for reasons not to invest before examining the reasons to invest. Whilst there may be acceptable reasons for investing in Costain (LON:COST) - and the numbers look pretty good apart from the cashflow which is almost non-existent - I wouldn't invest in it until I know why there is a cashflow problem and what they are going to do about it.

I Read The News Today Oh Boy! 6-Mar-2019

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Matylda

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