Pre 8 a.m. comments

Another contract win for a widely-followed company, Lo-Q (LON:LOQ) has been announced today, this time for a theme park in Turkey. No financial details are given, but it's a 2-year contract, with an option to extend for another two years, to provide the Q-bot virtual queuing system for eight of the park's largest rides.

The shares recently peaked at a pretty bonkers price of around 670p (which was a forward PER of about 40!), but have since come off to a perhaps more reasonable 537p. The forward PER of 32 doesn't tempt me I'm afraid, still much too warm for my tastes. Although as supporters point out, each contract won is a stream of recurring revenues, so earnings will lag behind the valuation, which is an argument that has some merit to it.

EPS will surely need to come in a long way ahead of broker consensus of 16.2p and 17.6p this year and next year, to justify the current rating? I can get to a price of about 400p at a stretch, but a more reasonable price looks to me around 300p based on existing forecasts. But if you think they will out-perform forecasts, then it's worth more! You pays your money, and all that.

They should start paying dividends now too, in my opinion. I notice that the Beneish M-Score throws up a warning flag over possible "earnings management". Don't shoot the messenger, I'm just pointing it out as an area that investors might want to look at, and gain reassurance about.

 

 

I like the look of results from Getech (LON:GTC). This is a specialist consultancy in the resources sector, which owns a database of global garavity and magnetic information, which is licensed to oil exploration companies.

At 65p the market cap is £19m.

Interim results to 31 Jan 2013 show a very successful half year, with turnover of £4m delivering a profit before tax of £1.4m (up a whopping 290% on the equivalent prior year period), although the increase against last year's H2 is less pronounced.

Diluted EPS is 3.328p, so if we double that (assuming no seasonality from H1 to H2) then it's about 6.7p annualised, so a PER just under 10. Looks pretty…

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