Good morning! Do have a play with the new "Ranks" tab on the black menu above - it's great!I was experimenting last night, it's a new page to allow you to browse the stock ranking system here.

Trifast (LON:TRI)

Share price: 113.3p
No. shares: 116.2m
Market Cap: £131.7m

Trading update - this looks positive - note the "ahead of ... expectations" bit (although that refers to organic growth, not profitability - although they should mean the same thing);


The update also refers to improved efficiency driving higher margins, and the potential for more growth through acquisitions.

My opinion - I've previously been sceptical about the valuation here, but given the positive news this morning, and what now looks like a fair valuation, I'm considering buying a few of these shares at 113p. The company has a good track record (see the Stockopedia graphs below), and seems reasonably priced for a company that has been consistently meeting or beating expectations in the last few years;


I didn't take to management when they presented at a Mello event a couple of years ago, but it looks like I misjudged them, as the business has performed well since.

DP Poland (LON:DPP)

Share price: 12p (up 27% today)
No. shares: 95.4m
Market Cap: £11.4m

Trading update - this company has exclusive rights over Dominos Pizza in Poland, so the hope has always been that the company could replicate its huge success in the UK. So far the company hasn't even come close, with terrible financial performance to date.

The company operates 12 branches in Warsaw & Krakow, with a further 6 franchised branches. Like-for-like ("LFL") sales were up 19% in 2014, which is very good (but from a low base).

The top 3 stores moved from EBITDA losses of avg. £13k in 2013, to positive £24k in 2014. That's a good improvement, but throwing a bucket of cold water over bulls, I would point out that capex is not paid for by the tooth fairy! The fit-out for this type of store is about £400k in the UK, so whilst it might be cheaper in Poland, you would still be looking at a significant amount. Therefore the depreciation charge is almost certainly bigger than EBITDA, meaning that the top 3 branches are actually still loss-making!

Bear in mind…

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