Good morning. 1pm (LON:OPM) announces a £1.5m equity investment from Henderson, 1 billion new shares, at 0.015p a share. There's clearly a need to consolidate the shares, this is 21st century Britain, not Weimar Germany!

It's a good deal though for this small asset financing lender, which is operating in a lucrative niche largely abandoned by the major Banks. They also announce that results for the year ended 31 May 2013 will show good organic growth, with profits ahead of market expectations, at £750k. It looks an interesting situation, although below my usual £10m market cap cut-off.



There are not many results today, and generally it's set to be a fairly quiet week, although there are lots of AGMs, so therefore likely to be plenty of trading statements for me to interpret.

Immunodiagnostic Systems Holdings (LON:IDH) is a share that has been mentioned here before, and is difficult to value - because it's a former high growth share (which was rated very highly) which hit hard times after competitive pressures increased, stifling their growth. I rarely pay high earnings multiples for growth companies, because they are just an accident waiting to happen.

Investors often over-pay for growth, and the trouble is that when growth disappoints, then you are hit by a double whammy of lower earnings estimates, and a much lower earnings multiple. Combine the two, and it can be carnage.

IDH peaked at 1200p in July 2011, then collapsed to lows of around 250p a year later, after warning on profits. However, they have perked up more recently, rising strongly to 453p in recent months. That gives a market cap of £126.8m, and the company itself has net cash of £19.6m, so has a very solid Balance Sheet.

They state in the narrative to today's results (for the year ended 31 Mat 2013) that revenues and profits are in line with expectations, but according to my figures their EPS of 27.2p is slightly down on broker consensus of 29.7p. The share price of 453p prices the company at a multiple of 16.7 times earnings just announced. Even allowing for their net cash being a healthy 15% of the market cap, that still doesn't strike me as much of a bargain for a company whose turnover & profits are actually down on…

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