Small Cap Value Report (4 Oct) - API, TCN, PUR, CPR, ABM

Friday, Oct 04 2013 by
11

Good morning! Firstly, apologies again for being late - I cannot blame it on the sunshine, nor the moonlight, not even the boogie. So it can only be blamed on the good times. Luckily I put those good times to good use, and decided to massively upgrade my charity fundraising target for Sunday's Half Marathon, from five hundred quid to £3,000, and put my own money where my mouth is! We're over half way there, at £1,610 including Gift Aid, so today I beg readers to dig deep and cough up a bit more if you can, for Scope. Our collective wealth must run into not just millions, but hundreds of millions of pounds, so surely £3k is not an unrealistic target for me enduring a painful & unpleasant Sunday morning hobbling at an accelerated pace around London's leafy enclaves?

 

 

Anyway, let's crack on and have a look at the morning's trading results.  It's a very quiet day, thankfully. Amazingly quiet actually, there's hardly anything of note. Maker of specialist foils and packaging materials, API (LON:API) has issued a trading update. The key bit seems to be this;

 

The Board's most recent guidance, provided at the time of the AGM on 11 July 2013, remains unchanged overall.  Full year results are still expected to show progress over the previous year despite first half trading having been weaker than anticipated and very strong comparables at the interim stage last year.  

 

So a bit vague, in that it doesn't refer to how they are trading relative to expectations (which is what matters!). There really needs to be a standardised required format for trading statements, so that companies are required to state (1) what market expectations are, and (2) how they expect to perform against them. Furthermore, companies should be required to give a likely range of profits - a single number is ridiculous, few companies can be that precise in forecasting, but every company should be able to give a range of likely outcomes for profits. Something for the regulators (although you sometimes wonder if they actually exist, as anything seems to go!) to ponder.

Here is their 2 year chart - you can clearly see the bid premium go into the price, and then come out again, bringing it back…

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As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested. ?>


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Tricorn Group plc is a holding company. The Company holds interests in companies that develop and manufacture pipe solutions. The Company's principal activities include high precision tube manipulation and systems engineering. The Company operates in two segments: Energy and Transportation. The Energy segment includes manipulated tubular assemblies for use in power generation, oil and gas, and marine sectors. The Transportation segment includes ferrous, non-ferrous and nylon material tubular assemblies for use in on and off-highway applications. The Company also offers rigid, nylon and hybrid tubular products for engines, braking systems, transportation lubrication, fuel sender sub-systems and hydraulic actuation in a range of on and off road applications. The Company offers brazed and welded assemblies, tube hose assemblies and diesel injector lines for medium and heavy duty truck engines. It offers hydraulic tube assemblies and precision tubular products for the agricultural sector. more »

LSE Price
19p
Change
 
Mkt Cap (£m)
6.5
P/E (fwd)
6.1
Yield (fwd)
2.4




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6 Comments on this Article show/hide all

m_uller 4th Oct '13 1 of 6

Hi Paul

A resumed dividend is on the cards is signposted for the next interims as per last results

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AlanJenkins2 4th Oct '13 2 of 6

I commend your caution,but at least API does seem to be growing.Generally,I favour elimination of debt,then accumulation of a modest cash pile for emergencies,then a conservative dividend policy.

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rmillaree 4th Oct '13 3 of 6

"Something for the regulators (although you sometimes wonder if they actually exist, as anything seems to go!) to ponder. "
Lets get some sort of online petition going with this regard - it annoys me most when they say we are in line with management expectations but i then cannot find out for certain what those expectations are.

The simple solution is to say all companies must report in the format similar Fyffes use and its job done
from their most recent release (they always use the same type speak) . Ideally make it requirement to go the whole hog and give guidance on EBITA/pre-tax and EPS. Would be nice if the Finance Directors actually provieded something useful for their Wonga type salaries :)

Fyffes example
"Current trading
Trading conditions have remained positive in the early months of the second half. Fyffes continues to pursue
necessary increases in selling prices in all markets to offset the impact of higher fruit costs and less favourable exchange rates, particularly the Sterling / US Dollar currency pair. Fyffes is increasing its target EBITA range for the full year 2013 from €27m-€33m to €29m-€34m, compared to €30.5m in 2012

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sjw 4th Oct '13 4 of 6
1

Hi Paul, the link to the fundraising page doesn't seem to work. Well, it doesn't for me at least.

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Paul Scott 4th Oct '13 5 of 6

In reply to post #77852

Hi sjw,

Drat! Thanks for flagging that problem, I have now fixed the broken link to my fundraising page.

Cheers, Paul.

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cig 7th Oct '13 6 of 6

In reply to post #77851

It would be even better to require machine readable reports with whatever fields are thought necessary (à la XBRL, see http://en.wikipedia.org/wiki/XBRL).

Manually parsing numbers from narrative is a waste of everybody's time. Text narrative should be used for qualitative statements.

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 Are LON:API's fundamentals sound as an investment? Find out More »



About Paul Scott

Paul Scott

I trained as an accountant with a Top 5 firm, but that was so boring that I spent too much time in the 1990s being a disco bunny, and busting moves on the dancefloor, and chilling out with mates back at either my house or theirs, and having a lot of fun!Then spent 8 years as FD for a ladieswear retail chain called "Pilot", leaving on great terms in 2002 - having been a key player in growing the business 10 fold. If the truth be told, I partied pretty hard at the weekends too, so bank reconciliations on Monday mornings were more luck than judgement!! But they were always correct.I got bored with that and decided to become a professional small caps investor in 2002. I made millions, but got too cocky, and lost the lot in 2008, due to excessive gearing. A miserable, wilderness period occurred from 2008-2012.Since then, the sun has begun to shine again! I am now utterly briliant again, and immerse myself in small caps, and am a walking encyclopedia on the subject. I love writing a daily report for Stockopedia.com on most weekday mornings, constantly researching daily results & trading updates for small caps. Cheese! more »

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