Good morning!
Brand new Stockopedia charts
The technical guys at Stockopedia HQ have been busy working on completely new charting software, for a long time now. Well, today is launch day! I had a preview last night, and it's a massive improvement on the existing charts on this site.
Ed is doing the launch in a webinar at 1pm today. The webinar sign up link is here. There are already a large number of people signed up, so there's clearly lots of interest in the new charts.
Whatever you think of charting, it does measure investor sentiment. So combining some analysis of the chart, with strong fundamental analysis, makes a lot of sense to me. I've certainly been more willing to run my winners, and tolerate more stretched valuations (in certain circumstances) recently, after reading the excellent Mark Minervini book on super-performance stocks - don't be put off by the spivvy-sounding title to the book, as it's an excellent read, highly recommended. He relies on some simple charting techniques to time his buy & sell points.
There are a lot of interesting trading updates & results out today in our small caps universe. Therefore both Graham & I will be writing reports today. I know it's a pain when we deliver 2 separate reports, but the logistics of it currently necessitate that, otherwise chaos will ensue if we try to merge lots of sections into one report.
Graham's report is taking shape here.
This is our plan of action today:
I intend reporting on
Revolution Bars (LON:RBG) - in line interim results & outlook
Boohoo.Com (LON:BOO) - due to popular demand, I'm continuing to report on this, even though it's now a mid-cap. Yet another positive trading update, and completion of Nasty Gal acquisition.
Graham intends reporting on;
Waterman (LON:WTM) - interim results
Redde (LON:REDD) - interim results
Avanti Communications (LON:AVN) - interim results
Swallowfield (LON:SWL) - interim results
Then, if there's time, we'll try to more briefly mention:
Johnson Service (LON:JSG) - interim results
Avingtrans (LON:AVG) - interim results + acquisition
Hi robin66,
I'm not sure about that, but imagine it might be something to do with the pre-opening costs on new sites of £0.8m. Have you included those costs in the administrative costs?
Revenue is up 12.7%, and adjusted operating profit is up 10.0%, so they're in the same sort of ballpark.
Numis points out that Revolution Bars (LON:RBG) has managed to maintain its EBITDA margin, when others in the pubs sector are seeing margins falling. This is because RBG has more pricing power, due to its offering being differentiated - cocktails-driven, which also means less competitive pressure from people buying take-outs from the supermarket - which is a problem for conventional pubs serving mainly beer.
I feel that, at this valuation, RBG is a rare opportunity to buy something significantly below a rational valuation. It wouldn't surprise me if they receive bid approaches from private equity at this level, who could fund maybe 50% of the acquisition price with cheap debt.
Regards, Paul.