BlackCabbieTrader John Walsh – Trading Idea for Friday 26th August

bc-logo-web-versionBlackCabbieTrader John Walsh publishes trading ideas every day on his JW_One-2-OneRoutemaster blog on the blackcabbietrader.com website.

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Today’s trading idea for Friday 26th August is Long KRA. More here

CHOO Sees Significant Growth Potential Ahead

Jimmy Choo plc CHOO claims an excellent first half performance with margin expansion, impressive growth in China and a weak pound, all helping operating profit to rise by 42.6%.  Total revenue rose by 9.2% and adjusted earnings per share by 26.7%.  A strong start has been made to the second half and the company still sees significant growth potential ahead.

John Laing Group JLG Has more than tripled its profit before tax  for the half year to the 30th June with a rise from £32.6m to £108.3m. External assets under management rose by 12.5% and the yield from the investment portfolio rose from £11.4m to £18.3m An interim dividend of 1.85p per share will be paid in October.

CRH PLC. CRH First half profit before tax rose more than sixfold to 407m Euro and reported EBITDA more than doubled to 1.12 billion Euro. Sales were up by 35%  or 8% on a like for like basis. The interim dividend is being increased by 1.6% to 18.8p Early stage signs of economic recovery in Europe have been seen and further progress is expected in the second half, with continuing positive momentum in the Americas.

STV Group STVG is enjoying its sixth continuous year of profit growth with a 50% rise in pre tax profit for the half year to 30th June. Revenue was up by 5% and statutory earnings per share by 55%. Net debt fell by 17%. the interim dividend is increased by 33% to 4p per share and it is intended to pay a final dividend of 12p. The company puts its success down to (inter alia) its ambitious vision.

Coral Products plc CRU made further progress during the year to 30th April and expects to continue increasing its market share in the medium term. Revenue rose by 7.4% and profit before tax by 296% or 22.2% on an underlying basis. The final dividend is to be increased from 0.7p to 1.0p

 Looking for Villas & Houses For Sale In Greece – visit;   http://www.hiddengreece.net

Quoted Micro 22 August 2016

ISDX

Property investor Etaireia Investments (ETIP) has acquired the company that owns 5-6 High Street, Cleator Moor, Cumbria.Etaireia paid £182,000 with £50,000 in cash and the rest in shares issued at 0.065p a share. The company also raised £35,000 at 0.09p a share, while Babak Shirazi has been granted options over 333.33 million options (equivalent to 18.2% of the fully diluted share capital) at the same share price – the option lasts until 9 April 2019.Etaireia has also issued shares to pay advisers and salary owed to two directors that have resigned. The property has a tenant paying £20,000 a year so it has been acquired at an attractive valuation.

 

ZimNRG (MNRG) had £123,000 in the bank at the end of February 2016 but £50,000 was subsequently raised from AIM-quoted Metal Tiger following a share sub-division. There was a £24,000 cash outflow in the year to February 2016. The cash is being held in US dollars so that it is ready to pay for any deal that is secured. The focus is the natural resources and/or energy sectors.

 

AIM

Cloud-based services provider Nasstar (NASA) is paying £13m cash and shares or the acquisition of competitor Modrus in an earnings enhancing deal. A placing will raise £13.3m at 7.5p a share and £11.7m of this will be used to pay the cash consideration. Modrus specialises in property services so it provides an additional specialisation for the group. Modrus generated EBITDA of £1.6m in 2015-16, which is similar to Nasstar’s EBITDA for 2015 and there should be cost savings.

 

Gresham House Strategic (GHS) has transferred 3.876 million shares in IMimobile (IMO) at 193.5p each as part of a £7.5m co-investment deal with Gresham House Strategic Public Equity Fund LP, which is also managed by Gresham House Asset Management. There will be an initial gain of £900,000. Gresham House Strategic will retain a direct legal interest in 1.53 million of these IMimobile shares, so the retained interest will be 8.19 million shares. Within 12 months, a further 1.14 million of the shares will be fully transferred. The company will distribute 50% of gains to shareholders and, along with the gains from the investment in Castle Street Investments, there should be £600,000 available – equivalent to 15p a share – and this could be paid as a final dividend.

 

Tracsis (TRCS) has won its first significant US contract for remote condition monitoring equipment. The total order, which includes software, is worth more than $400,000 and should be delivered by the end of 2016. Up until now there have been pilot projects in the US and demand for the company’s remote condition monitoring equipment in the US could be large. A full year trading update will be published on 22 August.

 

Pennant International (PEN) is raising £3.56m at 55p a share – a discount of nearly 13% to the previous closing price. The cash will finance working capital for the recent contract wins and the £500,000 purchase of adjacent property in Cheltenham. Chief executive Chris Snook is selling one million existing shares at the same price. An interim profit of £10,000 is estimated but the second half should be much better. Hargreave Hale increased its stake to 14.4% and the Business Growth Fund has taken a 6% stake.

 

Caledonia Mining Corporation (CMCL) increased gold production in the first half of 2016 helped by higher grades. Production from the 49%-owned Blanket Mine in Zimbabwe improved from 20,360 ounces to 23,332 ounces, while the cost per ounce has fallen. Net cash has fallen to $10.6m because of the investment in the mine, which should peak this year. The real benefits from the investment will show through next year. Even so, the quarterly dividend has been increased from 11.125 cents a share to 1.375 cents a share.

 

Nostra Terra Oil & Gas (NTOG) has sold its interest in the Chisholm Trail oil and gas project for $2.1m. The buyer is Staghorn Petroleum. The cash is likely to be reinvested in North America or Egypt.

 

MAIN MARKET

Global Resources Investment Trust (GRIT) has decided not to go ahead with the proposed subscription and open offer following discussions with larger shareholders, which indicated they did not support the proposals.  GRIT will repay £1m of convertible loan stock held by LIM Asia Multi-Strategy Fund Inc, which had requested repayment, by the end of August and then repay the £2.5m of loan stock owned by LIM that is left from the proceeds from portfolio disposals. There was £331,000 in the bank at the end of 2015, while the portfolio was valued at £12.3m at that time. At the end of July, the NAV was 27.4p a share, up from 20.3p a share at the end of 2015. The current share price is 6.5p (5.75p/7.25p).

Andrew Hore

 

Brand CEO Alan Green discusses Edenville Energy (EDL) and Faron Pharma (FARN) on VOX Markets podcast

Brand CEO Alan Green discusses Edenville Energy (EDL) and Faron Pharma (FARN) with Justin Waite on the VOX Markets podcast. The interview is 19 minute 45 seconds in.

WPP Slumps, Costain Excited

Costain Group COST is enjoying exciting times as the countries energy, water and transport infrastructure continues to be upgraded. The interim dividend is to be increased by 15% to 4.3p after revenue for the half year to 30th June rose by nearly 25%.  The half year ended with a record order book, 90% of which was repeat business.

Paddy Power Betfair PPB Online half year revenue rose by 20% and total revenue by 18%. merger integration is ahead of plan but merger related items led to an operating loss of £48m. and a loss per share of 68.3p Underlying operating profit however was up by 39% and underlying EBITDA by 31%. an interim dividend of 40p per share is to be paid.

WPP plc WPP After exceptional write downs interim profit before tax slumped by 40.1% and profit after tax by 53.1%. On a headline basis however, reported PBT was up by over 15%. Billings rose by 9.3% and revenue by 11.9%. Like for like net sales grew by 3.8% and the  interim dividend is to be raised by 22.9% to 19.55p.

Headlam Group HEAD enjoyed a strong first half to the 30th June and is increasing its interim dividend by 11.7% to 6.7p.It made further gains in market share in the UK where it outperformed and saw an improving trend on the continent. Profit before tax rose by 22.4% and basic earnings per share by 23.1%

Hikma Pharmaceutical HIK claims a solid first half performance which saw operating profit fall by 27% on revenue up by 28%. Basic earnings per share were down by 49% and the interim dividend is being maintained at 11 cents per share.

Goldplat GDP has put in a strong financial performance for its year end at the 30th June thanks to the recovery in the price of gold and the collapse in sterling. A full year profit before tax of £2m. is now expected.

BlackCabbieTrader John Walsh – Trading Idea for Wednesday 24th August

bc-logo-web-versionBlackCabbieTrader John Walsh publishes trading ideas every day on his JW_One-2-OneRoutemaster blog on the blackcabbietrader.com website.

Sign up for TheKnowledge for his full watch list, exact entry points, stops loss placements and access to The Knowledge community.

New: Now you can consult directly with John via Knowledge One-2-One. More here.

Today’s trading idea for Wednesday 24th August is Long AMAT. More here

Brand CEO Alan Green talks Persimmon (PSN), Andalas Energy (ADL), Cal Crutchlow & Barry Sheene on TipTV.

The US market lull ahead of the Yellen’s speech on Friday, UK’s decoupling from the US economy, top stock picksPersimmon (PSN), Andalas Energy (ADL) plus Cal Crutchlow & Barry Sheene – remain the key discussion points in today’s Tip TV Daily Market Roundup with Zak Mir, Technical Analyst at Zak’s Traders Cafe, and Alan Green, CEO at Brand Communications.

Foreign Exchange Tailwinds Arrive To Help The Weak.

Cape plc CIU Companies with problems are now beginning to benefit from the collapse of sterling or as Cape puts it, foreign exchange tailwinds. Profit before tax for the half year to 30th July slumped by 30% after a 10% rise in revenue. Weak margins in the UK were partly offset by Asia Pacific performing above expectations and a strong Middle East.  Full year expectations are unchanged, partly because of those foreign exchange tailwinds. That must be a comfort for the company’s management if not for the country as a whole..

Persimmon PSN appears to show clear signs of a slowdown in its housing market, despite claims that it has produced a robust trading performance for the half year to 30th June, which saw profit before tax up by 29% and basic earnings per share  by 19%. True legal completions in the half year did rise by 6% but after a 6% rise in the average selling price, forward sales at the end of the half year were up by only 2% in value. Customer site visits have risen by 20% but site visits are not sales and if forward orders are up by only 2% after a 6% price hike and a 20% increase in visitor numbers, something is not adding up. Revenue for the half year rose by 12% which matches exactly the rise in completions plus the price hike.

Rank Group RNK is increasing its final dividend by 18% to 4.7p per share after growth across all its brands and channels. Like for like revenue for the year to 30th June rose by 3%, total revenue by 2%, adjusted profit before tax and earnings per share by 4% and 5% respectively, so with 18% shareholders are doing very well.

 Looking for Villas & Houses For Sale In Greece – visit;   http://www.hiddengreece.net

BlackCabbieTrader John Walsh – Trading Idea for Monday 22nd August

bc-logo-web-versionBlackCabbieTrader John Walsh publishes trading ideas every day on his JW_One-2-OneRoutemaster blog on the blackcabbietrader.com website.

Sign up for TheKnowledge for his full watch list, exact entry points, stops loss placements and access to The Knowledge community.

New: Now you can consult directly with John via Knowledge One-2-One. More here.

Today’s trading idea for Monday 22nd August is Long ROST. More here

Quoted Micro 15 August 2016

ISDX

Beer and spirits volumes were both higher in the first half for Adnams (ADB). Beer volumes were 7% ahead, while the volumes of the less-mature spirits business were 60% higher in the first half. However, increased marketing costs meant that operating profit fell from £962,000 to £624,000, while disposal profit jumped from £407,000 to £1.42m – including the sale of UK distribution rights for Lagunitas to Heineken. The second half is always stronger for the pub and retail operations. A £7m investment is being made to increase brewery capacity by next summer. The A and B dividends have been increased by 5.6% to 19p and 76p respectively. The record date for the dividends is 9 September. There were 132 shares traded during the week at prices between 10500p and 10850p.

WMC Retail Partners (WELL) expects to make a lower interim loss this year. WMC has agreed in principle a funding package of £1.8m plus revised terms for the lease of Cornish Market World, which is still losing money even though a reconfiguration has improved performance. Interests related to two directors are lending the company £300,000, taking the total outstanding to £400,000, ahead of completion of the funding package. These loans are repayable at the end of November but longer term loans, which shareholders have to approve, are being negotiated.

National Milk Records (NMRP) has appointed Mark Frankcom, who has previous experience in the dairy industry, as its new finance director. Since April 2011, Frankcom has been a director of Gloucestershire-based Combined Brewers, which was known as Cotswold Spring Brewery prior to its merger with Severn Vale Brewery, where he owns 33.3% of the shares. At 77.5p (76p/79p) a share , NMR is valued at £5.8m. The latest trade was 320 shares at 76p each on 10 August.

There has been mixed news for blockchain technology investor Coinsilium (COIN). Factom, which has developed technology to time stamp trading data, has done a deal with digital information platform DataYes to publish pricing data on the “3,000 most valuable Chinese stocks”. Coinsilium has a 1.9% stake in Factom. The management of Mexico-based digital currency exchange MeXBT, where Coinsilium has a 17.6% stake, has temporarily suspended its exchange operations in order to perform a review.

Diversified Oil & Gas (DOIL) has bought back £197,000 worth of 8.5% unsecured bonds from a bondholder fund. There are £9.93m worth of bonds in issue, including the bonds bought back.

AIM

Premier Technical Services Group (PTSG) continued to grow strongly in the first half and it has not been hit by the Brexit vote. In the past two weeks, Premier has secured two access installation contracts worth £2.5m. The construction-related order book stretches out to 2018 and the testing and maintenance operations also have a strong order book. The two dry and wet riser systems installation businesses acquired in July will contribute to the second half.

Staff turnover is holding back the progress of energy procurement services provider Utilitywise (UTW) and it has overhauled its management, including the appointment of a new chief executive. Brendan Flattery is joining the company at the beginning of October, having previously headed Sage’s European business. Sales grew by 19% in the year to July 2016, while EBITDA will be slightly higher than last year at around £18m. Earnings per share forecasts have been reduced by around 10% to 17.7p, which is slightly lower than the previous year.

Digital media company Milestone (MSG) is providing NaPo with a white label version of its Backstage HD music publishing platform. NaPo is a mobile reward platform and revenues generated will be shared 50/50.

Audio visual services provider MediaZest (MDZ) says that it is targeting its first ever post tax profit in 2016-17. In the year to March 2016m revenues grew from £2.48m to £3.14m, while the post tax loss was cut from £656,000 to £109,000, excluding share-based payment charge. There are two large projects that could come through later this year or early in 2017.

Self-storage sites operator Lok’nStore (LOK) says that like-for-like storage occupancy was 2% higher last year and prices have increased by a similar percentage. This lead to a 5.2%increase in sales and means that Lok’nStore is on course to increase earnings per share buy one-third to 10.3p. There are plans for new outlets including one in Gillingham, Kent.

Information management software provider Ideagen has acquired Covalent, which is similar to its own business, for £3.6m. Covalent has a customer base that includes the NHS, local government and housing associations and annual recurring revenues are £1.9m. This deal has led to a 8% increase in forecast 2017-18 earnings per share to 3.5p.

Mining services provider Management Resource Solutions (MRS) has agreed to acquire the min assets of SubZero Group Ltd for A$6.12m in cash and shares. This cost includes the assumption of A$2.85m of equipment finance and employee benefits. SubZero, which has generated annual revenues of A$40m, fits with MRS’ project management and labour hire businesses and will double group revenues. Operating sites will be consolidated and corporate costs reduced. Rising coal prices should lead to recovery in demand for the group’s services in Australia.

MAIN MARKET

Publisher Quarto (QRT) has acquired becker&mayer publishing assets for $9.8m. The US-based business is a book publisher and toy business and a further $1.25m could become payable. The US will account for 45% of group revenues, while children‘s publishing will be 30% of group revenues. Quarto is second half weighted so the interim loss is no surprise. The interim dividend is unchanged at 5.13 cents a share but in pence terms it will be higher. Full year profit is expected to improve from $14.1m to $15.5m.

Tex Holdings (TXH) says that a change in mix of work meant that profit did not reflect the improvement in interim turnover from £17.8m to £20.6m. Pre-tax profit was flat at £495,000. Plastics turnover fell in the first half but sales volumes have picked up in the second half. The interim dividend has been increased by one-quarter to 2.5p a share.

Andrew Hore

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