Brainjuicer BJU regained momentum in 2016 and traded strongly, especially in the US, after the modest performance of the two previous years. Gross profit for the year to the end of December rose by some 27% to about £25.6m and even after payments of £5.2m to shareholders by way of dividends and share buy backs, the year ended with a cash balance of £7.8m., equal to 63p per share. Pre tax profit for 2016 is expected to be 37% higher at £6.2m. Final results are expected on the 9th February.
Midatech Pharma MTPH expects revenue for the year to 31st December will have risen to £9m from 2015’s £1.4m. Double digit top line growth is expected for 2017.
Bonmarche Holdings BON had a fairly disastrous Xmas with like for like store sales for the 5 weeks to 24th December down by 3.4% and online sales, unlike other retailers, slumping by 14.3%. Total like for like sales over the 5 weeks fell by 4.2%. Obviously there seems to have been a problem with t heir online offer. Christmas trading was only a continuation of the fall seen over the first 9 months when total sales fell by 5.3%
Character Group CCT expects first half results to be lower than last years as sales of Teletubbies, Fireman Sam et al fell slightly for the 4 months to December. The fall in the value of sterling also adversely affected gross UK margins and the company has taken measures to mitigate this and these are already starting to take effect.
Elecosoft ECO expects profit before tax for the year to the end of December will be significantly ahead of market expectations after 2016 produced record sales. furt her progress is expected in 2017
Royal Mail plc RMG How can any company be taken seriously when its CEO’s English appears to be so bad that she has to express herself in internal company jargon – thus ones breakfast reading of the goings on at Royal Mail includes – “movements in foreign exchange, ASM and GSO in GLS” Can the Board not send her for re training so that she can speak the same language as the rest of the country.
More jargon follows with the update for the 9 months to the end of December claiming 9% growth in GLS and a 2% decline in PIL. Is that good or bad, one must ask oneself. Parcel revenue rose by 3% whilst letter revenue was down by 5% as overall business uncertainty continued to affect letter volumes in the UK.
Chemring Group CHG appears to have rebounded from 2015’s problems and turned last years loss of £9.1m into a profit of £8m. for the year to 31st October. Earnings per share came in at 2.5p after last years loss of 2.4p. whilst total evenue for the year rose by 26.5% and operating profit soared from £5.5m to £ 26.2m.
Finsbury Food Group FIF suffered from flat sales in the in the 6 months to the 30th November, with the bakery division down by 2.9% as the UK retail market continued to suffer from price deflation. In contrast the European division which is 50% owned by FIF rose by 31.7%. Sterling induced commodity inflation and increases in the national living wage are expected to lead to cost inflation in the second half.
1 PM PLC OPM continued to experience high levels of demand in each of its three subsidiaries for the half year 30th November. Revenue rose by 52%, profit before tax by 23% and basic earnings per share rose from 2.91% to 3.08%
by Zak Mir
It appeared that for a while there was a degree of negative sentiment associated with medical imaging group Feedback (LON:FDBK), but the background noise now looks to have finally cleared, so to speak.
It can be seen from the daily chart of Feedback that we are finally back on the front foot, a point underlined by the positive aftermath of the spike through the 200 day moving average in September.
From a fundamental perspective it can be said that the group is in a good place. TexRAD, the group’s medical imaging software is selling all over the world, and forms an integral part of the medical prognosis procedures in many leading hospitals.
Recent full year results showed an increase in sales and a reduction in debt. Chairman Dr Alastair Riddell, appointed in 2016 has a long and impressive track record in the pharma, life science and healthcare sectors, and importantly has been involved in IPOs and international trade sales for three UK biotech companies.
Looking at the technical outlook, the stock has progressed within a rising trend channel since the autumn. The floor of the channel currently runs level with the 50 day moving average at 2.05p. The implication is that at least while there is no break back below the 50 day line we should be treated to a 2-3 month time frame target as high as 5p.
In the meantime, any weakness back towards recent broken resistance at 2.5p should be regarded as a buying opportunity as it would cool off the present overbought position in the RSI oscillator towards 90/100.
Click here for the full article
Buy Coats Group (COA) – Shares offer great value in the run up to next month’s results say VectorVest
Coats Group Plc (COA.L), formerly Guinness Peat Group plc, is a UK-based company engaged in industrial thread and consumer textile crafts. The Company serves industries, such as apparel, footwear and accessories, technical threads and engineered yarns. COA supports consumers in the crafts activities, including knitting, crochet, embroidery, patchwork and quilting, and sewing. Product offerings include threads, zips, yarns and embroidery, while brands include Rowan, Anchor, Drima, Seta Reale, Royal Paris, Susan Bates and Dual Duty XP. The Company owns over 70 manufacturing facilities, which serve industrial and crafts customers across six continents.
On Oct 13 2016, COA issued a trading update for the period July 1 – Sept 30 2016. The group said that the challenging market conditions that had impacted Q2 Industrial sales performance had improved during Q3 as Coats entered its peak sales season. Inflationary pressures on input prices were being managed well and the Company said it continued to grow market share and deliver productivity and procurement improvements. As a result, the Board expects adjusted operating profit for full year 2016 to be ahead of its previous expectations. Additionally, improvements to non-operating items will further benefit adjusted EPS, providing current foreign exchange rates persist until the end of the year. The full year results are due toward the end of February 2017.
Despite the impressive rise in COA shares since the October statement, the VectorVest stock analysis and portfolio management system continues to flag COA shares as good value across a number of key metrics. The VST-Vector (VST), is the master indicator for ranking every stock in the VectorVest database, computed from the square root of a weighted sum of the squares of Relative Value (RV), RS, and Relative Timing (RT). Stocks with the highest VST ratings have the best combinations of Value, Safety and Timing. COA has a VST rating of 1.45, which is excellent on a scale of 0.00 to 2.00. COA registers a current Value of 78.32p per share, on VectorVest, and as such is undervalued at its current price of 57.50p per share. Even the Relative Value (RV) metric, an indicator of long-term price appreciation potential, logs an RV of 1.53 for COA, again excellent on a scale of 0.00 to 2.00.
A daily price chart over the past six months of COA.L is shown above. The price is charted in candlestick format with the VectorVest calculated valuation in green above the price. Earnings per share is shown in the window below price as the blue line study. The share is charting a series of rising bottoms which is the sign of a bullish market as defined by Charles Dow some 100 years ago. Mr. Dow would have referred to the trend as being a “strong trend”. This is because the last low which occurred on the 10th January DID NOT go back and kiss the last high charted at the end of November 2016. This type of breakaway price action invariably precedes further upside which is in sync with the fundamental view on VectorVest.
Summary: VectorVest is the only FCA regulated stock analysis and portfolio management system that analyzes, sorts, ranks, and graphs over 20,000 stocks each day. That COA scores so highly across our key metrics is testament to the nascent value and future earnings potential within the company. From a timing standpoint, and with the stock still undervalued, these factors are well worth considering now in the run up to next month’s full year results. Buy.
Dr David Paul
January 18th 2017
Readers can examine trading opportunities on TRI and a host of other similar stocks for a single payment of £5.95. This gives access to the VectorVest Risk Free 5-week trial, where members enjoy unlimited access to VectorVest UK & U.S., plus VectorVest University for on-demand strategies and training. Link here to view.
FREE! For free VectorVest analysis on any stock, go to this link here
On VectorVest a simple search using the Unisearch tool will quickly find shares that are undervalued with good fundamentals that have just issued a Buy recommendation. This will give the active trader a short list of many high probability trading opportunities each week. Traders now have the opportunity to spend five weeks discovering VectorVest’s unique simplicity, automation and independent guidance. Just £5.95 buys a 5 week trial to enable deep exploration, or how the system can assist in smarter trading in as little as 10 minutes a day. Powerful tools. Proven strategies. Unique Perspectives.
Link here for more info and to set up a trial.
European Financial Publishing Limited T/A VectorVest UK (VectorVest) is authorised and regulated by the Financial Conduct Authority under register number 543038. You should remember that the value of investments and the income derived therefrom may fall as well as rise and you may not get back the amount that you invest. Past performance is not a reliable guide to the future. This material is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. If investors are in any doubt of the suitability of an investment given their individual circumstances, they are recommended to contact an investment manager or independent financial adviser who may be able to provide tailored advice. Opinions expressed whether in general or both on the performance of individual securities and in a wider economic context represent the views of VectorVest at the time of preparation. They are subject to change and should not be interpreted as investment advice. VectorVest and connected companies, clients, directors, employees and other associates, may have a position in any security, or related financial instrument, issued by a company or organisation mentioned on this site. European Financial Publishing Limited is a company incorporated in Scotland under Company Number SC357322 with its registered address at Exchange Tower, 19 Canning Street, Edinburgh EH3 8EH. Email: support@VectorVest.com
Pearson PSON failed to stop the rot as its year end approached and Quarter 4 produced further unprecedented decline in its North American higher education business. Net revenue fell by 30% leading to an annual decline of 18% for the full year, again an unprecedented collapse. Despite this profits for 2016 are still expected to be in line but the operating profit goal for 2018 has been abandoned because of the continuing challenges and uncertainty in the North American market. From 2017 dividends are to be rebased.
MITIE Group MTO warns of underperformance in the cleaning division, a board meeting this week which lasted for two days whilst it considered the company’s problems and management changes which are now being implemented. Delays and deferrals by clients have added to the problems and means that income expected early in the year, will now be deferred until quarter 2017. Underlying operating profit for the year to 31st March is expected to fall to between 60 – 70m. pounds
Premier Foods PFD has been forced to issue a profit warning after weak third quarter sales which were down by 1% even after a strong December which saw a rise of 4.5%. Mince pies led the way with a 17% surge. With quarter 4 expected to see sales below expectations as a result of the continuance of challenging conditions, trading profit for the full year is now expected to be down by 10%.
FDM Group FDM Anticipates that results for the year to the end of December will be ahead of expectations, following a strong second half, combined with favourable exchange rates. 2016 revenue grew by over 34% on a constant currency basis.
Villas & houses for sale in Greece – visit; http://www.hiddengreece.net
Brand CEO Alan Green discussing May Brexit, Andalas Energy (ADL), Rio Tinto (RIO) & Advanced Oncotherapy (AVO) on TipTV
Brand CEO Alan Green discusses May Brexit, Andalas Energy (ADL), Rio Tinto (RIO) & Advanced Oncotherapy (AVO) with Zak Mir on TipTV
NEX / ISDX
Ecommerce technology provider Netalogue Technologies (NTLP) has secured three contracts in the drinks sector. Brewer Marston’s, pubs operator Enterprise Inns and drinks wholesaler Matthew Clark have bought ecommerce portals. They all used the iTradeNetwork online ordering system previously but this will no longer be available from August so this provides a significant opportunity for Netalogue.
Goldcrest Resources (GCRP) has raised £217,000 at 0.25p a share to provide working capital so that it can execute its plans. Further shares are being issued to Pelamis Investments Ltd for the conversion of a £70,000 convertible loan note at 0.25p a share and from issuing 48.52 million shares at the same price to settle £121,000 of liabilities. Goldcrest plans to seek further gold projects. Peterhouse has been appointed as corporate adviser and broker.
NQ Minerals (NQMI) has secured funding of A$4m and raised £400,000 at 8p a share. The loan is secured on the assets of a subsidiary and has an annual interest charge of 12%, payable quarterly. There is a fee of A$35,000. Greg Lane, who has experience in mine development, has joined the board. He has four million options exercisable at 7p a share.
This year will be an important one for battery technology developer Ilika (IKA). There are discussions with potential licensees for solid state battery technology and there should be deals during 2017. Stereax M250 batteries are being assessed by a number of potential customers. In the six months to October 2016, revenues improved from £254,000 to £329,000 but the operating loss edged up to £2.2m. Full year revenues should grow from £600,000 to £2.5m, which is partly underpinned by recent grant wins. Losses are expected to continue for the time being. The balance sheet is strong and there should be £6.7m in cash at the end of April thanks to cash raised late in 2016.
Packaging supplier Robinson (RBN) says that trading is still tough but it has gained planning permission on part of its surplus property portfolio. The outline planning permission covers 23 acres on two sites. House broker finnCap believes that this could double the value of the land from £5m to £10m – equivalent to 60p a share. The disappointing trading and investment in sales and marketing has led to a 12.5% downgrade in the 2016 pre-tax profit forecast to £2m, and the 2017 forecast has been cut to £2.1m.
Somero Enterprises Inc (SOM) has sparked another forecast upgrade with its latest trading statement. A strong finish to the year means that the earnings per share for 2016 have been upgraded from 22.7 cents to 24.4 cents. There was good demand for newer products and larger concrete levelling machines. Net cash is expected to be $18.7m and the dividend payout ration has been increased from 30% to 40% of net adjusted income. There is even potential for a special dividend.
Cloud-based telecom services provider Cloudcall (CALL) increased its full year revenues by 50% to £4.9m with a large chunk of this growth coming from existing customers. Around 400 customers were added each month last year. There is cash of £3.2m. The expected 2016 loss of £3.5m is similar to the year before but it is expected to be reduced in 2017. Around 85% of revenues are recurring or repeating.
Focusrite (TUNE) says trading continues to be strong and cash is building up. Foreign exchange movements have been favourable. Timothy Carroll has taken over as chief executive.
Tertiary Minerals (TYM) is evaluating acquisitions so that it can generate revenues and profit earlier than would be the case with its current fluorspar interests. Legal changes in Sweden and poor market conditions for fluorspar has delayed progress with the existing assets.
Caledonia Mining Corporation (CMCL) says that its Blanket mine beat production expectations for 2016. There was an 18% increase in fourth quarter gold production (year-on-year) and 2016 gold production was 18% higher at 50,351 ounces. Caledonia owns 49% of Blanket mine. In 2017, production of 60,000 ounces is expected and the mine cost is estimated to be lower than in 2016 at $600-$630/ounce. Investment in infrastructure are improving production but there is a lot more to come and annual production of 80,000 ounces of gold is anticipated in 2021.
Evgen Pharma (EVG) has received a positive interim safety review from the Data Safety Monitoring Board for the use of SFX-01 to treat subarachnoid haemorrhage. This means that the phase II trial will proceed and results should be available in the first half of 2018. So far, 26 patients have enrolled out of a total of 90 people.
Pensions services provider Mattioli Woods (MTW) says that revenues are growing faster than expected. Profit growth has been held back by investment in the business but finnCap has raised its earnings per share estimate from 30.5p to 32.5p. The interim figures are due to be published on 7 February.
Edenville Energy (EDL) has started trial mining at its Rukwa coal project in Tanzania and commercial mining should begin by the end of the first quarter of 2017. The trail mining is generating revenues.
The old guard continues to depart from 1Spatial (SPA) with the latest being Marcus Yeoman.
Canadian oil and gas explorer and producer Zenith Energy Ltd (ZEN) joined the standard list on 11 January. The company, which operates onshore oil and gas fields in Azerbaijan, Argentina and Italy, is already listed on the TSX Venture Exchange. Zenith also produces electricity in Italy. AIM-quoted and NEX-quoted Gunsynd (GUN) has invested £524,000 in Zenith.
Cluff Natural Resources CLNR Believes that the outlook both for the sector and the company showed marked improvement in 2016 with major progress being made in the southern North Sea. Geological and technical work throughout the year resulted in a tripling of total combined P50 resources from 845 BCG of gas to 2.37 TCF. funding for the coming year was also secured.
Frontier Dev plc. FDEV The growth in revenue for the 6 months to 30th November exceeded the boards expectations with a rise of 66% to £18.1m. interim results are expected early in February.
Innova Derma IDP revenue is expected to have risen by just over 80% to about £3 for the 6 months to 31st December. Growth has been led by the success of Skinny Tan which was launched in February through Superdrug. Revenue and earnings are expected to be enhanced in the second half following the entry to the American market in October.
Goals Soccer Centres GOAL claims that it has at long last turned the corner with robust trading and a significant improvement in business during the second half year to 31st December. Modernisation and updating of facilities are said to be responsible for the volume rise of 3.1% which compares with 1% for the year as a whole.
WANdisco WAND maintained its momentum during its second half to the 31st December with a rise in bookings of 109%. The fourth quarter and the year as a whole, both saw rises of 97%. A number of new contracts were obtained and the year ended with a strong order book and sales pipeline. In the 4th quarter the company operated at nearly cash flow break even point and 2017 is expected to show more progress made towards achieving profitability.
Countrywide CWD Suffered badly in quarter four with figures showing the beginning of a slump in the housing market which is going to get worse in 2017. Countrywide is the largest agent in the business with national coverage and local reach, so these figures do not relate just to inner London or the Home Counties. They present a picture of what could be the end of the grossly overheated housing market all over the country. Results for the full year to 31st December are expected to show a 6% drop in transactions. Fourth quarter income declined to £179m. from 2015’s £196m It is expected that sales in 2017 will decline further, impacted by a continuation of lower volumes than in 2016.
Barratt Development BDEV does claims a healthy housing market with strong demand for new houses during its second half to the 31st December and that is all very true, provided you ignore London which is hardly realistic for a national housebuilder. Yesterdays update from Barratt’s showed that sales in London had plunged by over in 50% in the 6 months to 30th December, down from 842 to 367.As against that completions outside London were at their highest level for 9 years but the fall in London was so severe that total completions for the half year fell from 7,626 to 7,180.
The average selling price rose by 3.9% but for the poor private buyer the increase averaged 5.3%. Barrat claims that one of the main reasons for the strength of the market is continued government support, which does raise the oft asked question as to why the government should continue spending taxpayers money to fuel an already overheated market. Cynics may say that it is just the Tories looking after their own and ignoring basic economics.
Total forward sales are up by 15% and profit before tax for the six months is expected to rise by 7%, with a further 7% expected in the first half of 2017
Mitchells & Butler MAB enjoyed strong Xmas trading with what the CEO describes as an encouraging performance. Like for like sales over the 7 weeks to the 7th January rose by 2.9%, compared to a tiny 0.5% for the 8 weeks to the 19th November. Margins however are expected to be lower than in 2015 because of cost pressures
Brand CEO Alan Green talks Tertiary Minerals (TYM), Trifast (TRI) & Burford Capital (BUR) on VOX Markets podcast
Brand CEO Alan Green discusses Tertiary Minerals (TYM), Trifast (TRI) & Burford Capital (BUR) with Justin Waite on the VOX Markets podcast. The interview is 28 minutes, 27 seconds in.