Home » VectorVest » Reiterate buy Victoria (VCP) says VectorVest. After a stellar year it could be Groundhog Day once again?

Reiterate buy Victoria (VCP) says VectorVest. After a stellar year it could be Groundhog Day once again?

Founded in 1895, Kidderminster based Victoria Plc (VCP.L) engages in the design, manufacture, export, and distribution of carpets and carpet yarns. It offers tufted carpets and Wilton woven products for residential and commercial markets. The company also supplies woven Wilton broadloom carpets and carpet tiles for the corporate / commercial sector, as well as Axminster carpets for hotels, casinos, and cruise liners. In addition, it is involved in importing and distributing wool and natural floor coverings. VCP operates in the UK, Australia, Ireland, and Canada.

Following a strong set of FY results, on August 31 2017, AIM listed Victoria updated on trading, and the board confirmed it had continued to make “good progress” in its key UK, European and Australian markets, and was on track to meet “all objectives” for the current financial year. “In addition to organic growth, the group continues to work on further acquisitions – in particular in Europe – and there is no shortage of high quality opportunities,” the board said in its statement. “With a strong platform for growth in place the board continues to remain confident for the future and committed to delivering returns for shareholders.” Interim results are scheduled for November 2017.

VectorVest first reported on the potential at VCP in Sept 2016, and then again on April 5 2017, where we noted strong earnings growth and generally unfulfilled potential. In April we flagged a value of 689p, and although the stock dipped briefly in line with market after that, it bounced back strongly to record a year high of 647p following the results. Despite this performance, the GRT – Earnings Growth Rate, (reflecting one to three year forecasted earnings growth in percent per year) still records a rate of 28% for VCP, which VectorVest considers to be excellent. Added to this the RT (Relative Safety) metric, which in April only rated VCP as fair, has dramatically improved, with a rating of 1.37, which is very good on a scale of 0.00 to 2.00. Finally VCP’s valuation has increased to 729p, which means at the current 625.50p per share, the stock is once again undervalued.

vcp

The chart of VCP is shown above using my normal notation showing clearly a strong bull trend of rising price bottoms over the past year. The resilience shown in the face of a very negative few days trading on the overall market from the 4th to the 8thSeptember is also a bullish sign. Of note is the fact that in the last pullback, in the first weeks of August 2017, the share refused to go back and kiss the last major old high. This is the definition of a strong trend as defined by Charles Dow over 100 years ago. The trend looks set to continue as the overall market hopefully shrugs off its summer sleep.

Summary: Groundhog day for VCP? As we once again look at this quality company, we can see how the criteria identified by the VectorVest stock analysis and portfolio management system this time last year has materialised into a solid year of growth and a doubling in the share price. We fully expect this to continue, as the excellent visibility provided in the August trading statement and bullish charting signals indicate the VCP growth story is set to continue.

Dr David Paul

September 12 2017

Readers can examine trading opportunities on VCP 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

VectorVest Unisearch

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

Leave a comment

I would like to receive Brand Communications updates and news...
Free Stock Updates & News
Join over 3.000 visitors who are receiving our newsletter and learn how to optimize your blog for search engines, find free traffic, and monetize your website.
We hate spam. Your email address will not be sold or shared with anyone else.