Home » VectorVest » Buy Midwich Group (MIDW) says VectorVest. Another quality ‘under the radar’ growth company.

Buy Midwich Group (MIDW) says VectorVest. Another quality ‘under the radar’ growth company.

UK-based Midwich Group (MIDW.L) is a provider of audiovisual (AV) and document solutions distributor to the trade market at home, Ireland, France, Germany and Australasia. MIDW has a product portfolio across audiovisual categories, such as large format displays, projectors, digital signage and printers, selling to a base of approximately 10,000 customers, most of which are professional AV integrators and IT resellers serving sectors, such as corporate, education, retail, residential and hospitality.

FREE! For free VectorVest analysis on any stock, go to this link here

On July 21 2017, MIDW published a pre-close trading update for the six months ended 30 June 2017. The group said it had traded well during the period, seeing good top line growth across all of its geographies on a constant currency basis helped further by the continued weakness of GBP. In addition, this underlying revenue growth was delivered whilst maintaining overall gross margins in line with those reported for 2016. MIDW also reported that the new Spanish business, Earpro, acquired in March 2017, has had a very positive start contributing ahead of previous expectations in its first three months. As a result of this strong H1 performance and on the basis of current indications of positive H2 sales momentum, MIDW anticipates reporting results for the full year comfortably ahead of its previous expectations. Half-year results for the period will be announced on 12 September 2017.

The latent strength in MIDW and the strength in the balance sheet had been identified by VectorVest as far back as the September interims a year ago. Despite the impressive growth in value and share price since then, the VectorVest GRT (Earnings Growth Rate) recorded today, (reflects a company’s one to three year forecasted earnings growth rate in percent per year), shows a forecasted GRT for MIDW of 28.00%, which VectorVest considers to be excellent. In addition, the VST – the VST-Vector master indicator for ranking every stock in the VectorVest database, logs MIDW at 1.27, which is very good on a scale of 0.00 to 2.00. From a valuation standpoint, VectorVest logs a current rating of 446p per share, indicating MIDW is still undervalued at its current 385p.


The chart of MIDW.L is shown above using my normal notation. Earnings per share (EPS) is growing strongly and this is the engine that is driving the share price. Recently the share jumped strongly (on the day of the trading update) and for the past month has refused to come back and kiss the last old high made in March earlier this year. This is the definition of a strongly bullish trend as discussed in the works of Charles Dow over 100 years ago.

Summary: Regular readers of my articles will by now be fully aware of how effective the VectorVest stock analysis system is at identifying quality ‘under the radar’ growth companies. MIDW is the latest in a long line, and with the RT (Relative Timing) indicator signalling a rating of 1.25, (very good on a scale of 0.00 to 2.00), in the run up to the half year results announcement next week, adventurous investors will be betting on further contributions from the recent Earpro acquisition despite MIDW trading at year highs. The 2.2% yield further underlines the attractive investment opportunity offered by MIDW. VectorVest rates the stock as a buy.

Dr David Paul

Sept 5th 2017

Readers can examine trading opportunities on MIDW 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

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