Home » Posts tagged 'Under valuation'
Tag Archives: Under valuation
Buy Gordon Dadds Group Plc (GOR.L) says VectorVest. The company is listed at nearly 40% under valuation & has considerable growth potential.
Gordon Dadds Group Plc (GOR.L), formerly Work Group Plc, is an acquisitive legal and professional services business headquartered in London with a significant back office and technology platform based in Cardiff. The Group targets firms of all sizes and will merge the business into the Gordon Dadds brand or allow a firm to retain their identity and culture but benefit from the back-office technology platform used by Gordon Dadds, enabling the targeting of law firms seeking an alternative solution to the regulatory and investment requirements of the UK legal market. Gordon Dadds LLP has been operating in this way since 2013, successfully integrating firms into its cost efficient platform, and floated on AIM in 2017.
Examine this trading opportunity and a host of other similar stocks. A single payment of £5.95 gives access to the VectorVest Risk Free 30-day trial. More here
On June 28th 2018, GOR published maiden final results for the year ending March 31st 2018, and announced a 23.3% hike in adjusted PBT to £2.96m on revenues 25.3% higher at £31.24m. GOR recommended a maiden dividend of 4.0p on the back of gross assets up to £55m (2017: £24.9m) and an end of year cash balance of £8.9m. CEO Adrian Biles called it a year of “great progress”, “exceeding the expectations that we set for ourselves and for our shareholders.” He added; “We expect to achieve significant further growth during the year from additional acquisitions, together with organic growth arising principally from the increasing cross-referral of clients between the Group’s businesses and as the more specialised businesses take advantage of the Group’s full service capabilities. We continuously examine expansion opportunities and are engaged in discussions with firms in a number of other international jurisdictions. In the UK, we have a good pipeline of potential acquisitions with which we are at various stages of discussion or negotiation.”
The impressive progress by GOR in it’s first year as a listed company did not go unnoticed by VectorVest. A Relative Value flag, (RV – indicator of long-term price appreciation) alerted members in early June, as the level moved above 1, and continued to rise, logging GOR today at 1.57, excellent on a scale of 0.0 – 2.0. Other leading metrics include a GRT (Earnings Growth Rate) of 37%, which also rates as excellent on the VectorVest stock and portfolio management system. Even so, trading today at 177p, GOR is still a long way below the current VectorVest valuation of 281p.
The chart of GOR.L is shown above in my normal format. The share is in a Buy recommendation and has charted a first rising low. The VectorVest revaluation in June and July 2018 is invariably a leading indicator of a high momentum move.
Summary: For a company to complete a listing on AIM and deliver such an impressive set of maiden results is a relative rarity in this day and age. GOR not only achieved that, but it paid a dividend and has ample cash resources on the balance sheet to complete the acquisitions currently under negotiation. Even at this early stage in its life as a listed company, VectorVest sees considerable growth potential, particularly with the stock trading at nearly 40% under valuation. Buy.
Dr David Paul
August 8th 2018
Readers can examine trading opportunities on this and a host of other similar stocks for a single payment of £5.95. This gives access to the VectorVest Risk Free 30-day trial, where members enjoy unlimited access to VectorVest UK & U.S., plus VectorVest University for on-demand strategies and training. Link here to view.
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 30-day 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