ISL.L Share Price (ISL)

Hi AL75 - the info is from morningstar.co.uk http://tools.morningstar.co.uk/uk/stockreport/default.aspx?tab=4&vw=bs&SecurityToken=0P00007OFQ%5d3%5d0%5dE0WWE%24%24ALL&Id=0P00007OFQ&ClientFund=0&CurrencyId=BAS

Thanks lebugue-addick. I can see my calculation was based on past adjusted EPS at 3.22p and not expected EPS as you mentioned. Where did you find that information? Thanks.

The broker FinnCap has a target price of 115p and it's gone through that. EPS for year ending next month are a consensus 7.8p rising to 8.9p for next year for a PE of 14. Hardly demanding.

With a PE of 40 the market is expecting a lot from ISL, so their shares look expensive. The share price is without doubt very bullish and their last trading statement is very positive. Downside: Are they setting themselves up for a fall with the words "significantly ahead"? The expected new business is not signed yet so it is always possible that contracts can be delayed or lost. In the IT market, some firms are golden and will race ahead, but the road is littered with many casualties.

"The Board is confident that the business will deliver a strong performance for the year ending 31 March 2016 with both revenue ahead and profitability significantly ahead of current market expectations. Trading for the 2016/17 financial year is also expected to be significantly ahead of current market expectations". The one word the market loves: SIGNIFICANTLY!!!! only when its significantly AHEAD of course!!!!!!!