The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
EV/EBIT style analysis works beautifully lol
On SVS I can only sell a max of 1000 shares and the price is dead on 95p. Big spread too. I smell poo.
This surged very quickly after the Investors Chronicle tip at c77p and ahead of expected strong results. All of the upside now looks to be factored in so it is likely that there will be some profit taking before the results are issued in case they disappoint on the new higher expectations.
for 30%..EV/EBIT up with action imv
now level 2 is showing two MM's offering at 92p, neither able to offer more than 500 shares and very little activity, that has to be cooperation
Interesting, again cannot buy more than the EMS, frustrating
Hi to you all. I am new to this shares and I wish to know what is the normal spead for buy and selling pennant?
nice rise guys!
It’s also worth pointing out that Pennant’s shares have, on average, underperformed the market by 5 per cent in the three months that have preceded the stellar pre-results run. So the lacklustre performance of Pennant’s shares over recent months, despite the lofty EPS growth expectations highlighted in the interim results announcement, suggests the pattern could be repeated this year, too. Admittedly, cash nearly halved to £1.2m in the six months ended 30 June 2013. But management explained the cash was mainly used to fund the start of some major contracts, and that working capital will improve in the second half as stage payments are received. So we’re not overly concerned, as Pennant’s balance sheet remains strong with no borrowings. SHARE TIP SUMMARY: Despite a three-fold share price rise over the past three years, Pennant’s shares still trade on a modest 11 times forward earnings, which is a 45 per cent discount to the UK software and services sector average forward earnings multiple of 20 for sub-£100m market cap companies. That said, the market cap is still small and the wide bid-offer spread is something investors need to be wary of. But if history is anything to go by, potential gains of over 25 per cent in as little as two months could be on the cards for investors willing to place a small bet. Speculative buy.
Defence-oriented training and software company Pennant International (PEN) flies under the radar of many investors with a market capitalisation of just £20m. Yet the shares' modest valuation, sturdy balance sheet and double-digit earnings growth means it warrants attention and there may be a significant trading opportunity in the run up to the full-year results, which are usually released in mid-to-late March. Buying ahead of results makes sense because over the last three years, Pennant shares have on average outperformed the FTSE Aim All-Share in the month running up to its full-year results (measured to the closing price on results day) by a whopping 36 per cent. The one-month performances have ranged from a 25 per cent gain in 2012 to a 45 per cent gain in 2013. Because management rarely make announcements other than brief trading statements or financial results, Pennant’s shares tend to leap dramatically on the day they are released - assuming the results meet or beat expectations that is. Thankfully, there’s every reason to believe Pennant’s next set of full-year numbers will be just as good as previous years. Revenues organically climbed 38 per cent to £9.8m in the first six months of the year, sending pre-tax profits soaring by over a half to £1.1m. Encouragingly, all of Pennant’s operating divisions - training systems, data services, and logistics software - grew considerably year on year but training was far and away the star performer. Pennant signed its largest ever training contract in March valued at approximately £16m over the next five years, with the potential for extensions up to 20 years. Moreover, a positive outlook statement from chairman Christopher Powell implied confidence in meeting expectations for the rest of the year. "The pipeline is robust and active," wrote Mr Powell, noting "the order book provides good visibility through 2014 and beyond. During the period there has been significant ongoing activity… on a number of significant opportunities, particularly in the defence and rail sectors." Analyst Derren Nathan of WH Ireland says his full-year estimates are well underpinned by the half-year figures but highlights there is "significant upside potential to forecasts, if opportunities [from the pipeline] are converted."
Boom
You're now on "free carry" on JIL? Are you saying you bought in, it went up, you sold your original stake's worth, and left the remainder in your presumably massive portfolio? Well nice one! And yes it is an interesting business model lol
yep...pretty much on free carry...v interesting business model lol
are you using 1H EBIT of £1.15m?,,,if so EBIT of £2.3m plays EV of c£17m, no? so EV/EBIT of 7-8...becoming compelling (5-7 in my book)
Jolly, when calculating the EBIT for the FY, do you factor in some extra growth on top of your HY EBIT x 2 calculation? Because I'm accounting for the cash now but, even so, my EV/E value is 9.08 if we were to presume 2.5m net cash. Sorry to ask but I want to get this right. PS - what do you think of JIL?
Oh yeah I forgot to take account the cash pile whilst calculating the EV. How do I go about doing that properly using net cash rather than just cash (£19m)?
fine for growing company imv... ...depends on your assessment of - management (experienced? aligned?); & - markets (competitive position? growth prospects? Porter framework or whatever has replaced that 1980s stuff)lol)
more like 8-9 imv ...run rate EBIT = 2* interims = 2 *£1.15m = £2.3m ..EV...hmm...depends on how much cash released in 2H...£18-19m (i.e £2-2.5m net cash)?
Ratio of 11 ish. Is that any good?
looks good prospect to me... ....not cheap as chips...but why should it be? Given its good recent performance... and upbeat commentary on prospects ...well done/good spot
EV/EBIt of approx. 8 in march?
trade...buy/sell?.........
Great timing!!! Solid stock here..read my comments from 13oct
WOW!!! Under the radar stock or what!!! Incredible 5 year chart with sp rising from 5p to 80p....consistent revenues and growth and pays dividends!!! Recall we had this on monitor but just keeps going stealthily!!!
Oh and 76.40p to sell, not bad at all! hope we keep rising tomorrow