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Tuesday newspaper share tips: MJ Gleeson, Gemfields

Tue, 27th Sep 2016 14:06
(ShareCast News) - MJ Gleeson's focus on the low-end of the housing market has paid off and looks set to continue to do so, The Times's Tempus said.Instead of focusing on the most expensive plots of land to build on, the builder does just the opposite, buying land that local authorities typically struggle to unload and turning it into affordable homes.Combined with Help to Buy, the company can sell a house for the equivalent of £67 a week versus £74 for a typical council house rent.Margins on such sales are solid too, rising to 31.1% for the half-year to June versus 29.6% one year ago, thanks to both lower land costs and firm cost control.Following its turnaround in 2008 the company has shed itself of debt and operating cash stands at £13.9bn."The focus on low-cost housing, combined with strong margins and promising growth, makes this a compelling investment, Buy," Tempus said.Gemfields has done a good job building up demand for coloured gemstones over the past few years, sending its share price soaring since 2010 and with operations now spanning Zambia, Mozambique, Colombia and Sri Lanka.Profits before tax almost doubled to hit $23.5m with cash up from $28m to $45m for the latest year."A sparkling set of figures. Buy," Tempus mused. Gemfields Grou.

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