Shares mag19 Jan 2012 08:21
play of the week
Extract:
"Downgraded consensus for January 2012
points to annual pro ts of £6.6 million,
earnings of 5.5p and a 1.75p payout. For 2013,
analysts are looking for pro ts to rebound
by 27% to almost £8.4 million for 6.7p of
earnings and a dividend hike to 2p. Based
French Connection
looks a fantastic bargain
on those metrics, French Connection trades
on a prospective price/earnings ratio (PE) of
7.2 falling to 5.9 for next year. It also o ers a
well-covered 4.4% yield.
At the last count (31 July), French
Connection’s balance sheet was ush with
£30.9 million net cash, equating to 80% of
its bombed-out market cap. Strip out those
funds and the market is actually valuing the
trading business at £8.1 million, or less than
next year’s forecast pro ts."