Member Info for Bazzaman

I feel that investors have massively overreacted to results from marketing service provider Communisis (CMS: 56.5p). Having run up from 56p to 63p after I advised buying ahead of the full-year release (‘Catalysts for re-ratings’, 24 February 2015), the shares have given back all the gains despite the company reporting profits in line with analysts' estimates - adjusted EPS increased by 10 per cent to 4.75p in 2014 - and announcing a six-year contract with AXA UK for incoming and outgoing marketing and customer communication services. The dividend was hiked by 11 per cent to 2p a share as anticipated, the £4m cost of which is covered almost three times over by annual free cash flow of £11.6m. True, net debt increased by £10m to £35.9m, but this was the result of acquisitions made and year-end borrowings are well within a £65m revolving credit facility, committed until March 2018, and a £5m overdraft that is renewable annually. Earn-outs of around £10m due on acquisitions over the next five years are easily covered by internal cash flow. Moreover, the company has negligible bad debts as 85 per cent of contracts are underpinned by multiyear agreements averaging five years and the top five clients, including Procter & Gamble (PG.), Lloyds Banking Group (LLOY) and Nationwide Building Society, are all blue-chips and account for 63 per cent of the group's annual revenues. As I see it, the only reason for the share price slide is a £21m non-cash writedown of goodwill on acquisitions made in the early years of the last decade and before the current management team took over. True, that was unexpected, and it would have been preferable if the board had communicated this in advance as it's hardly insignificant in terms of a fixed asset base of £205m. But let's not lose sight of the fact that the non-cash impairment charge doesn't impact at all on the future earnings expectations of the company.

finnCap reiterates buy on Trifast, target raised from 131p to 137.5p

Simon is going to update on 6 companies at 12 today, this will be one of them.

Simon is going to update on 6 companies at 12 today, expect this to be one of them.

Simon has confirmed he will be covering this share in an article tomorrow at 12.

Finally, that leaves Aim-traded housebuilder and land developer Inland Homes (INL:65.25p), a company I have followed for the past couple of years during which time the shares have almost trebled from my recommended buy-in price of 23p when I included them in my 2013 Bargian share portfolio. I last updated my view at the start of last month when I re-iterated my buy advice at 57.5p ('A fluid performance', 2 February 2015). Since then the shares have risen 13 per cent and are closing in on my long-term target price of 70p, a valuation that is looking increasingly conservative as it's well below analysts' top-end sum-of-the-parts valuations of 100p a share. The company has released its interim results at the end of this month and an upgrade to my target price looks firmly on the cards. Buy.

Expect Simon from IC to cover this share tomorrow on his lunch time update.

The only thing I can think of holding this back is the weakness of the Euro, which although a factor should still not be enough to keep it at these levels. Roll on the results in April to alleviate any fears.

is likely to grow by 10p max over the next 6 months if we are lucky & with no dividend I think it is time to move the money into better performing stocks that pay a good dividend. GLA if you decide to stay.

Every day this week & 3 days last week PAG have bought their own shares, a great policy to get them while they're cheap & reduce the availability thus ultimately leading to SP rise. PAG said they would do it at their last trading update & true to their word. Great company moving upwards & onwards.

Market overreacted today, will creep back up on proper analysis IMO.

Roll on the results, then we get some interesting movement.

Nothing will happen on this stock until the results later this month. NAV needs to grow again to push this upwards to beyond 70p IMO.

Numis reiterates buy on 32Red, target raised from 80p to 90p

N + 1 Singer reiterates buy on Amino Technologies, target raised from 141p to 148p

On to this morning and COMMUNISIS, a former subject in the weekly column has announced its preliminary results for the year ended 31 December 2014. The communication service provider revealed that revenue for the period had increased by 27% to £343m against the previous £270m which looks reasonable enough. However, due to an impairment charge relating to previous acquisitions, the reported figures came out with a loss of £13.3m. On an adjusted basis, operating profit increased by 21% to £16m, while the adjusted EPS after exceptional items came out at 4.62p. That looks to me like a slight miss on previous Broker guidance though, while it is also worth noting that the net debt figure has increased to £35.9m from £25.7m. There is also the ongoing pension deficit, which in keeping with other companies is dependent on the performance of various financial instruments. That said, on the business front, the overseas segment which now accounts for some 19% of revenues put in a solid performance providing scope for further growth opportunities. Closer to home, multi-year contracts with Lloyds Banking Group and AXA UK should also help underpin the prospects going forward. The company is clearly keen to further expand and deliver on organic growth and holders may prefer to see a period of consolidation within that area before any further acquisitions are made. The shares are off a few pence this morning at 58p against the 55p when I first took a look. Although I feel the shares are worth keeping an eye on, I will probably take a more in-depth look before assessing how I view the prospects over the medium to longer term.

Smart clothes retail and hire company Moss Bros is using its strong balance sheet and cash flows to revamp its business while at the same time funnelling plenty of capital to shareholders through its generous dividend payouts. The company embarked on a five-year store-refit programme in 2012 which is producing encouraging results. At the time of Moss Bros's last trading update, like-for-like sales for the first 19 week of the second half were up 7.8 per cent, which marked an improvement on the first half. That said, discounting and a reduction in the proportion of sales coming from Moss Bros's hire business reined in gross margins, although the impact on earnings was offset by reduced operating costs. As well as the store refits, sales are being boosted by the launch of new brands and by investment in the group's online shop. Given that only 7.4 per cent of sales are currently generated over the internet, there is plenty of room for e-commerce growth. Prospects for the dividend also look rosy due to management's intention to return excess cash to shareholders and the fact that the company has net cash equivalent to about 20p per share.

Can't believe all the good news was already in the price, expect this to climb when the news is digested, blue finish please.

Still in the red when expectation was a good blue today, might still turnaround but disappointing nevertheless.

Down 10% due to 'one-off' exceptional items of £21m resulting in loss after tax. Jam tomorrow as they have got this out of the way if you can be bothered to hold on, better shares elsewhere IMO.