Over bought26 Oct 2012 20:35
Book value calculated as total assets minus liabilities is 114.98p at todays closing price of 99.25p, its had a good run since last year but for me to buy and keep as a long term hold I would have to be in at 72p to justify the risks in long term growth prospects of its new marketing strategy/acquisition which is taking over its traditional low growth/profit core business model.
Sales growth is important because it suggests that demand for a company's products or services will be sustained or increasing in the future. Growth rates differ by industry and company size. Sales growth of 5-10% is usually considered good for large-cap companies, while for mid-cap and small-cap companies, sales growth of over 10% is more achievable. It is important to distinguish however between organic sales growth and acquisitive growth, as the former is more sustainable.
3yr Average Annualised sales growth is -5.21, therefore all those in at the 70-80p level i would agree that this is a strong hold and well rewarding with the current dividend cover of 2x increasing to 2.60x and a dividend yield of 5.75% and 6.30% respectively.
I have missed out on this one and since its a low beta stock of just 0.11 I cant see the price coming down to circa 70/80p unless something drastic happens in the world! like another crash, since most of our FTSE stocks are being overvalued on stimulus....we never know!