Dear CP22 and Rob22927 Feb 2014 14:11
Sorry for not posting here in ages!
CP22,
Happy birthday for the other day! I hope you had a good ‘un!
By the way it looks like I’ve finally found someone on lse who is younger than me – I’m turning 23 in August so I’m a tad older than you!
I have to say that I am beginning to see why you love OMIP so much. I’ll let you know when/if I buy in but, rest assured, it continues to be on my watchlist and has been for months (as you know).
Re: WEBIS – I did check it out but really didn’t like its profit margins where it made 0.35 on revenues of 168.7m. For that reason I’m unlikely to invest tbh, unless I’m missing something crucial of course.
Re: CRV – I’m the same as you. I looked at it but found it tough to understand. It has released news today which shows it is trading below its NAV but, then again, a lot of AIM shares do and it doesn’t mean it’ll rise like you think it should.
Rob,
re: ABDP – I actually quite like the look of this one you’ve found. It has a nice little niche, it has good finances (net assets of 8.2m and cash > liabilities), as well as a large £1.7m contract not included in their last set of results. On the other hand its EV/EBIT is 13.6 at present and, unless it grows very very fast, that is a bit demanding so I’m unlikely to invest.
I’ve spotted a couple of shares that you might like to look at. With no funds spare I’m in neither of course but I certainly am tempted.
The first is MLC (566p). It is a FTSE 250 share that is in the Hotel sector. It announced its results recently and the growth there is absolutely amazing! It has a low PE ratio, low EV/EBIT ratio, high growth (as I said), and EPS jumped from 42p to 70.5p. Previously it was trading at roughly 13 to 14 x EPS so it is now trading at roughly 8 x EPS. Providing it is valued at 13 – 14 x EPS again though it should reach 920p at the very least - 60% above what it is now! If I had money I’d buy into it right now.
The second is ACD. By common standards the fundamentals look good (low pe ratio, lowish ev/ebit ratio, great finances (£5m cash in 2012 year, no debt), and an increasing dividend. ALSO – and this is unusual – it is in the process of buying back 20% of its shares. It started this process July 2013 and shall complete it June 2014, but it suggests the fundamentals shall grow stronger in the coming months because of it. Having said all that, like CRV, it’s an enigma to me because its pre tax profits are higher than its revenue for instance. But, because it is like CRV, you may like it Rob haha!
I’d be interested to know what you both think.
Wishing good luck and good health to the both of you.
Dan