Courtesy SM on iii20 May 2013 18:04
The FT's Small Cap guru Simon Thompson is a repeat buyer of TRI ..........
"The date is also significant for a company in my 2013 Bargain Share Portfolio, Trifast (TRI: 56p), a nuts-and-bolts specialist that celebrates its 40th anniversary this year.
The focus on overseas growth markets is clearly paying off, a point that will become apparent next month when Trifast reports full-year results for the financial year to the end of March 2013. That's because analysts expect the company to report revenues up over 8 per cent to £122m, underlying pre-tax profits over 40 per cent ahead at £7.2m and adjusted EPS 25 per cent higher to 4.7p.
It's worth noting that as lower-margin legacy contracts are replaced with much more profitable contract wins, this boosts operating margins markedly.
A rock-solid balance sheet is a further plus, especially since Trifast's shares are trading only slightly above book value of 51p a share.
The shares rate a 'conviction buy' at current levels."
On a bid-price to offer-price spread of 54p to 56p, I rate Trifast's shares a strong buy ahead of the forthcoming full-year results in June. My six-month target price is 72p, which, if achieved, offers a potential 28 per cent return."