Tipped overnight on Motley Fool19 Nov 2015 07:28
Nice overnight plug on Motley Fool:
Https://www.fool.co.uk/investing/2015/11/18/should-you-invest-in-car-stars-carclo-plc-or-gkn-plc/
"Investor appetite driving higher
Shares in Carclo (LSE: CAR) have gone absolutely gangbusters during Wednesday trading, and the business was recently dealing 10% higher from the previous close. Investors have continued to pile in following Tuesday’s bubbly trading update, giving the industrial chemicals play — which had conceded a third of its value since May up until yesterday’s release — rare reason for cheer.
Carclo advised that total revenues leapt 17% during April-September, to £57.2m, a result that propelled underlying pre-tax profit to £41m, an 80% rise.
The company had its LED Technologies arm — which builds lights for the automotive industry — to thanks for its stratospheric sales surge, with revenues here galloping 48% higher in the period to £21.2m. And I expect revenues to continue to climb as auto sales, and in particular those across the ‘luxury’ sector, march higher in the years ahead.
And despite today’s stellar share price rise, I believe that Carclo still provides terrific value for money. The West Yorkshire business is expected to experience a 20% earnings blast in the 12 months to March 2016, resulting in an ultra-low P/E ratio of 11.7 times. And this moves below the bargain barometer of 10 times for fiscal 2017, a further 21% bottom-line bounce pushing the reading to just 9.7 times.
These brilliant earnings predictions are anticipated to drive dividends significantly higher, too. Last year’s payment of 2.75p per share is predicted to jump to 3p in 2016, yielding a handy 2.7%. And a projected dividend of 3.3p per share for the following year pushes the yield to 3%."
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