Morning Brief – 11-Apr-2018

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Morning Brief Images 11-Apr-2018

UK Stock Market News Today – 11-Apr-2018

Morning all!

EasyHotel (EZH) – 111.65p – £112.2m – PER 50.1

Trading Update For The 6 Months To End March 2018 – Strong H1 but no mention of inline or not.

It’s cheaper now than last time I looked at it (PER was 78.5). However, I reiterate – I am still wary of this sector (with the rise of Airbnb and Booking) and will not be paying up here, I’m Neutral for now.

Norcros (NXR) – 185.75p – £148.9m – PER 5.92

Trading Update For The 12 Months To End March 2018 – Expected to be in-line, meaning nothing spectacular. Well placed to make progress despite challenging market conditions.

Looks quite good (if the forecasts are achieved) but I will remain Neutral for a few reasons. There’s a decent sized pension deficit and Net Debt here, re-organisation (job cuts), plus concerns on the South African (and I guess UK) side of the business. The ROCE and Operating Margin are nothing to write home about either.

Arena (ARE) – 50.15p – £58.8m – PER 11.1

Results For The 12 Months To End December 2017 – Looks slightly better than in-line. Order book looks good and 2018 has started well.

I quite like this but I just find it difficult to get involved as it just doesn’t ever seem to make any real profit. I am going to put this on my Avoid list now – Due to my inability to value it in a sensible way. There’s plenty of simpler, for me, to understand numbers out there.

Volex (VLX) – 66p – £59.6m – PER 9.05

Trading Update For The 12 Months To End April 2018 – In-line.

After a decent run up from sub 40p to 80p, that 80p just looks like a ceiling here.

Epwin (EPWN) – 79.5p – £113.6m – PER 7.43

Results For The 12 Months To End December 2017 – Headline is “Resilient performance despite subdued markets”.

To me these latest results look awful but looks like they may be priced in, based on a high 12 months ago of 125p or so. Stockopedia loves it (StockRank 93), but I do not, I’m Neutral at best here.

Amiad Water Systems (AFS) – 174.95p – £39.7m – PER 14.1

Results For The 12 Months To End December 2017 – Revenue up 6.3% to $112.3m (2016: $105.6m), PBT up 64.5% to $5.1m (2016: $3.1m), Fully Diluted EPS $0.14 (2016: $0.095), Dividend down to $0.028 (2016: $0.032). Expecting Revenue growth in 2018.

I quite like this but I don’t get the “Expecting Revenue growth in 2018”, it’s hardly inspiring. I just have to remain Neutral for now.

Severfield (SFR) – 73.5p – £220.3m – PER 11.0

Trading Update For The 6 Months To End March 2018 – In-line.

Remains on my Watchlist at 67p for now.

As always, all comment most welcome – Have a great day!

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