Morning Brief – 13-Nov-2017

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Morning Brief Images 13-Nov-2017

Morning All!

Hope you all had a great weekend.

Zoo Digital (ZOO) – 61p – £44.8m – PER 43.3

Interim Results For The 6 Months To End September 2017 –  Revenues up 63% to $12.7m, adjusted EBITDA up by 34% to $1.3m, Net debt reduced to $3.9m (H1 2016 $6.2m). Revenue in H2 ahead of market guidance, board confident of meeting full year expectations for adjusted EBITDA.

An overly impressive rise this past 6 months, the SP is up 6x. On a PER of 43.3 it seems a bit racy but is it actually still good value here? I just don’t know because I just don’t know how that EBITDA converts into real profit.

Carr’s (CARR) – 146p – £133.4m – PER 13.2

Full Year Results For The 12 Months To 2 September 2017 – Revenue up 9.9% to £346.2m but reported PBT is down 29.0% to £10.0m, with adjusted EPS down 18.3% to 8.9p. Net debt of £14.1m versus £8.1m in Cash last time. Trading for 2018 is currently in-line with the Boards expectations.

Just not encouraged here even though Stockopedia loves it, with a StockRank of 95.

IEnergizer (IBPO) – 45p – £85.6m – PER 4.69

Interim Results For The 6 Months To End September 2017 – Not a bad set of results, Revenue up 6% to $76.0m, PBT up 19% to $12.1m.

The only reason I can see this is so cheap (PER of 4.69) is that HUGE Net Debt, just reported as $75.0m. It’s well over 50% of Mkt Cap. If that was paid down I would be much more interested, for now I will pass.

STM (STM) – 53.5p – £31.4m – PER 10.2

An Acquisition AND A Suspension – Go figure! Suspect the suspension is related in some way to the Previous Update On Budget Changes back in March, but I am guessing.

On the face of it, this looks like a decent company. Stockpedia also likes it, StockRank 96. Need to keep an eye on developments here before taking any kind of action, assuming it is re-admitted.

Will be keen to see the price action on ZOO and IBPO this morning, fingers crossed for those holding STM.

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