Morning Brief – 15-Nov-2017

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Morning Brief Images 15-Nov-2017

Morning All!

Utilitywise (UTW) – 55.75p – £43.8m – PER 6.05

Final Results Timing Update – Extended from 21 November to December – Usually signal (more) bad news!

I’m staying out of the way here.

Walker Greenback (WGB) – 210.5p – £149.2m – PER 12.6

Trading Update In Respect To The Year Ending January 2018 – Expects Profits for the year to be 10%lower than it’s expectations (only 6 weeks after saying it was growing ahead of expectations!).

I considered the previous update “cloudy” and I think this is naughty (6 weeks!). I will be avoiding this one for now.

Game Digital (GMD) – 40.13p – £68.3m – PER n/a

Final Results For The 12 Months To 29 July 2017 – This looks worse than expected.

I bought in here in the summer as it looked very cheap – I have sold out half for 100% (as I usually do when doubling up) and continue to hold the rest, basically for free. I would consider adding only if the price looks very cheap again.

AB Dynamics (ABDP) – 762.5p – £147.9m – PER 26.3

Final Results For The 12 Months To End August 2017 – Revenue up 20.0% to £24.6m (2016: £20.5m), adjusted Operating Profit up 26.2% to £5.9m (2016: £4.7m), adjusted fully diluted EPS up 22.5% to 28.28p (2016: 23.09p), Dividend 3.331p for the year up 10% and Cash of £9.6m (2016: £10.4m). And, the record order book provides good visibility into Q3 2018.

A good update but I just have a couple of concerns. Like Stockpedia (Value = 10), I am concerned about the value at these levels and the fact that this is the last update from the current Chief Exec. Those things aside, I quite like it.

Premier Foods (PFD) – 36.5p – £322.4m – PER 5

Half Year Results For The 6 Months To End September 2017 – Seems like a poor update to me and there’s plenty of concerns here for me anyway.

There’s loads of Net Debt of over 150% of Mkt Cap and the Pension deficit of circa £100m takes this to 200% of Mkt Cap, give or take a few quid. And, the issue of a new £210m high yield bond in June! This just looks like trouble ahead and it’s not for me.

Avon Rubber (AVON) – 1065p – £348.1m – PER 16.2

Final Results For The 12 Months To End September 2017 – Seems in-line with/slightly ahead of expectations – In CC, Revenue up 4.5%, adjusted Operating Profit up 16.1% and adjusted EPS up10%, the Dividend is up 30% and there’s Cash of £24.7m (up £2m).

Quite like the look of this although it’s probably fairly priced here.

A bit of excitement here this morning!

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