Morning Brief – 2-Oct-2017

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Morning Brief Images 2-Oct-2017

Morning All!

Haynes Publishing (HYNS)

Acquisition – Fair play to those that spotted the value and potential in Haynes, the share price having almost doubled this past 12 months. This acquisition, funded from existing Cash and banking facilities feels like a good move. The Chairman has this to say “this acquisition will significantly strengthen the Group’s professional data solutions offering in the UK and provide cross over benefits for Haynes’ consumer division.”

Even with this latest news, on a PER of 17.2 here, I am still not converted, I remain NEUTRAL.

Plastics Capital (PLA)

Trading Update For The Financial Year To Date (the 6 months since 31 March 2017) – “In-line with market expectations” and a year of good progress is anticipated. There does seem to be some caution here though.

This company seems OK on the face of it except for that Net Debt of £16.3m (35% or so of Mkt Cap). The SCVR guys and other Stockopedia members have also flagged issues (most recently here).

Renew Holdings (RNWH)

Trading Update For The Year Ended September 2017 – “In-line with market expectations” and this is positive

59d1e3720f9cbcap2.PNGRevenue, Profit and EPS growth is steady here. ROCE is great at 50% and the rising 2%+ Dividend yield is quite well covered. The move to Net Cash is also good news. I quite like this but on a PER of 12.1 it seems fairly priced around here.

Treatt (TET)

Trading Update For The Year Ended September 2017 – Expects to be “comfortably in-line with its expectations which were revised upward during the course of the year”.

Doubled this past 12 months it’s on a PER of 23 here. The figures look good and I guess comfortably in-line with revised upwards forecasts is pretty good news. However, I just can’t help but think (in a bull market that seems to be slowing) this is still a little expensive here (even at 10% off it’s all time highs).

Numis (NUM)

Trading Update For The Year Ended September 2017 – A positive update confirmed by this statement…

59d1ebf2204e1cap3.PNG

I like the look of this company, nice all round growth which seems to be around the 15% mark. The ROCE is great (20%+), the Dividend of 4%+ is reasonably well covered and there’s plenty of Cash too. Kicking myself for not getting in earlier in the year.

Nothing to get me overly excited in the markets here this morning.

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