Morning Brief – 25-Jul-2019

0
13858
Morning Brief Images 25-Jul-2019

UK Stock Market News Today – 25-Jul-2019

Morning all!

CMC Markets (CMCX) – 98p – £283m – PER 12

Q1 Trading Update – LFL Net operating income up but costs marginally higher. Early in the year but still guides FY in-line.

Perhaps there’s value here but the potential of additional regulation still keeps me away from the sector in general.

Discoverie (DSCV) – 438p – £352m – PER 14.7

Q1 Trading Update – Q1 Trading strong, on track to deliver FY in-line with expectations.

Looks way overvalued on a 1 and 2 Year view. Based on the latest Broker note this morning, in my opinion, this looks way overvalued on a 1 Year and 2 Year view.

Findel (FDL) – 239p – £203m – PER 8

Trading Update For The 16 Weeks To 19 July 2019 – Solid start, FY unchanged.

Looks fairly valued on a 1 Year view but with such huge Net Debt I cannot get interested. Based on the latest Broker note this morning, in my opinion, this looks fairly valued on a 1 Year but overvalued on a 2 Year view – Net Debt is HUGE at 100%+ of current Market Cap and almost 8x PBT 2020E.

Gordon Dadds (GOR) – 150p – £43m – PER 6.5

Results For The 12 Months To End March 2019 – Revenue up 69% to £52.6m (£31.2m), Adjusted PBT up 141% to £5.9m (£2.5m), Adjusted Diluted EPS up 79% to 18.8p (10.5p), Total Dividend up 50% to 6p (4p). Integration of Ince now complete and the opportunity to cross sell by practice area and geography is huge.

I am Long here and remain so based on these results and the opportunities ahead.  Based on the latest Broker note this morning, in my opinion, this still looks way undervalued on a 1 Year and 2 Year view with a reasonably well covered 5% yield.

Medica Group (MGP) – 134p – £145m – PER 14.2

Trading Update For The 6 Months To End June 2019 – Expects FY Revenues to be slightly ahead and Profit to be in-line.

Still looks fairly priced around the 150p (at best) or so level.

Robert Walters (RWA) – 520p – £390m – PER 9.4

Results For The 6 Months To End June 2019 – Revenue up 1%, PBT up 4%, Basic EPS up 6% and the Interim Dividend up 13%. FY remains in-line.

Looks overvalued to me.

SimplyBiz (SBIZ) – 211p – £204m – PER 15.2

Trading Update For The 6 Months To End June 2019 – Delivered 20% Revenue growth and 30% Adjusted EBITDA including 3 months contribution from recent acquisition Defaqto. Confident of delivering FY expectations.

I am Long here and meeting expectations would mean I still see enough value to remain so.  Based on the latest Broker note this morning, in my opinion, this looks overvalued on 1 Year view but well undervalued on a 2 Year view.

VP (VP.) – 819p – £330m – PER 8

AGM Statement – Trading has been broadly in-line and well positioned for further progress in the current financial year.

Looks overvalued (at best) here taking into account that Net Debt. Based on the latest Broker note this morning, in my opinion, this looks overvalued here on a 1 Year and 2 Year view especially taking into consideration the rather high Net Debt.

As always, all comment most welcome!

Advertisement
Research Tree Banner