Morning Brief – 26-Mar-2018

Morning Brief Images 26-Mar-2018

UK Stock Market News Today – 26-Mar-2018

Morning all!

Hope you all had a great weekend.

Instem (INS) – 195p – £31.0m – PER 15.5

Interim Results For The 26 Weeks To End December 2017 – Revenues up 19% to £21.7m (2016: £18.3m), Reported PBT of £0.8m (2016: £0.02m), Adjusted fully diluted EPS of 13.8p (2016: 11.2p) with Net Cash of £3.1m (2016: £4.2m). And, a quite positive statement on the future “The Board therefore looks forward to the coming year and beyond with increasing optimism on the back of an enhanced delivery platform, which promises to deliver significant revenue growth, enhanced profitability and improved quality of earnings”.

I really can’t work this one out. It seems like a decent company growing at 20% or so with a PER of 15.5. Something doesn’t quite feel right here though and with a Spread of 5%+ it’s just enough for me to remain Neutral for now.

Taptica International (TAP) – 375p – £253.5m – PER 12.5

Interim Results For The 26 Weeks To End December 2017 – Revenue up 68% to $210.9m (2016: $125.9m), Gross Profit up 75% to $80.6m (2016: $46.0m), with improvement in Gross Margin to 38.2% (2016: 36.5%). The Final Dividend for 2017 will be $0.054 (2016: $0.0432). There’s Cash of $27.0m (30 June 2017: $32.6m). 2018 stronger than last year and in-line with market expectations.

Still like this AIM listed company based in Israel (which usually puts me off) but with a position in XLM I have avoided until now. Reckon if there’s a drop to 350p (30% off it’s all time high) I could take an opening position now (as my XLM position is now risk free, sold half after doubling up) – This is on my Watchlist now. I actually reckon if this was not based in Israel I would already be long here.

Speedy Hire (SDY) – 48.3p – £252.9m – PER 10.6

Trading Update For The Year To End March 2018 – ROCE expected to be circa 11% (7.7% last year), Net Debt £80m after £23m spend on acquisitions (which are performing in-line). FY Revenue expected to be 6% ahead of last year with Adjusted PBT expected to be ahead of the Board’s expectations.

Signs that troubles are behind it, perhaps. But, as the signs aren’t screaming out to me and with NetDebt now 30%+ of Mkt Cap I will not be getting involved for now.

Bioventix (BVXP) – 2068p – £106.3m – PER 21.7

Interim Results For The 6 Months To End December 2017 – Revenue up 13%, PBT up 36%, Interim Dividend up 20% and Cash of £5.6m.

Looks reasonable to me with what looks like strong support around the 1900p level, I will put it on my Watchlist, 1950p.

YouGov (YOU) – 360p – £379.1m – PER 31.1

Interim Results For The 6 Months To End January 2018 – Revenue up 10%, with Statutory PBT up78% and EPS up 60%. There’s Net Cash of £21.3m (£15.0m last time). Confident for the FY.

Great results but I will mention it again – I keep avoiding this one, my bias mainly affected by the accounting warnings by many respected contributors on Stockopedia.

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

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