Morning Brief – 4-Dec-2017

Morning Brief Images 4-Dec-2017

Morning All!

Not a hugely exciting start to the week here for me…

RhythmOne (RTHM) – 245p – £121.4m – PER 7.54

Unaudited Results For The 6 Months To End September 2017 – Revenue up 72% but still making a big loss.

I still cannot get excited about this.

McColl’s Retail (MCLS) – 290p – £334.0m – PER 13.0

Trading Update For The 13 and 52 Week Periods To 26 November 2017 – Revenue up 28.9% in Q4 and 19.1% for the full year following the successful integration of 298 acquired convenience stores (completed in mid-July). LFL sales are however – Flat. Expecting full year to be in-line with managements expectations.

Still quite like this but can’t quite decide to take the plunge. I feel I may be missing out on a decentgrowth opportunity but on the other hand, it could all, perhaps, go wrong. The Net Debt (£106m on Stockopedia) of 30% of Mkt Cap and sub industry average Operating Margin leaves me on the fence.

Communisis (CMS) – 62p – £129.8m – PER 9.47

CFO Appointment And Trading Update – New CFO appointment seems orderly enough with the existing CFO assisting through Q1 2018. Trading expectations remain unchanged.

This looks OK so what’s holding it back? Perhaps the Net Debt at £28.5m (20%+ of Mkt Cap) and I believe a Pension Deficit circa £40m (30%+ of Mkt Cap). Those willing to accept the above would be investing in what looks like an OK company with a well covered modest Dividend (circa 4%). It’s StockRank is 98.

Have a great day all!

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