Morning Brief – 4-Mar-2019

Morning Brief Images 4-Mar-2019

UK Stock Market News Today – 4-Mar-2019

Morning all!

Johnson Service (JSG) – 130p – £478m – PER 13.2

Preliminary Results For The 12 Months To End December 2018 – Organic Revenue growth of 7.8%, Adjusted PBT up 7.1% with Adjusted Diluted EPS up 6.9%. The Dividend is increased 10.7%.

With a fair value here, for me, sub 100p I am have no interest at this price.

Keller Group (KLR) – 555p – £400m – PER 5.9

Results For The 12 Months To End December 2018 – In-line with revised expectations (an 11% decline in Profit). 4 Business units being restructured, capacity added – There’s a healthy Order book and the outlook for 2019 is confident. There’s confidence in the Dividend too, it’s up 5%, it’s well covered and there’s a statement confirming intention to continue.

I have not looked into this in much detail. Growth is poor but the reasonably well covered Yield of 6%+ is not. The main issue is the Debt, it’s HUGE. At present I cannot possibly buy this share.

Tracsis (TRCS) – 639p – £182.5m – PER 22.8

Trading Update For The 6 Months To End January 2019 – H1 in-line, Cash Balance at £18.7m, pipeline of acquisition opportunities remains strong.

I still reckon this is overvalued at this level.

As always, all comment most welcome!

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