Morning Brief – 6-Aug-2019

Morning Brief Images 6-Aug-2019

UK Stock Market News Today – 6-Aug-2019

Morning all!

Anexo (ANX) – 176p – £194m – PER 11

Trading Update For The 12 Months To End December 2019 – PBT to significantly exceed current market expectations of £20m.

Was tempted here (looks like pretty good value on forecast 20%+ PBT growth) but do not particularly like (fully understand) the nature of the business here.

Gattaca (GATC) – 149p – £48m – PER 6

Trading Update For The 12 Months To End July 2019 – FY PBT to be slightly above market expectations and Net Debt lower than expected.

Good to see a more positive update and Net Debt down to £25m however it’s still a little too high to get me interested.

SDL (SDL) – 441p – £400m – PER 14

Interim Results For The 6 Months To End June 2019 – Revenue up 28%, PBT up 40%, Adjusted Diluted EPS up 14%. Confident of improved FY profitability in-line with management expectations.

Looks like there’s some value here around this level but not enough for me. Based on the latest Broker note this morning, in my opinion, this looks about fairly valued (492p at the time of writing) on a 1 Year and a 2 Year view considering the Net Cash and small yield – A 10% upgrade to 2020E EPS would make this more attractive.

Walker Greenback (WGB) – 87p – £62m – PER 10

Trading Update For The 6 Months To End July 2019 – H1 challenging but in-line, FY expectations “unchanged although visibility is limited by Brexit and continuing wider macro-economic uncertainties”.

I remain uninterested here at present.

Warpaint London (W7L) – 78p – £60m – PER 7

Trading Update For The 12 Months To End December 2019 – FY Revenue to be circa £50m with PBT to be in the £6m – £7m range.

This looks like a 5% miss on Revenue and a 20%+ miss on PBT. This company always appears cheap for a reason, it is notorious for disappointing – I was so close recently to giving it the benefit of the doubt but I did not, perhaps we all need a bit of gut instinct sometimes!

Zotefoams (ZTF) – 568p – £274m – PER 25

Interim Results For The 6 Months To End June 2019 – Revenue up 9% (CC), PBT up 7%, the Interim Dividend is up 3%.  Expects to meet FY market expectations.

I famously keep saying I see no value here and I retain that view even though it usually keeps going up. At present it’s 20% off the 52 week high and I still don’t see value – Yet again (suppose it’s going up then!)).

As always, all comment most welcome!

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