Morning Brief – 7-Dec-2017

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Morning Brief Images 7-Dec-2017

Morning All!

S & U (SUS) – 2420p – £290.2m – PER 10.4

Trading Update For The Period 1st August To 6th December 2017 – Demand for products remains robust.

There’s quite a lot to like here (except the £81.1m Net Debt, 25%+ of Mkt Cap), I will put it on my Watchlist for now.

Caretech Holdings (CTH) – 426p – £322.6m – PER 12.0

Preliminary Results For The Year Ending September 2017 – Revenue up 11.4% to £166.0m (2016: £149.0m), underlying PBT up by 12.6% to £29.4m (2016: £26.1m), underlying EPS remained at 38.03p per share due to a share placement – Property portfolio valued at £329m.

Seems reasonably priced here but Net Debt remains high at £147.1m (40% of Mkt Cap). That aside it does have attractions.

Clipper Logistics (CLG) – 426.75p – £421.2m – PER 23.3

Interim Results For The 6 Months To End October 2017 – Headline “Continuing strong growth in linewith expectations”. And, I quite like this, Revenue up 21.1% to £199.7m (2016: £164.9m), PBT up15.6% to £7.9m (2016: £6.9m), EPS up 18.9% to 6.3 pence (2016: 5.3 pence) and the Interim Dividend is up by 16.7% to 2.8 pence per share.

This remains on my Watchlist.

RM (RM.) – 161p – £133.1m – PER 7.48

Trading Update – “Expects results for the financial year ended 30 November 2017 to be ahead of expectations”.

This stock ticks a lot of my boxes, it’s going on my Watchlist, may even take an opening position here this morning as it seems reasonably priced even at this level.

Headlam (HEAD) – 526p – £446.3m – PER 12.5

Trading Update For The 10 Months To End October 2017 – Revenue up 1.7% (CC) and overall growthfor the year is expected to be marginally lower than planned. PBT expected to be in-line (due to work on margins).

At this valuation with a reasonably well covered 4.5% or so Dividend and a decent cash pile any slip from here could make it even more interesting to income seekers. I am going to add this to my Watchlist (even though the Dividend is not mentioned in this update).

Liking a couple of stocks here this morning, just a wee bit nervous at opening new positions at present, so much sh*t going on in the world (Trump, Brixit, Bitcoin bubble, Chinese market fall, (the cricket) to name a few).

I know Peter Lynch said there’s always something to worry about just invest in good companies. BUT it’s hard to get over that hurdle sometimes, even when the company is attractive and I am still 25%+ in Cash at present.

Be careful out there!

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