Morning Brief – 7-May-2019

Morning Brief Images 7-May-2019

UK Stock Market News Today – 7-May-2019

Morning all!

4imprint (FOUR) – 2580p – £724m – PER 22.1

AGM Statement – In a strong position to hit £1bn in Revenue by 2022, first 4 months of 2019 strong with Revenue up 16%, early in the year but Board confident of delivering on FY expectations.

Looks fairly valued here to me.

Begbies Traynor (BEG) – 60p – £69m – PER 11.5

Trading Update For The 12 Months To End April 2019 – FY To be comfortably ahead, entering the new year with a strong Order book and favourable market conditions.

Still think there’s value here (perhaps a lot) but the poor ROCE and Op margin hold me back.

Costain (COST) – 325p – £350m – PER 8

AGM Statement – In-line.

Looks like there’s value here – Low growth and low margin offset by Net Cash and a decent Yield.

Empresaria (EMR) – 74p – £36m – PER 6

AGM Statement – Om course to meet FY expectations (reliant on H2 weightings).

Even on a PER of 6 still doesn’t tempt me – Net Debt is high, Operating margin is low, (EPS) growth is forecast <2% per year and now, H2 weighting too!

Kape Technologies (KAPE) – 90p – £130m – PER 14.9

AGM Statement – Strong start to the year, trading in-line, subscriber number growth exceeding expectations.

I am Long here and this seems good enough reason to remain so for now (based on the expectations (Broker forecasts) I have access to).

SDL (SDL) – 532p – £482m – PER 17.7

AGM Statement – At the end of Q1 trading is in-line with the Board’s expectations.

Would have been nice to have some view on FY here today, I remain of the view that this seems about fairly priced around this level.

Treatt (TET) – 410p – £241m – PER 22

Interim Results For The 6 Months To End March 2019 – Reasonable all round growth circa the 5% – 7% area here. Confident of meeting FY expectations.

I still see no justification for a PER in excess of 20 here (I must be missing something!).

As always, all comment most welcome!

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