Morning Brief – 8-Jan-2018

Morning Brief Images 8-Jan-2018

Morning All!

A rather hectic start to the week…

Avingtrans (AVG) – 193.25p – £59.3m – PER 36.3

Trading Update For The 6 Months To End November 2017 – An in-line update.

There’s things I like here and things I dislike. The rollercoaster ride of the Revenue, Profits, Share price and the PER of 36.3 is just enough to put me off.

H & T (HAT) – 326.5p – £122.2m – PER 10.5

Trading Update For The 12 Months To End December 2017 – Full Year PBT to be above current market expectations.

I have liked the look of this for a while and if I was not already involved in Ramsdens Holdings (RFX) I would find it tricky to pick between the two. Perhaps I should hold both!

McBride (MCB) – 222.5p – £405.4m – PER 13.1

Trading Update For The 6 Months To End December 2017 – An in-line update, but wait a minute! It’s in-line with last year – “full year earnings to be broadly in line with the prior year”.

Expect this will get a bit of a battering here today, something I will be avoiding for some time.

Mothercare (MTC) – 62p – £105.9m – PER 8.99

Trading Update For The 12 Weeks To End December 2017 – Ouch! UK LFL sales down 7.2% (international down 3%), online sales down 6.9% and lower margins.

A share already on my Avoid list and one that will remain there.

Craneware (CRW) – 1520p – £409.8m – PER 35.7

Trading Update For The 6 Months To End December 2017 – H1 strong and a significant new contract win too. Renewals (in value) at 100%. Expects Revenue and EBITDA to be up in H1 15% – 18%.

I still quite like this but on a PER in the 35 range I would expect more growth that 15% – 18%. As I note I do remember also saying this when the SP was 1250p and the PER was 30!

Dialight (DIA) – 550p – £178.9m – PER 19.9

Trading Update – Chief Exec has been replaced. Expecting Revenue of £181m and EBIT of £9.7m this year, Cash of £12.8m.

These estimates are even lower than the woeful ones issued previously. It remains on my Avoid list for now.

System1 (SYS1) – 399.7p – £49.8m – PER 18.1

Trading Update – It gets worse – Gross Profit this year now expected to be 20% lower than last year.

Much of this bad news may already be in the price. For me it still seems too expensive.

Bango (BGO) – 259.75p – £172.5m – PER 123.7

Trading Update For The 12 Months To End December 2017 – An in-line update.

The valuation is crazy!

Sorry about the delay in posting, all this news took me by surprise.

Hopefully there’s not too many mistakes!

A good day to all.

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