Morning Brief – 8-Nov-2018

Morning Brief Images 8-Nov-2018

UK Stock Market News Today – 8-Nov-2018

Morning all!

Gattaca (GATC) – 131p – £44.7m – PER 5.5

Preliminary Results For The 12 Months To End July 2018 – Revenue up ever so slightly with Underlying PBT of £12.7m (2017: £16.1m), in line with market expectations – Year end Net Debt remains high at £40.9m (2017: £40.3m). No Final Dividend (in line with revised policy communicated at Interim Results).

Remains on my Avoid list (that Net Debt is just too high for my liking).

Game Digital (GMD) – 28.8p – £50.2m – PER n/a

Final Results For The 52 Weeks To 28th July 2018 – Revenue flat, LBT smaller at -£7.4m (-£10m last time), Cash of £58.7m (£47.2m last time) – No Dividend as investment in Belong remains a priority (Pay To Play performance up 50% YoY in the first 14 weeks).

Remains too difficult for me to work out where this is going to end up so I remain Neutral.

Tracsis (TRCS) – 590p – £167.6m – PER 23.1

Audited Results For The 12 Months To End July 2018 – Revenue up 16% to £39.8m (2017: £34.5m), Operating Profit (before exceptionals) up 22% to £5.9m (2017: £4.9m), Cash at £22.3m (2017: £15.4m), FY Dividend up 14% to 1.6p (2017: 1.4p), Fully Diluted Adjusted EPS up 9% to 25.47p (2017: 23.29p).

I still find the valuation too rich here – I remain Neutral.

Wincanton (WIN) – 215.p – £276.5m – PER 6.9

Results For The 6 Months To End September 2018 – Revenue flat, Underlying PBT and EPS up 7.1% and 8% respectively and the Interim Dividend is up 10.1%. Net Debt down from -£43.5m to -£24.2m. FY to be in-line.

This still looks attractive for those looking for income (an almost 5% yield) but I will remain Neutral as the growth story isn’t so tempting.

Arrow Global (ARW) – 199p – £345.5m – PER 4.58

Results For The 9 Months To End September 2018 – Quite encouraging and expects to meet FY expectations.

I am Neutral here but may well give this a closer look now. As mentioned previously, according to Stockopedia (Normalised) EPS is expected to be up almost 90% this year (to 36.2p) – It’s flagged as a Speculative Value Trap and I am wondering even more so if it’s worth now speculating on.

As always, all comment most welcome!

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