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Buy Hastings Group Holdings #HSTG says VectorVest. Strong interim results and improved fundamentals provide platform for further growth
Founded in 1996 in Bexhill-on-Sea on the Sussex coast, Hastings Group (HSTG.L) is one of the fastest growing general insurance providers to the UK market, with 2.7m live customer policies and employing over 3,400 colleagues at sites in Bexhill, Leicester, Gibraltar and London. The group, which also trades via ‘Hastings Premier’, ‘Hastings Essential’, ‘Hastings Direct SmartMiles’, ‘People’s Choice’ and ‘insurePink’, provides straightforward products and services to UK car, bike, van and home insurance customers with around 90% of policies directly underwritten by its Gibraltar based insurer, Advantage Insurance Company Limited. The Group operates as an integrated insurance provider with two businesses. The Group’s Retail business, Hastings Insurance Services Limited, is responsible for the end customer pricing, fraud management, product design, distribution and management of the underlying customer relationships. The Group’s Underwriting business, Advantage Insurance Company Limited, engages in risk selection, underlying technical pricing, reserving and claims handling.
Examine this trading opportunity and a host of other similar stocks. A single payment of £5.95 gives access to the VectorVest Risk Free 30-day trial. More here
On August 8th 2018, HSTG published interim results for the six months ended 30 June 2018. HSTG reported a 9% increase in net revenue to £376.3m, with strong growth in adjusted operating profit, up 22% to £105.1m after including £14.6m of prior year VAT recovery and a £7m impact from adverse weather in Q1. HSTG reported sustained growth (up 6%) of live customer policies to 2.7m, which resulted in an increase in share of the UK private car insurance market to 7.5% from 7% previously. Significantly the group also reported a strong solvency position, with a Solvency II coverage ratio of 171%, up from 167% at 31 Dec 2017, a significant increase in free cash generated, up £42.0m to £107.8m for the period and a 10% increase in the interim dividend to 4.5p per share. CEO Toby van der Meer said the group’s strong financial position and continuing cash generation “means we remain on track to meet all our 2019 targets and I would like to thank my 3,400 colleagues for what they do for our customers and each other, every day. It is their hard work, passion and commitment that has achieved a set of results that we can all be proud of.”
VectorVest metrics flagged up the progress of this stock to members as the key RT (Relative Timing) metric ticked up over 1 in early May 2018. The HSTG share price and RT metric fell back from that point and bottomed out at year lows around 229p in July, but subsequently both share price and RT metric moved sharply higher. Today, the HSTG RT metric, (a fast, smart indicator of a stock price trend) logs the stock at 1.29 – very good on a scale of 0.00 to 2.00, but the RV (Relative Value) metric, (an indicator of long-term price appreciation potential) logs HSTG as excellent at 1.42 (also on a scale of 0.00 to 2.00). The stock continues to register an excellent GRT (Earnings Growth Rate) rating of 20%, but still offers considerable scope for further upside trading at 270p against a current VectorVest valuation of 367p.
A weekly chart of Hastings is shown above. After a strong upmove the share retraced to 78% of that move. The latter is a support level used by Fibonacci orientated traders. From this level after a two-month period of accumulation the share price has advanced and is currently on a VectorVest Buy signal. The major reverse divergence also known as a “slingshot” between the price and the MACD indicator is very positive for a further upside move when the mood of the overall market improves.
Summary: Motor and general insurance is an incredibly competitive and fast-moving industry, where market leaders have to continually evolve, while at the same time retaining careful cost controls. With its broad product portfolio, HSTG is arguably one of the finest exponents of this particular art, as demonstrated by the strong set of interim results. Of particular note is the strong solvency position and free cash generation, essential components for growth, that no doubt give the group CEO his clearly stated confidence in the full year outcome. Given the disparity between the current share price and target, supported by a bullish chart, VectorVest recommends the shares as a buy.
Dr David Paul
September 5th 2018
Readers can examine trading opportunities on this and a host of other similar stocks for a single payment of £5.95. This gives access to the VectorVest Risk Free 30-day trial, where members enjoy unlimited access to VectorVest UK & U.S., plus VectorVest University for on-demand strategies and training. Link here to view.
VectorVest Unisearch
On VectorVest a simple search using the Unisearch tool will quickly find shares that are undervalued with good fundamentals that have just issued a Buy recommendation. This will give the active trader a short list of many high probability trading opportunities each week. Traders now have the opportunity to spend five weeks discovering VectorVest’s unique simplicity, automation and independent guidance. Just £5.95 buys a 30-day trial to enable deep exploration, or how the system can assist in smarter trading in as little as 10 minutes a day. Powerful tools. Proven strategies. Unique Perspectives.
Link here for more info and to set up a trial.
European Financial Publishing Limited T/A VectorVest UK (VectorVest) is authorised and regulated by the Financial Conduct Authority under register number 543038. You should remember that the value of investments and the income derived therefrom may fall as well as rise and you may not get back the amount that you invest. Past performance is not a reliable guide to the future. This material is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. If investors are in any doubt of the suitability of an investment given their individual circumstances, they are recommended to contact an investment manager or independent financial adviser who may be able to provide tailored advice. Opinions expressed whether in general or both on the performance of individual securities and in a wider economic context represent the views of VectorVest at the time of preparation. They are subject to change and should not be interpreted as investment advice. VectorVest and connected companies, clients, directors, employees and other associates, may have a position in any security, or related financial instrument, issued by a company or organisation mentioned on this site. European Financial Publishing Limited is a company incorporated in Scotland under Company Number SC357322 with its registered address at Exchange Tower, 19 Canning Street, Edinburgh EH3 8EH. Email: support@VectorVest.com
Reiterate buy Taptica #TAP says VectorVest. More growth to come from this dynamic technology company.
AIM listed Taptica International (TAP.L) is a global leader in advertising technologies that operates in more than 70 countries. It has two revenue streams: performance-based marketing, provided by its Taptica business, and brand advertising, provided by its Tremor Video DSP business. The Taptica business is an end-to-end mobile technology advertising platform that helps the world’s top brands reach their most valuable users with the widest range of traffic sources available today. Tremor Video DSP is the leading programmatic video platform, matching advertisers with audiences -wherever they may be. The Company works with more than 600 advertisers including Amazon, Disney, Twitter, OpenTable, Expedia and Zynga. Taptica is headquartered in Israel with offices in San Francisco, New York, Tokyo, Beijing, Seoul and London.
Examine this trading opportunity and a host of other similar stocks. A single payment of £5.95 gives access to the VectorVest Risk Free 30-day trial. More here
On Sept 4th 2018, TAP published interim results for the six months ended 30 June 2018. Revenue increased by 119.4% to $144m, with gross profit 126.4% higher at $58.5m and a 40.6% improvement in gross margin. The Company also paid an interim dividend of $0.0398 per share, and following a $30m fundraise, net cash at 30 June 2018 stood at $42.1m (31 Dec: net debt of $4m). CEO Hagai Tal said that adding household brands such as GlaxoSmithKline and Whole Foods to the list of Tier 1 clients at Tremor “demonstrates good growth in our performance-based business unit reflecting the successful execution on our strategy to expand into new geographies.” He added that TAP expects sustained improvement in margins through increased operational efficiencies, economies of scale and technology enhancements. “As a result, we expect EBITDA for full year 2018 to be ahead of market expectations.”
VectorVest highlighted the potential of TAP in two blog entries on the 21st March and 11thJuly 2017. At that stage the share was trading at 295p. TAP shares have consistently flagged excellent RV metric readings since that time, (RV is indicator of long-term price appreciation potential), and today logs at 1.4, which is excellent on a scale of 0.00 to 2.00. The key RT (Relative Timing) metric, (a fast, smart indicator of a stock price trend) also logs at 1.29, which is rated by VectorVest as very good on a scale of 0.00 to 2.00, and this is coupled with a GRT (Earnings Growth Rate) metric of 20%, also very good. Today TAP shares have moved higher to trade at 360p, but despite this, the stock is still some way below the latest VectorVest valuation of 504p.
A weekly chart of TAP.L is shown above since the listing. The share retraced during the first four months of 2018 to 78% from the listing to January 2018. The retracement occurred in 3 waves which FIB orientated traders consider a corrective waveform within an overall bullish scenario. The share has charted a treble bottom at the very important FIB level and looks set for further gains and an attack on the highs made in January 2018.
Summary: In our comments last year, we noted that TAP was ‘in serious growth mode’ despite having already delivered spectacular returns for its early stage shareholders. Since that time, TAP has raised additional funds for a warchest, delivered impressive growth in revenue and profits and paid a dividend. Some may now take the view that the major period of growth is over, but comments from the CEO and a bullish charting picture indicate otherwise. VectorVest believes there is a lot more to come from this dynamic technology company. Buy.
Dr David Paul
September 5th 2018
Readers can examine trading opportunities on this and a host of other similar stocks for a single payment of £5.95. This gives access to the VectorVest Risk Free 30-day trial, where members enjoy unlimited access to VectorVest UK & U.S., plus VectorVest University for on-demand strategies and training. Link here to view.
VectorVest Unisearch
On VectorVest a simple search using the Unisearch tool will quickly find shares that are undervalued with good fundamentals that have just issued a Buy recommendation. This will give the active trader a short list of many high probability trading opportunities each week. Traders now have the opportunity to spend five weeks discovering VectorVest’s unique simplicity, automation and independent guidance. Just £5.95 buys a 30-day trial to enable deep exploration, or how the system can assist in smarter trading in as little as 10 minutes a day. Powerful tools. Proven strategies. Unique Perspectives.
Link here for more info and to set up a trial.
European Financial Publishing Limited T/A VectorVest UK (VectorVest) is authorised and regulated by the Financial Conduct Authority under register number 543038. You should remember that the value of investments and the income derived therefrom may fall as well as rise and you may not get back the amount that you invest. Past performance is not a reliable guide to the future. This material is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. If investors are in any doubt of the suitability of an investment given their individual circumstances, they are recommended to contact an investment manager or independent financial adviser who may be able to provide tailored advice. Opinions expressed whether in general or both on the performance of individual securities and in a wider economic context represent the views of VectorVest at the time of preparation. They are subject to change and should not be interpreted as investment advice. VectorVest and connected companies, clients, directors, employees and other associates, may have a position in any security, or related financial instrument, issued by a company or organisation mentioned on this site. European Financial Publishing Limited is a company incorporated in Scotland under Company Number SC357322 with its registered address at Exchange Tower, 19 Canning Street, Edinburgh EH3 8EH. Email: support@VectorVest.com
Buy 1pm Plc #OPM says VectorVest. This Niche Financial Sector Operator Currently Offers an Attractive Investment Proposition
Founded in Bath, UK in 1988, AIM listed 1pm Plc (OPM.L) is an alternative finance provider to the SME sector. OPM provides Lease Finance, Hire Purchase, and Business Loans to small and medium-sized enterprises (SMEs) via a network of brokers across the UK. The Company offers tailored finance packages to suit customer requirements.
Examine this trading opportunity and a host of other similar stocks. A single payment of £5.95 gives access to the VectorVest Risk Free 30-day trial. More here
Ahead of its FY results announcement scheduled for Sept 12 2018, on June 27th 2018 OPM published a trading update. The Company said that final results will show a record year on year increase in revenue and profit, along with an increase in EPS in excess of 20%. FY revenues are expected to be 75% higher at £30m, while the blended cost of borrowing will be reduced to less than 4% (2017: approx 5.3%) and will reduce further as the facility with British Business Bank is utilized.
CEO Ian Smith said the preliminary results “mark the successful culmination and implementation of the buy-and-build strategy pursued over the past three years, the strength of our operating model of being both a funder and a broker and our cautious approach to risk. “ He added, “The Group is now better placed than ever to benefit from further organic growth and the operating synergies that flow from being a multi-product provider of finance to the resilient UK SME sector. We look forward to continuing to build value for our shareholders.”
In late July 2018, the key VectorVest RT (Relative Timing) metric (a fast, smart indicator of a stock price trend) for OPM moved sharply higher and over 1 as the stock headed toward 6 month lows at 43p. The remainder of July and August witnessed a sharp push higher for the OPM RT metric, through to today’s reading of 1.44 – excellent on a scale of 0.00 to 2.00. This move has been accompanied by corresponding share price growth, with the stock also registering a good GRT (Earnings Growth Rate) rating of 14%. Cautious investors may want to wait to see further validation of this move higher, but even so VectorVest logs a valuation of 67p per share against today’s 53p.
A weekly price chart of OPM.L is shown above over a period of 3 years showing the potential turnaround situation. The Earnings per Share (EPS) is shown as the blue line study on the window below the price. The latter has increased strongly over the past three years while the share price has traded in a range defined by the trendlines on the chart and in the process charted a treble bottom formation. Over the past month the share has risen in rising volume which is a positive signal. The share is on a BUY recommendation on VectorVest with a technical target similar to the valuation of 70p. Cautious investors should wait for a weekly close above the upper trendline shown on the chart.
Once again, the VectorVest stock analysis and portfolio management platform has identified a niche financial sector operator as a potential growth company. Arguably the VectorVest metrics have flagged up OPM earlier than previous sector recommendations, and therefore cautious investors may decide to look elsewhere. But it’s the early bird that catches the worm, and for adventurous investors, VectorVest believes that OPM offers an attractive investment proposition with near to mid term upside.
Dr David Paul
August 29th 2018
Readers can examine trading opportunities on this and a host of other similar stocks for a single payment of £5.95. This gives access to the VectorVest Risk Free 30-day trial, where members enjoy unlimited access to VectorVest UK & U.S., plus VectorVest University for on-demand strategies and training. Link here to view.
VectorVest Unisearch
On VectorVest a simple search using the Unisearch tool will quickly find shares that are undervalued with good fundamentals that have just issued a Buy recommendation. This will give the active trader a short list of many high probability trading opportunities each week. Traders now have the opportunity to spend five weeks discovering VectorVest’s unique simplicity, automation and independent guidance. Just £5.95 buys a 30-day trial to enable deep exploration, or how the system can assist in smarter trading in as little as 10 minutes a day. Powerful tools. Proven strategies. Unique Perspectives.
Link here for more info and to set up a trial.
European Financial Publishing Limited T/A VectorVest UK (VectorVest) is authorised and regulated by the Financial Conduct Authority under register number 543038. You should remember that the value of investments and the income derived therefrom may fall as well as rise and you may not get back the amount that you invest. Past performance is not a reliable guide to the future. This material is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. If investors are in any doubt of the suitability of an investment given their individual circumstances, they are recommended to contact an investment manager or independent financial adviser who may be able to provide tailored advice. Opinions expressed whether in general or both on the performance of individual securities and in a wider economic context represent the views of VectorVest at the time of preparation. They are subject to change and should not be interpreted as investment advice. VectorVest and connected companies, clients, directors, employees and other associates, may have a position in any security, or related financial instrument, issued by a company or organisation mentioned on this site. European Financial Publishing Limited is a company incorporated in Scotland under Company Number SC357322 with its registered address at Exchange Tower, 19 Canning Street, Edinburgh EH3 8EH. Email: support@VectorVest.com
Buy Staffline #STAF says VectorVest. Strong track record, plus the stock continues to offer plenty of capital and dividend growth potential.
Established in 1986, Staffline (STAF.L) is now the UK’s market leading Recruitment and Training group. It has two divisions namely Recruitment and PeoplePlus. Staffline Recruitment is the UK’s leading provider of flexible blue-collar workers, supplying over 60,000 staff per day to c. 1,500 private sector clients, across a wide range of industries including agriculture, drinks, driving, food processing, logistics and manufacturing. It operates from over 400 locations in UK, Eire and Poland. The PeoplePlus Division is the leading adult skills and training provider in the UK, delivering apprenticeships, adult education, prison education and skills-based employability programmes across the country.
Examine this trading opportunity and a host of other similar stocks. A single payment of £5.95 gives access to the VectorVest Risk Free 30-day trial. More here
On July 25th 2018, STAF published interim results to June 30th 2018. Group revenues grew 12.4% to £481m, while underlying PBT fell 6.8% to £15m following four acquisitions and digital investment into Recruitment, and the acquisition of LearnDirect Apprenticeships for PeoplePlus. Underlying diluted EPS fell 5.8% to 47.2p, while the interim dividend was increased by 2.7% to 11.3p. CEO Chris Pullen said STAF had made an excellent start in what was the first year of a five-year growth strategy to increase underlying diluted EPS to 200p. He added, “We are confident that the strategic decisions taken in the first half of 2018 will enable us to deliver our current 2018 expectations and provide the basis for our continued future growth.”
STAF first came to the attention of VectorVest as the key RT (Relative Timing) metric ticked up over 1 in early April 2018. A sharp drop to year lows of 880p in June flagged further alerts, since which time both the share price, and RT numbers have moved sharply higher. Today, the STAF RT metric, (a fast, smart indicator of a stock price trend) logs the stock at 1.46 – excellent on a scale of 0.00 to 2.00. The RV metric, (an indicator of long-term price appreciation potential) logs STAF as good value at 1.39 (on a scale of 0.00 to 2.00), and the stock also registers an excellent GRT (Earnings Growth Rate) rating of 21%. Despite trading at 1,208p, VectorVest still sees further upside for STAF shares through to a current valuation of 1,575p.
To highlight the long-term performance of STAF.L the price action over the last 8 years is shown above with earnings per share (EPS) shown in the window below the price. The share has been trading within a consolidation pattern since 2016 and is presently nearing a breakout of that pattern. The 8-year weekly chart above presents a very bullish situation if such a breakout should occur with a technical target of over 20 pounds over the next few years. The technical target is based on the size of the trending move from 2011 to 2016. The share is on a Buy recommendation on VectorVest after charting a double bottom pattern at support during 2018.
Summary: During the thirty-two years it has been in existence, Staffline has delivered impressive and consistent growth as a company. Indeed, sales revenues for the past ten years have increased at a compound annual growth rate of 25%, so the company’s target to grow underlying EPS to 200p in five years is a claim to be taken seriously. With this in mind, the sharp drop in the shares in June prior to the interim results provided an excellent opportunity to pick up the stock at a discount. Notwithstanding the sharp recovery since then, VectorVest remains of the opinion that STAF continues to offer investors plenty of capital and dividend growth potential with a decent margin of safety. Buy.
Dr David Paul – August 22nd 2018
Readers can examine trading opportunities on this and a host of other similar stocks for a single payment of £5.95. This gives access to the VectorVest Risk Free 30-day trial, where members enjoy unlimited access to VectorVest UK & U.S., plus VectorVest University for on-demand strategies and training. Link here to view.
VectorVest Unisearch
On VectorVest a simple search using the Unisearch tool will quickly find shares that are undervalued with good fundamentals that have just issued a Buy recommendation. This will give the active trader a short list of many high probability trading opportunities each week. Traders now have the opportunity to spend five weeks discovering VectorVest’s unique simplicity, automation and independent guidance. Just £5.95 buys a 30-day trial to enable deep exploration, or how the system can assist in smarter trading in as little as 10 minutes a day. Powerful tools. Proven strategies. Unique Perspectives.
Link here for more info and to set up a trial.
European Financial Publishing Limited T/A VectorVest UK (VectorVest) is authorised and regulated by the Financial Conduct Authority under register number 543038. You should remember that the value of investments and the income derived therefrom may fall as well as rise and you may not get back the amount that you invest. Past performance is not a reliable guide to the future. This material is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. If investors are in any doubt of the suitability of an investment given their individual circumstances, they are recommended to contact an investment manager or independent financial adviser who may be able to provide tailored advice. Opinions expressed whether in general or both on the performance of individual securities and in a wider economic context represent the views of VectorVest at the time of preparation. They are subject to change and should not be interpreted as investment advice. VectorVest and connected companies, clients, directors, employees and other associates, may have a position in any security, or related financial instrument, issued by a company or organisation mentioned on this site. European Financial Publishing Limited is a company incorporated in Scotland under Company Number SC357322 with its registered address at Exchange Tower, 19 Canning Street, Edinburgh EH3 8EH. Email: support@VectorVest.com
Buy GBGI says VectorVest: The Insurance Group Continues to Trade at a Discount Despite Substantial Progress at the Half Year
Guernsey based GBGI (GBGI.L) is a leading integrated provider of international benefits insurance, operating globally across over 120 jurisdictions. Trading principally as “The Global Benefits Group” or “GBG”, the Group distributes and underwrites health, life and disability, and travel insurance, with a client base that spans multinational corporations, expatriates, local HNWIs, international schools, non-profit organisations and international students. GBGI is a fully integrated insurance group providing services from policy sales to claims administration and servicing and is committed to delivering high levels of customer service.
Examine this trading opportunity and a host of other similar stocks. A single payment of £5.95 gives access to the VectorVest Risk Free 30-day trial. More here
On August 10th 2018, GBGI published a trading update in advance of interim results for the six months ended 30 June 2018. GBGI reported continued growth in the business across its diversified product and regional footprint during H1 2018, recording year over year growth (adjusted for the Group’s exit from the Angolan market in 2017) in gross written premium as compared to the same period in CY 2017. GBGI said it anticipates that GWP and underlying net income (adjusted for certain one-off non-recurring expenses) for the year to 31 Dec 2018 will be broadly in line with initial expectations. CEO Bob Dubrish said GBGI had made a strong start to the third quarter…”and we are confident in our business model and that we are making good progress on our 2018 initiatives.”
Since May 2018, VectorVest members will have noted progress on the key RT (Relative Timing) and RV (Relative Value) metrics for GBGI. The RT metric, (a fast, smart indicator or a stock price trend) moved sharply higher in mid-July in line with the subsequent share price moves, and today logs the stock at 1.47 – excellent on a scale of 0.00 to 2.00. The RV metric, (an indicator of long-term price appreciation potential) again has moved sharply higher to register at 1.36, which is very good on a scale of 0.00 to 2.00. And at 18%, GBGI’s GRT (Earnings Growth Rate) metric is also rated as very good by VectorVest . At 104p, GBGI trades at a discount to the current VectorVest valuation of 135p.
The chart of GBGI.L is shown above over the past 10 months of trading. Earnings per share (EPS) is shown by the blue line study in the window below the price. EPS has grown by 30% over this period. Over the past three months the share has bottomed out and charted a double bottom at the 80p level. The share has broken upwards through a trendline defining the fall in the share price from January to May 2018. The share is on a Buy recommendation on VectorVest since the start of August 2018.
Summary: On the face of it, some investors may look past insurance group GBGI in favour of more exciting and dynamic growth companies with cutting edge technology. To do so would mean missing out on a highly investible proposition, offering cash generation, a solid management team and a decent 4.5% dividend yield. As the VectorVest stock selection system has shown time and time again, small companies such as GBGI can grow to become large companies that go on to form the backbone of many an investment portfolio. GBGI shares have delivered a sharp recovery since last week’s trading statement, and might just go onto become one of the stock market successes of 2018. Buy
Dr David Paul
August 15th 2018
Readers can examine trading opportunities on this and a host of other similar stocks for a single payment of £5.95. This gives access to the VectorVest Risk Free 30-day trial, where members enjoy unlimited access to VectorVest UK & U.S., plus VectorVest University for on-demand strategies and training. Link here to view.
VectorVest Unisearch
On VectorVest a simple search using the Unisearch tool will quickly find shares that are undervalued with good fundamentals that have just issued a Buy recommendation. This will give the active trader a short list of many high probability trading opportunities each week. Traders now have the opportunity to spend five weeks discovering VectorVest’s unique simplicity, automation and independent guidance. Just £5.95 buys a 30-day trial to enable deep exploration, or how the system can assist in smarter trading in as little as 10 minutes a day. Powerful tools. Proven strategies. Unique Perspectives.
Link here for more info and to set up a trial.
European Financial Publishing Limited T/A VectorVest UK (VectorVest) is authorised and regulated by the Financial Conduct Authority under register number 543038. You should remember that the value of investments and the income derived therefrom may fall as well as rise and you may not get back the amount that you invest. Past performance is not a reliable guide to the future. This material is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. If investors are in any doubt of the suitability of an investment given their individual circumstances, they are recommended to contact an investment manager or independent financial adviser who may be able to provide tailored advice. Opinions expressed whether in general or both on the performance of individual securities and in a wider economic context represent the views of VectorVest at the time of preparation. They are subject to change and should not be interpreted as investment advice. VectorVest and connected companies, clients, directors, employees and other associates, may have a position in any security, or related financial instrument, issued by a company or organisation mentioned on this site. European Financial Publishing Limited is a company incorporated in Scotland under Company Number SC357322 with its registered address at Exchange Tower, 19 Canning Street, Edinburgh EH3 8EH. Email: support@VectorVest.com
Buy Gordon Dadds Group Plc (GOR.L) says VectorVest. The company is listed at nearly 40% under valuation & has considerable growth potential.
Gordon Dadds Group Plc (GOR.L), formerly Work Group Plc, is an acquisitive legal and professional services business headquartered in London with a significant back office and technology platform based in Cardiff. The Group targets firms of all sizes and will merge the business into the Gordon Dadds brand or allow a firm to retain their identity and culture but benefit from the back-office technology platform used by Gordon Dadds, enabling the targeting of law firms seeking an alternative solution to the regulatory and investment requirements of the UK legal market. Gordon Dadds LLP has been operating in this way since 2013, successfully integrating firms into its cost efficient platform, and floated on AIM in 2017.
Examine this trading opportunity and a host of other similar stocks. A single payment of £5.95 gives access to the VectorVest Risk Free 30-day trial. More here
On June 28th 2018, GOR published maiden final results for the year ending March 31st 2018, and announced a 23.3% hike in adjusted PBT to £2.96m on revenues 25.3% higher at £31.24m. GOR recommended a maiden dividend of 4.0p on the back of gross assets up to £55m (2017: £24.9m) and an end of year cash balance of £8.9m. CEO Adrian Biles called it a year of “great progress”, “exceeding the expectations that we set for ourselves and for our shareholders.” He added; “We expect to achieve significant further growth during the year from additional acquisitions, together with organic growth arising principally from the increasing cross-referral of clients between the Group’s businesses and as the more specialised businesses take advantage of the Group’s full service capabilities. We continuously examine expansion opportunities and are engaged in discussions with firms in a number of other international jurisdictions. In the UK, we have a good pipeline of potential acquisitions with which we are at various stages of discussion or negotiation.”
The impressive progress by GOR in it’s first year as a listed company did not go unnoticed by VectorVest. A Relative Value flag, (RV – indicator of long-term price appreciation) alerted members in early June, as the level moved above 1, and continued to rise, logging GOR today at 1.57, excellent on a scale of 0.0 – 2.0. Other leading metrics include a GRT (Earnings Growth Rate) of 37%, which also rates as excellent on the VectorVest stock and portfolio management system. Even so, trading today at 177p, GOR is still a long way below the current VectorVest valuation of 281p.
The chart of GOR.L is shown above in my normal format. The share is in a Buy recommendation and has charted a first rising low. The VectorVest revaluation in June and July 2018 is invariably a leading indicator of a high momentum move.
Summary: For a company to complete a listing on AIM and deliver such an impressive set of maiden results is a relative rarity in this day and age. GOR not only achieved that, but it paid a dividend and has ample cash resources on the balance sheet to complete the acquisitions currently under negotiation. Even at this early stage in its life as a listed company, VectorVest sees considerable growth potential, particularly with the stock trading at nearly 40% under valuation. Buy.
Dr David Paul
August 8th 2018
Readers can examine trading opportunities on this and a host of other similar stocks for a single payment of £5.95. This gives access to the VectorVest Risk Free 30-day trial, where members enjoy unlimited access to VectorVest UK & U.S., plus VectorVest University for on-demand strategies and training. Link here to view.
VectorVest Unisearch
On VectorVest a simple search using the Unisearch tool will quickly find shares that are undervalued with good fundamentals that have just issued a Buy recommendation. This will give the active trader a short list of many high probability trading opportunities each week. Traders now have the opportunity to spend five weeks discovering VectorVest’s unique simplicity, automation and independent guidance. Just £5.95 buys a 30-day trial to enable deep exploration, or how the system can assist in smarter trading in as little as 10 minutes a day. Powerful tools. Proven strategies. Unique Perspectives.
Link here for more info and to set up a trial.
European Financial Publishing Limited T/A VectorVest UK (VectorVest) is authorised and regulated by the Financial Conduct Authority under register number 543038. You should remember that the value of investments and the income derived therefrom may fall as well as rise and you may not get back the amount that you invest. Past performance is not a reliable guide to the future. This material is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. If investors are in any doubt of the suitability of an investment given their individual circumstances, they are recommended to contact an investment manager or independent financial adviser who may be able to provide tailored advice. Opinions expressed whether in general or both on the performance of individual securities and in a wider economic context represent the views of VectorVest at the time of preparation. They are subject to change and should not be interpreted as investment advice. VectorVest and connected companies, clients, directors, employees and other associates, may have a position in any security, or related financial instrument, issued by a company or organisation mentioned on this site. European Financial Publishing Limited is a company incorporated in Scotland under Company Number SC357322 with its registered address at Exchange Tower, 19 Canning Street, Edinburgh EH3 8EH. Email: support@VectorVest.com
Great Portland Estates #GPOR better placed for growth than its London property market peer group, says VectorVest
FTSE 250 company Great Portland Estates (GPOR.L) is a property investment and development group owning £2.8bn of real estate in central London. The group proactively manages its portfolio, flexing activities in tune with London’s property cycle to deliver long-term out-performance. GPOR creates in-demand spaces that people want to be part of; helping occupiers, local communities and the city to thrive.
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On July 5th2018, GPOR published a trading update for the quarter to 30 June 2018, highlighting another quarter of positive operational activity with healthy leasing, ahead of ERV (Estimated Rental Value), and encouraging occupier interest across the group’s three newly committed development schemes which are already 11% pre-let. GPOR said it continued to attract occupiers, with £4.4m of lettings currently under offer at a 4.4% premium to March 2018 ERVs. CEO Toby Courtauld said that despite the ongoing economic and political uncertainty…”GPE is in great shape with enviable long-term potential: five years of net sales activity gives us unprecedented financial capacity even after returning more than £400m to shareholders; our investment portfolio is well let, off low average rents and we are capturing its reversionary potential; our committed development programme is progressing well; our exceptional income-producing development pipeline offers more than 1.3m sq ft of flexible future growth potential; and we have a first-class team ready to capitalise on our many opportunities.”
Toward the end of May 2018, London property group GPOR flagged up as an opportunity for VectorVest members in the form of a Relative Value (RV) flag. Since moving above 1, the RV, an indicator of long-term price appreciation potential, has continued to climb, and today logs GPOR at 1.51, excellent on a scale of 0.0 – 2.0. Added to this the company logs a GRT (Earnings Growth Rate) of 32%, which also rates as excellent on the VectorVest stock and portfolio management system. Trading today at 711p, GPOR still offers plenty of upside against a current VectorVest valuation of 1,024p.
A daily candlestick chart of GPOR.L is shown above. The green line above the price shows the revaluation of the company as earnings per share rose during June 2018. The revaluation is a strong leading indicator of a move in the share price. At present the share is charting a “flag” pattern and a break above the trendline defining the pattern plus a VectorVest Buy signal should precede a strong upward move.
Summary: Although there have been several recent indicators that some London property companies are feeling the pinch, (in relative terms of course), GPOR has consistently shown that by successfully managing risk, it can continue to deliver on its strategic priorities. The group is solely focussed on central London, a market that it knows inside out, which means it is better placed to evaluate changing conditions, adjust activities and unearth opportunities that others may miss. These fundamentals, coupled with a bullish charting configuration, ensures that GPOR is better placed for growth than its London property market peer group. VectorVest recommends that traders and investors should wait for the move to be confirmed by a VectorVest Buy signal
Dr David Paul
August 1st 2018
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European Financial Publishing Limited T/A VectorVest UK (VectorVest) is authorised and regulated by the Financial Conduct Authority under register number 543038. You should remember that the value of investments and the income derived therefrom may fall as well as rise and you may not get back the amount that you invest. Past performance is not a reliable guide to the future. This material is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. If investors are in any doubt of the suitability of an investment given their individual circumstances, they are recommended to contact an investment manager or independent financial adviser who may be able to provide tailored advice. Opinions expressed whether in general or both on the performance of individual securities and in a wider economic context represent the views of VectorVest at the time of preparation. They are subject to change and should not be interpreted as investment advice. VectorVest and connected companies, clients, directors, employees and other associates, may have a position in any security, or related financial instrument, issued by a company or organisation mentioned on this site. European Financial Publishing Limited is a company incorporated in Scotland under Company Number SC357322 with its registered address at Exchange Tower, 19 Canning Street, Edinburgh EH3 8EH. Email: support@VectorVest.com