Home » Posts tagged 'communisis'

Tag Archives: communisis

Buy Communisis (CMS) says VectorVest – Stock is in a strong upward trend, looks set to continue towards 2014 highs

UK based marketing services group Communisis (CMS.L) helps in the communication process between brands and their customers by creating and delivering content across multiple customer touch-points in digital, broadcast and print channels. It operates in three segments: Design, Produce and Deploy. The Design segment offers marketing expertise, communications consultancy and creative services specializing in customer relationship marketing, shopper marketing, brand activation and financial services content. The Produce segment includes its outbound transactional services for billing and statements for financial services and utilities. The Produce segment includes its capabilities, such as document composition, workflow management, and digital output, such as e-mail. The Deploy segment offers brand deployment support with service lines, such as campaign management, studio services, supplier sourcing, governance, in-store activation, and warehousing and logistics.

On March 9th 2017, CMS reported a solid set of results for the year ending 31st Dec 2016. Adjusted profit before tax rose 15% to £16.7m on revenues 2% higher at £361.9m. Adjusted earnings per share rose 17% to 6.07p, and with net debt down £9m to £30m (2015 £39m), CMS raised the full year dividend by 10% to 2.42p. CEO Andy Blundell said CMS had succeeded in strengthening its position as the leader in UK transactional communications and further extended its Brand Deployment services in overseas territories. “These twin themes will continue to underpin our growth strategy going forward.”

The solid growth in earnings, profitability and cash generation flagged across a number of VectorVest metrics back in August 2016. Today, CMS continues to score top marks, with the VST-Vector (the master indicator for ranking every stock in the VectorVest database) recording a rating of 1.30 for CMS.L, which is very good on a scale of 0.00 to 2.00. VST is computed from the square root of a weighted sum of the squares of Relative Value, Relative Safety, and Relative Timing. In addition, for longer term investors, the YSG-Vector, (an indicator which combines Dividend Safety, Dividend Yield and Dividend Growth into a single value), records a rating of 1.22 for CMS, which is good. Stocks with the highest YSG values have the best combinations of Dividend Yield, Safety and Growth. These are the stocks to buy for above average current income and long-term growth. It is worth noting that the Relative Safety of CMS.L is low and thus the opportunity should only be considered by those well versed in position sizing and proactive risk management.

cms

The chart of CMS.L is shown above with the price charted in weekly candlestick format. The share is undervalued as calculated by VectorVest and the valuation is plotted as the green line study above the price. The down trend in the share as defined by the falling trendline shown above was broken at the start of 2017. From a technical perpective the trendline was broken and then the share succesfully tested the trendline in a process that technically orientated traders call “resistance beconing support”. The share has been on a Buy recommendation by VectorVest since the middle of December 2016.

Summary: The raft of positive news in the full year results effectively echoed the CEO’s statement in the interims last August, when at 36p the stock first came to the attention of VectorVest scanners. CMS has nearly doubled in value since that time, but with the ongoing pace of debt reduction and the prospect of continuing dividend growth, VectorVest fully expects CMS to continue delivering. The share is in the throes of a strong upward trend and looks highly likely to continue its move towards the high of 2014 which is similar to the present VectorVest valuation of 71.5p.

David Paul

March 29th 2017

Readers can examine trading opportunities on CMS and a host of other similar stocks for a single payment of £5.95. This gives access to the VectorVest Risk Free 5-week trial, where members enjoy unlimited access to VectorVest UK & U.S., plus VectorVest University for on-demand strategies and training. Link here to view.

FREE! For free VectorVest analysis on any stock, go to this link here

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 5 week 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
I would like to receive Brand Communications updates and news...
Free Stock Updates & News
I agree to have my personal information transfered to MailChimp ( more information )
Join over 3.000 visitors who are receiving our newsletter and learn how to optimize your blog for search engines, find free traffic, and monetize your website.
We hate spam. Your email address will not be sold or shared with anyone else.