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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.
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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.
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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