Tag Archives: northern bear plc

Newcastle-based Northern Bear (NTBR.L) is a provider of specialist building services. The company was floated on AIM in December 2006, and provides services ranging from general building work, fire protection, roofing works, fork lift truck sales/hire and health and safety consultancy. There are currently 11 businesses in the group which together employ over 300 people.

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 16^th 2018, NTBR announced preliminary results for the year ended 31 March 2018. During the year the group completed the acquisition of H Peel & Sons (Holdings) Limited. Turnover from continuing operations rose to £53.6m (2017: £45.6m), with adjusted operating profit from continuing operations up to £3.1m (2017: £2.5m). Adjusted EPS rose to 12.5p from 11.3p, and the group increased the proposed final dividend to 3.0p per share (2017: 2.5p), plus a special dividend of 1.0p per share. Exec Chairman Steve Roberts said he was “delighted to be reporting on another great set of results. With a strong current order book, I am hopeful of another good year to come and would like to thank my fellow Directors and the management teams and staff at all of our companies for the efforts they put into making the Group such a success story. “ “We are pleased to be back on the acquisition trail and will continue to look at opportunities as and when they arise.”

VectorVest valuation metrics for NTBR had occasionally flickered into life in early 2018, but it was the run up to the June trading update that saw the RT (Relative Timing) metric, (a fast, smart, accurate indicator of a stock’s price trend), flag up an opportunity. Now in mid July, despite a bullish move higher in the share price, the NTBR RT metric still logs 1.27, which is rated as very good on a scale of 0.00 – 2.00. Other high scoring metrics include a GRT (Earnings Growth Rate) of 19%, which VectorVest also considers very good. The stock continues to add gains, but even at 82p, VectorVest believes the stock is still underperforming against a valuation of 108p.

A weekly chart of NTBR.L is shown above in my normal format. After a strongly trending upward move, in the first seven months of 2017, the share has traded sideways to down. Chartists refer to this type of pattern as a continuation pattern. Recently the share has broken the trendline defining the highs of the continuation pattern on rising volume. This is very bullish price action and bodes well for a push to at least the last high made on August 2017.

Summary: With over 85% of NTBR turnover coming from repeat business, its management can rightly be praised for a discerning approach to finding and bedding in quality acquisitions. Income investors will note that NTBR offers regular dividend payments, but with Exec Chairman Steve Roberts bullish over forward prospects for the group, VectorVest also sees an opportunity for near term capital gains. We rate the stock as buy, with a price target of 108p.

Dr David Paul

July 17th 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