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Buy Non-Standard Finance (NSF) says VectorVest. Despite solid progress, the growth opportunity is still in its infancy
UK-based Non-Standard Finance (NSF.L) specializes in the provision of non-standard consumer finance sector. NSF operates through four divisions: Central, Loans at Home, Everyday Loans and Trusttwo. Loans at Home provides home credit and serves approximately 98,000 customers, while Everyday Loans provides unsecured consumer loans on a face-to-face basis to approximately 37,000 customers from some 40 branches across the UK. Trusttwo provides guaranteed loans in non-standard finance sector, serving approximately 12 million UK adults who are not served by (or choose not to use) mainstream financial institutions.
FREE! For free VectorVest analysis on any stock, go to this link here
A solid set of FY results on March 3rd 2017, revealed normalized revenue, (including part contributions from acquisitions), of £81.1m (2015: £14.7m) and normalized operating profit of £13.8m (2015: loss of £0.5m). Strong loan book growth across all divisions since acquisitions resulted in a final dividend of 0.9p per share (2015: nil) making a total dividend for the year of 1.2p per share (2015: nil). NSF updated on trading again on May 9th 2017, and said trading performance since the results had been in line with management expectations. Loan book growth continued into Q2 at Everyday Loans, with twelve new branches planned for 2017, while Loans at Home saw steady improvement in the quality of its loan book.
NSF shares hit a year low of 50p in March 2017, at the time of the FY results, and at this point the numbers (outlined above) flagged up a series of indicators across VectorVest metrics. These included the VectorVest GRT (Earnings Growth Rate), which reflects one to three year forecasted earnings growth in percent per year, and currently shows forecasted GRT for NSF of 47.00%, which VectorVest considers to be excellent. Also the VST -Vector master indicator that ranks every stock in the VectorVest database, logs NSF at 1.40 – again excellent on a scale of 0.00 to 2.00. From a valuation standpoint, VectorVest logs a current rating of 116p per share, indicating NSF is significantly undervalued at its current 70.5p.
The chart of NSF is shown above. The green line study above the price reflects the VectorVest calculated value of the share while the blue line study shows earnings per share (EPS) growth over the past 9 months. The share charted a double bottom between January and April 2017. NSF.L then broke upwards through the high, between the lows, defining the double bottom formation. Since this break the share has retreated and tested the high of the double bottom which is bullish. Since this test the share has charted a symmetrical triangle continuation pattern and a break of this pattern (which looks imminent) should see the share move quickly to around 95p.
Summary: Up to March 2017, NSF had yet to show investors how well it had integrated acquisitions Loans at Home, Everyday Loans and Trusttwo. Normalized operating profits and revenues, and the dividend for the year showed the extent of the progress and the confidence of the management team in the business model, while the share price performance since the announcement clearly illustrates a consequential market re-rating in progress. Now, with the May trading statement providing evidence of further progress, VectorVest believes the growth opportunity at NSF is still in its infancy, and while not without an element of risk, rates the shares a BUY.
David Paul
June 13th 2017
Readers can examine trading opportunities on NSF 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
Buy into the almost unstoppable growth momentum at Morgan Sindall (MGNS) says VectorVest
London-based Morgan Sindall Plc, (MGNS.L) is engaged in construction and regeneration via five operating divisions: Fit Out, Construction, Infrastructure Services, Affordable Housing, and Urban Regeneration. The Fit Out division involves in the refurbishment and fit out of office accommodation. It also fits out and refurbishes hotel, retail, leisure, and education facilities, as well as supplies and installs commercial office furniture. The Construction division engages in construction activities ranging from small works, repair, and maintenance services to large scale complex projects in the airport, defense, commercial, education, industrial, healthcare, leisure, and retail sectors. This division also offers management services to the manufacturing, environmental, nuclear, transport, and public sectors. The Infrastructure Services division designs and delivers complex projects in the road, air, rail, water, and energy sectors; maintains utility networks in the water, gas, and electricity sectors; and offers tunneling services, as well as provides project, program, and integration management consultancy services. 
The Affordable Housing division develops, constructs, and refurbishes social and open market affordable housing in England, Scotland, and Wales. The Urban Regeneration division develops large-scale mixed use urban regeneration projects in the office, industrial, residential, leisure, and ancillary retail sectors.
FREE! For free VectorVest analysis on any stock, go to this link here
On May 4th 2017, MGNS issued a trading update with its AGM statement. The Company said trading for the financial year to date has been strong, with the positive momentum entering the year continuing throughout the period. Each division has performed as expected, with the overall Company result being driven by further margin and profit growth in Fit Out and the expected margin improvement in Construction & Infrastructure. The committed order book as at 31 March 2017 was up 5% to £3.83bn from the year-end position, while the regeneration & development pipeline was up 2% to £3.28bn. Also at 31 March, the Company had net cash of £115m, with an average daily net cash from the start of the year to 31 March of £154m, higher than previously expected due primarily to better working capital management in Construction & Infrastructure and Fit Out. As a result, the Company now expects that the average daily net cash for the year will be in excess of £50m and, consequently, the net interest charge for the year will be lower than was previously anticipated. Accordingly, MGNS is on track to deliver 2017 full year results slightly ahead of its previous expectations set at the 2016 full year results on 23 February 2017.
While MGNS has long been a favourite of the VectorVest team, the company continues to grow at pace, thanks to an exceptionally strong set of metrics. The VectorVest GRT (Earnings Growth Rate), which reflects a company’s one to three year forecasted earnings growth rate in percent per year, currently shows forecasted GRT for MGNS of 27.00%, which VectorVest considers to be excellent. In addition, the VST – the VST-Vector master indicator for ranking every stock in the VectorVest database, logs MGNS at 1.48, which is excellent on a scale of 0.00 to 2.00. From a valuation standpoint, VectorVest logs a current rating of 1,741p per share, indicating MGNS is significantly undervalued at its current 1,252p.
The chart of MGNS.L is shown above where the price is plotted in candlestick format. The green line study above the price is the VectorVest calculated valuation while the blue line study in the window below the price is earnings per share (EPS). The trend as defined by Charles Dow is upwards. This is shown by the series of rising bottoms charted by the price.
Of note is that the last swing low charted on the 22nd May is considerably higher than the swing high charted on the 26th April. Mr Dow defined this as a “strong trend” as the market failed to retreat to a point where the last resistance became support. This is very positive and the probabilities both technically and fundamentally favor a breakout of the 52 week high soon. The share has been on a VectorVest Buy recommendation since late December 2016.
Summary: There is a sense of an almost unstoppable growth momentum at MGNS, with clear visibility in earnings growth thanks to bursting forward order books. Added to this, the Company enjoys a continual strengthening in its daily net cash position, something most companies can only dream of. As such MGNS takes its rightful place on the VectorVest shortlist of top growth company picks.
David Paul
June 7th 2017
Readers can examine trading opportunities on MGNS 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
Reiterate Buy Wincanton (WIN) says VectorVest. Substantial upside on offer over the coming year
Founded in 1925, Chippenham-based Wincanton plc (WIN.L) is a provider of supply chain solutions. Through its subsidiaries, WIN provides contract logistics services principally in the UK, Ireland, and Mainland Europe. The company provides supply chain services, including warehousing, transport and distribution, international supply chain, intermodal, freight management, high tech logistics, construction, records management, and home delivery; and value enhancing services, such as 4PL, consulting, inventory management, product manipulation, procurement, fleet management, reverse logistics, recycling, and retail solutions. It offers road, rail, barge, sea, and air transport solutions, as well as provides enabling services, including change/project management, solution design, technology, project financing, property management, health and safety/compliance, and industrial relations management. WIN serves consumer products, retail, automotive, energy and petroleum, industrial, agri-food products, chemical, high tech, and food service customers.
FREE! For free VectorVest analysis on any stock, go to this link here
On May 17th 2017, WIN announced full year results, revealing a 17.6% increase in pre-tax profits to £41.5m, on revenues down 2.3% to £1.11bn, primarily due to the disposal of WRM and exit from loss making Pullman home shopping contracts. Closing net debt fell by £15.2m to £24.3m (2016: £39.5m) on the back of strong cash generation, and WIN paid a final dividend of 6.1p, (full year dividend of 9.1p). CEO Adrian Colman said Wincanton had delivered “a strong set of financial results, supported by a good stream of contract renewals and new business wins in the year. “ He added that the business is “well positioned to invest and continue to grow in attractive markets such as eCommerce and construction.”
I wrote an article on WIN in December 2016, pointing out how the VectorVest indicators had picked up on the start of a recovery in the stock as far back as Q2 2016. Trading then at 233p, WIN has since moved higher to push over 300p. Today, key VectorVest indicators including Earnings Growth Rate (GRT), (reflects a company’s one to three year forecasted earnings growth rate in percent per year), log a rating of 16%, which is very good. Additionally, the VST-Vector, a master indicator that combines a number of key VectorVest metrics rates WIN with a score a VST rating of 1.26, which is very good on a scale of 0.00 to 2.00. Last but by no means least, VectorVest raises the value of the stock from our December target of 356p to 422p.
The chart of WIN.L is shown above in candlestick format with the VectorVest calculated valuation shown as the green line study above the price. The share has recently broken out of a 5 wave triangular consolidation pattern after testing major trendline support. In the last few days WIN has broken above a 52 week high and is on a BUY recommendation on VectorVest. Technical analysts measure the height of the “flagpole” or upward move which precedes the triangle to calculate a target for the move. The technical target by this method (known as a measured move) is around 370.
Summary: Since we first identified WIN as a growth prospect, the company has cut out loss making operations, reduced debt and substantially improved earnings. With the CEO upbeat about the stream of contract renewals and new business wins, VectorVest metrics have re-rated the stock with a new target price of 421p, meaning WIN now offers substantial upside over the coming year. The view is also supported by the technical charting breakout. Buy
David Paul
May 24th 2017
Readers can examine trading opportunities on WIN 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
Plus 500 (PLUS) in fine shape – looks set to close the valuation gap in the coming months says VectorVest.
Plus500 Ltd, (PLUS.L), formerly Investsoft Ltd., is an Israel-based company, which develops and operates online trading platforms for retail customers to trade contracts for difference (CFDs) internationally over more than 1,700 different underlying global financial instruments, comprising equities, exchange traded funds (ETF), foreign exchange, indices and commodities. The Company offers its service to retail customers in more than 50 countries via platforms across multiple internet and mobile operating systems.
On Wednesday April 26th 2017, PLUS published a trading update for the three months ended 31st March 2017. The Company reported a significant improvement in profitability and quality of earnings, with an EBITDA margin of 59% coming in ahead of market expectations, on quarterly revenues of $77.5m. PLUS also reported strong operational KPIs, with record active customers during the period, up 6% on Q1 2016. The average user acquisition cost decreased by 31% vs. Q1 2016, and the board believes that this overall performance is consistent with current market expectations for the full year. CEO Asaf Elimelech said the Company has “started 2017 positively; we are confident we can continue to expand and enhance our competitive position whilst successfully incorporating regulatory changes with the minimum of disruption. Our strategy is supported by our strong financial position and cash generative business model, enabling us to deliver good shareholder returns despite short term regulatory uncertainty.”
PLUS started appearing across key VectorVest metrics in December 2016, when the shares traded around 320p. While the well-documented regulatory challenges with financial authorities around the globe led to a RS (Relative Safety) rating of just 0.75 – poor on a scale of 0.00 to 2.00, the VST (VST-Vector) indicator, (the master indicator for ranking every stock in the VectorVest database), rates PLUS at 1.32, 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 RV (Relative Value), RS (Relative Safety), and RT (Relative Timing). Stocks with the highest VST ratings have the best combinations of Value, Safety and Timing. VectorVest also currently records a current Value of 584p per share for PLUS, indicating that it is undervalued at its current 468p.
The chart of PLUS is shown above over a time span of 3 years and 5 months. As you can see the share has found support at around the 400p level. This horizontal level has been in place since April 2014. In this period the company has increased earnings per share (blue line study in the wondow below price) by 3X. The share is undervalued and is showing a high earnings potential (RV) over the next three years and is on a BUY recommendation as the share rises from a major support level. Technically the next target for the share would be the last old high at 800p which would be close to doubling the present price.
Summary: From an operational standpoint, VectorVest believes the strong numbers announced today show that PLUS has emerged from its not inconsiderable regulatory challenges in fine shape, both financially and in terms of its current operating performances. Up to the end of last year, the stock had been trading at levels in excess of the current VectorVest valuation of 584p, so we fully expect the valuation gap to close in the coming months. Aggressive traders who have experience in managing risk proactively should carefully consider this opportunity. buy.
Dr David Paul
April 26 2017
Readers can examine trading opportunities on ACA 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
Buy Triad Group (TRD) says VectorVest – this IT minnow can be considered an undervalued share
Founded in 1988 in Godalming, Surrey, Triad Group Plc, (TRD.L) provides information technology (IT) and business consultancy, application development, and systems integration services in the UK. Its IT consulting services include architecture definition, development of IT strategies, feasibility studies and technology selection, requirements analysis and specification, and project and program management. The company also assists its clients with services, such as business case development, business process improvement, and change management. Its application development and systems integration services portfolio consists of bespoke development; solution implementation; databases and business intelligence; integration; and support, maintenance, and hosting services. The company serves financial services, public sector and not for profit, telecom, media, technology, transportation, and travel industries.
On April 6th 2017, TRD issued a post year-end update ahead of final results due in June. TRD said the business continued to develop satisfactorily since the announcement of the interims on 25th Nov 2016 and it was confident that further progress would be reported in June. In the absence of unforeseen circumstances, profit before tax for the year ended 31st March 2017 is expected to be around £1.5m vs. £863,000 in the previous year. At the interim stage, TRD reported a 16.4% increase in interim revenues to £14.83m, while EBITDA grew by 136.7% to £0.71m.
VectorVest stock analysis had flagged the latent potential in TRD in mid 2016, as the stock appreciated from 37p following a strong set of full year results. Today, TRD remains on the table of winners, with the VST-Vector (the master indicator for ranking every stock in the VectorVest database) recording a rating of 1.28 for TRD, 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. Additionally the Growth to P/E Ratio (GPE) – comparing earnings growth rate to P/E ratio – featured TRD on account of an operative GPE ratio of 13.43, which highlights the stock as undervalued. In particular the earnings potential over a window of three years into the future (RV) is excellent. TRD has continued to deliver steady growth from 37p, but even at the current 81p, it continues to trade well below the VectorVest valuation of 147p.
The chart of TRD.L is shown above with the VectorVest valuations plotted as the green line study above the price. Earnings per share (EPS) is plotted in the window below the price as the blue study. After a strong advance in 2016 the share has traded in a “Flag” like, five wave, continuation pattern during 2017. This is a very bullish pattern. TRD.L broke out of the pattern a few days ago and is now on a BUY recomendation on VectorVest. The technical target from the flag formation is similar to the VectorVest valuation and this would amount to a potential 50% plus move from this level.
Summary: On many levels, IT minnow TRD can be considered an undervalued share. A £12.5m market cap for a company with annual turnover expected in excess of £30m and forecast profits of £1.5m flags up an imminent upward re-rating. This view is backed up by key VectorVest indicators and a valuation of 147p vs. the current 81p. Buy.
Dr David Paul
April 13 2017
Readers can examine trading opportunities on TRD 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
Buy Victoria (VCP) says VectorVest. Stock remains undervalued as acquisitions continue to fuel growth
Founded in 1895, Kidderminster based Victoria Plc (VCP.L) engages in the design, manufacture, export, and distribution of carpets and carpet yarns. It offers tufted carpets and Wilton woven products for residential and commercial markets. The company also supplies woven Wilton broadloom carpets and carpet tiles for the corporate / commercial sector, as well as Axminster carpets for hotels, casinos, and cruise liners. In addition, it is involved in importing and distributing wool and natural floor coverings. VCP operates in the UK, Australia, Ireland, and Canada.
On Nov 22 2016, VCP reported interim results. Group revenues grew by 45% from £105.6m to £153.4m, while underlying profit before tax substantially increased from £6.4m to £12.3m. The group said the acquisition of Ezi Floor on 30 Sept 2016 for an initial cash consideration of £6.5m and deferred consideration of £6.5m, plus contingent cash consideration of up to a further £6.5m was wholly dependent on improved EBITDA over the next four years. On Dec 14, VCP agreed to acquire the business and assets of Dunlop Flooring, the Australian underlay and hard wood flooring manufacturer and distributor, for a cash consideration of A$34m. On Feb 13 2017, VCP announces the acquisition of Avalon BV and GrassInc. BV, the Netherlands-based designers, producers, and distributers of artificial grass for a total initial cash consideration of €11.2m and deferred consideration of €5.1m to be funded from cash and the Group’s existing bank facilities. Additional contingent cash consideration is payable dependent on certain financial targets being met over the next four years. At the interim results stage Exec Chairman Geoff Wilding, said: “With no shortage of acquisition opportunities in the UK and Europe, the Board is confident it can continue to grow Victoria and create more wealth for shareholders.” Full year results are due in April.
The rate of earnings growth and general potential at VCP was picked up by VectorVest in Sept 2016. The GRT (Earnings Growth Rate), which reflects a company’s one to three year forecasted earnings growth rate in percent per year, flagged a rate of 32% for VCP, which VectorVest considers to be excellent. Although the RT (Relative Safety) metric only rates VCP as fair, the RV (Relative Value) metrics marks out VCP at 1.52, which is excellent on a scale of 0.00 to 2.00. RV is an indicator of long-term price appreciation potential and is far superior to a simple comparison of Price and Value because it is computed from an analysis of projected price appreciation three years out, AAA Corporate Bond Rates, and risk. Finally Value, the measure of a stock’s current worth, rates VCP at with a current Value of 689p, which means at the current 447.50p per share, the stock is undervalued.
The VCP chart is shown above with the green line study (the VectorVest valuation) above the price showing that the share is much undervalued by the market. Earnings per share (EPS) is shown via the blue line study in the window below the price. This shows EPS rising strongly over the two year period of the chart.
The share has charted a double bottom recently which in its self is positive. The lows of this double bottom are significantly higher than the last swing highs made in January 2017. This phenomenia where the market refuses to fall back to the last swing high was first noted by Charles Dow, some 120 years ago and named by Dow as a marker of a strong trend. Technically this indicates that VCP.L is heading much higher.
Summary: As stated in the interim results last year VCP is clearly making the most of the raft of acquisition opportunities to expand its offering. Given the rate of revenue and profits growth, there is every reason to expect a bumper full year results statement in the coming weeks, and backed by a strong technical picture. The probabilities favour a continuation of this strong trend.
Dr David Paul
April 4 2017
Readers can examine trading opportunities on VCP 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
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.
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
Buy Taptica (TAP) – Not without risk, but in serious growth mode, says VectorVest
Taptica International (TAP.L) offers data-focused marketing solutions that drive execution and brand insight in mobile, leveraging video, native, and display to reach the users for every application, service, and brand. The technology is based on artificial intelligence and machine learning at big data scale. The company works with more than 450 advertisers, including Amazon, Disney, Facebook, Twitter, OpenTable, Expedia, and Zynga, and more than 50,000 supply and publishing partners worldwide.
On March 20 2017, TAP published FY results for the twelve months ended Dec 31 2016. Adjusted EBITDA rocketed to $25.7m from $7.4m, on revenues 66% higher at $125.9m. Cash and bank deposits stood at $21.5m, up from $9.5m on June 30 2016, and after making three cash payments of $16.5m for the acquisition of AreaOne, a share buyback and dividend payment. The final dividend for 2016 of $0.0432 per share resulted in a total dividend for the year of $0.1011 ($0.00784 in 2015). CEO Hagai Tal said: “Taptica entered 2017 at a run rate significantly higher than at the equivalent period last year as it continues to benefit from the investment being made into mobile advertising by corporates and advertising agencies . . . As a result, the Board remains confident of delivering strong year-on-year revenue growth in the year ahead.”
While the latent growth potential in the TAP model is clear to see, VectorVest had initially identified the potential in the run up to the trading update in May 2016. TAP was flagged early across the GRT (Earnings Growth Rate) metric, which reflects a company’s one to three year forecasted earnings growth rate in percent per year. TAP currently has an excellent forecasted GRT of 24%. The VST (VST-Vector) is the master indicator for ranking every stock in the VectorVest database. Here TAP has a VST rating of 1.29, which is very good on a scale of 0.00 to 2.00. TAP.L has a low Relative Safety (RS) metric of 0.92 on a scale between 0 and 2. The opportunity should be considered by seasoned traders well versed in position sizing and risk management.
The chart of TAP.L is shown above with the price in candlestick format. The green line study is the VectorVest valuation which is significantly above the traded price on the 20th March 2017. Earnings per share (EPS) and volume traded are shown in separate windows below the price plot. The share has been on a BUY recommendation on VectorVest from the 9th March 2017. Since the Buy recommendation the price has risen strongly on high volume and then moved sideways on very low volume. Charles Dow wrote that the characteristic of a bull market was that prices advanced on rising volumes and pulled back on falling volumes. At the moment the price is breaking to new highs on high volume which is a strongly bullish sign.
Summary: TAP has already delivered spectacular growth for its early stage shareholders, and while it would not be unreasonable to expect a period of consolidation, it is clear the company is in serious growth mode, as indicated by the CEO in the results statement on March 20. VectorVest currently values TAP at 436.90p per share, and while not without risk, the stock continues to offer considerable upside potential from the current 295.00p per share.
David Paul
March 21st 2017
Readers can examine trading opportunities on TAP 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.