Monday, June 25, 2012

Monday morning review

Good morning. The FTSE 100 Futures are indicating a slightly negative open, down 8 points to 5499.

Having a quick scan of the RNSs, not a lot catches my eye (I don't cover resource stocks incidentally, as it's a specialist sector where I don't have any expertise).

Delcam (DLC) has put out a positive trading update, with revenues up 14% on prior year, and results likely to be ahead of forecasts. That's a fairly unusual situation right now, so noteworthy. The shares look up with events though, as price is 17x multiple of existing forecasts, and a divi yield of only 1%, so I can't get excited about that.

Construction company, Kier Group (KIE) has put out an in-line trading update, mentioning public sector PFI projects. Not one for me, given the wafer thin profit margins. Although shares look reasonable value on a forecast PER of 9, and a 5% dividend yield.

Very impressive-looking results from Cohort(CHRT) - Adjusted EPS up 62% to 15.5p, so that puts the shares on a PER of less than 6. But given that it's a defence supplier primarily in the UK, and impending Govt cuts, perhaps that's why it's cheap? Not a company I've looked at before, but with a strong Balance Sheet too, this one looks worthy of further research.

A rather waffly update from Panmure Gordon (PMR), thin on detail, but seems to show their heavily loss-making 4-year period may now be behind them. Always surprising how small these "big name" City firms are. Only £14m mkt cap.

Glanced quickly at Paragon Entertainment (PEL), a £13m mkt cap company engaged in building attractions. Unusually, its turnover is zero. Why on earth is something this early-stage Listed at all? £2.9m operating loss for calendar year 2011. Hmmmm.

Vitesse Media (VIS) - a £1m mkt cap (yes, really! Again, why is it sensible to have a Listing?) reports a £500k loss and a very weak looking Balance Sheet. Bargepole.

That's all for the moment, just thought I'd try to bash out a quick pre-opening report each day this week, so do check back every day!

Regards, Paul.


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