On Tuesday 21 April, Surgical Innovations (SUN) released there 2010 final results. You may recall that I bought shares in Surgical Innovations for less than 2p (See blog entitled "Will (the) SUN keep on shining?"). After the results, I think it's fair to say that (the) SUN is still shining, and will be for some considerable time to come.
"We remain confident about the future growth prospects of the business for the remainder of 2011 and further into 2012 and 2013 as new products are launched towards the end of this year and the increasing traction with OEM customers gains momentum. "
A great forward looking statement, and I continue to hold all of my shares in this company.
The 2010 results were impressive with a massive hike in profits and an EPS slightly above expectations at 0.48p, which puts the shares, currently at 8.65p, on a historic p/e of 18. Given the growth prospects I consider the current valuation to be cheap, in fact their broker has set an intial price target of 12p.
What excites me most about Surgical Innovations is the accelerating growth coupled with a rapid improvement in margins (set to improve further in 2011). It also appears that they are increasingly gaining traction in the US with a marked increase in enquires.
It was a very bullish report and I shall sit tight. Given the consolidation in this sector there is also the outside chance of a bid. Either way, it's looking increasingly like a very long term hold for me.
Elsewhere, I see ASOS continues its heady climb, and now stands at £24.10. In my very first article I mentioned that I saw ASOS at 15p, and thought about a £5000 investment. I didn't buy any shares though. If I had then the current value of that £5000 investment would be £803,333. I'll just go and weep into my coffee for a few minutes! Just joking, and well done to those that bought early and held on.
I also see that BLINKX leapt another 17% yesterday, taking Burst Media with it (now 29p). Both these companies shares have multibagged in recent months. BRST perhaps being the most spectacular when BLINKX bid for the company. BRST sat on a SP of 5p before the bid, and has become a six bagger in a matter of weeks. Don't you just love small cap companies when they behave like those mentioned above.
In my last article I wrote about why I never short shares. Events over the last few weeks certainly haven't caused me to change my mind. As I said in that article, companies like ASOS can remain on a very high multiple for some considerable time. ASOS continues to defy gravity.
I have also been watching Avanti Communications where there appeared to be a struggle going on between the bulls and the bears. An impressive trading statement has handed control back to the bulls, and the share price has recently shot back up above £5. As mentioned before, there had been heavy Director buying in this company recently. It's worth remembering that these are the guys with insider knowledge, so when they put their money where their mouth is, it shouldn't be ignored lightly.
Finally, a quick mention of Kenmare Resources. KMR released their final results recently, and after a small blip in the share price, I notice that it is still hovering around 50p. For those that place great store on chart patterns, from my less than expert interpretation, it appears to remain in an upward trajectory. I still think a bid will arrive for KMR well above its current valuation. However, I might add that I am not a holder of this stock, and haven't read the report in any detail other than a cursory glance.
As ever, good luck to all investors, good health and may you all prosper!
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