For the early risers, LPA Group has got out the blocks quite quickly this morning with an encouraging sounding trading update. I don't really know much about this company apart from the cursory glance I had this morning. It appears they had warned on profits at the half year but have since turned things around and will now be ahead of revised expectations. Medium term prospects look good. The shares don't look particularly cheap to me based on a p/e basis, but the TNAV looks ok. Cash at the half way stage was minimal. Might be one to research further? Shares are up around 20% as I type.
Aeorema which is one of my holdings that I mentioned yesterday has ticked up a little this morning. Goes ex-dividend on Thursday. Very healthy yield.
Avanti Communications which is also one of my investments, albeit speculative has also ticked up a little this morning. It's not been a great investment yet (share price wise), but I am encouraged by their progress and the shares have recently seen good upward momentum.
I shall update the diary as the day progresses with anything of note or that catches my eye.
Had a better look at LPA Group's half-yearly report. It looks plausible that the cash outflow at the half-way stage was a temporary blip. Given the trading statement this morning, and their confidence in maintaining the interim dividend, I suspect that they will return to cash flow positive by year end. Shares are up 30% now and it's certainly an interesting micro-cap. EPS for end of September was predicted to be 1.1p rising to 4.2p next year. Next year's p/e ratio stands at 20 after this mornings rise and the company pays a modest dividend. Could turn out to be a GARP stock, but the price would have to retreat from here to capture my interest.
No comments:
Post a Comment