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Although bitcoin and crypto is top of the headlines for valuation hikes, one surprising sector of the market is shooting up, mainly unnoticed by investors.
That’s probably because this sector of the market does sound incredibly dull and dry – indeed if you could sum the sector up as a person – Keir Starmer.
I am talking lawyers!
Over the last 2-3 years lawyers firms have been listing on the LSE to the total apathy of investors more interested in how can we put this – more exciting shares.
But I’ve been investing for some time in lawyer groups as the shares looked unloved but ultra cheap. This is now paying off for me, as not noticed by others, shares in these companies are rocketing.
Take for example RBG Group (LSE:RBGP), which is basically the lawyer group Rosenblatt. Boring? No, your honour. I bought in at 58, the shares have more than doubled!
Partly this is due to rising profits and partly due to the market re-rating this sector.
And companies like RBG Group are using their cash to buy up legal services companies – RBG has just bought Memery Crystal for £30m.
As companies like RBG keep building their portfolios of companies, so their profits and share prices rise and there could be a lot more to come. For example at the rate of growth, the share price of RBG could easily head towards the 200p area.
Gateley (LSE:GTLY) is another newish listing that has been going well with its share price up from 120 to 179.
Keystone Law (LSE:KEYS) and Knights (LSE:KGH) are other groups going well – they are all under the “Professional services” sector.
There are rumours other similar lawyer groups will be coming to market this year. I am going to be keeping my eye open for these!
The great thing about investing in these businesses is they are much safer than the very high risk high flyers that can come down to earth with a bump.
Even better – at some point in the future as they get bigger they will probably start to buy up each other causing further lifts in share prices.
I rest my case!
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