Perform Share Discussion Threads

[jeffian] 01/8/2007 11:11

Arthurly,

I built my portfolio in 1998/9 and it is awash with quality companies acquired on low PER's and at high divi yields. The focus then was on 'TMT' and the 'unfashionable' stocks such as brewery/pubco's, housebuilders and retailers could all be acquired ludicrously cheaply.

My suggestion for the thread is OPD. They are a UK/European/US recruitment agency (formerly PSD) with excellent management and good track record over many years. They generate oodles of cash and have no debt. With today's setback you could buy them at 385p. EPS last year was 32p and projected EPS this year is 37.54p (2006 PER 12. Estimated 2007 PER 10.25). Michael Page, in their 'peer group', trades on over 27x even after today's fall! AGM statement a few weeks ago said trading ytd +22%.

Regards, Ian

[papalpower] 01/8/2007 11:10

Charts added.

[njp] 01/8/2007 04:50

Yes, nice thread PP. Afraid I'm too tied up at the moment to contribute but will when this changes. Already in several that you list and will check out the others.

[papalpower] 01/8/2007 03:59

Updated as above.

BIO could not be added - PER too high
MTT could not be added - gentle profit warnings issued of late.
BT.A could not be added - PER both outside the x12/x10
WKS could not be added - Current year EPS forecast is 0p

[arthurly] 31/7/2007 19:38

Odd how after 4 years of a bull market there are so many growth companies on low P/E's. Didn't really take much notice of the markets back in 1999 but I bet you couldn't find many companies like the ones mentioned on here. Maybe this bull market does still have another year or two to run.

[siwel100] 31/7/2007 19:10

Chinese stock PMHL. One of the largest Chinese listings, currently on a p/e 10 but also now pays a 5% Divi. Recovery in its iron ore importing business and fast growing recent aquisitions in Cement. Minimal financing debt which is covered anyway by cash in the bank.Currently has no real pi interest, all Institutional driven. Quarterly reporting.

[rivaldo] 31/7/2007 19:10

Nice idea for a thread PP, and good to see the caveat that the P/E is not a stand-alone measure. Good to come in from the sun and have a few alternatives to chew over, although I'm already in a number of the first few suggestions!

My first idea is Belgravium (BVM), share price is 15p, £15m m/cap.

- historic (2006) P/E is 11.5 on 1.3p EPS
- current (2007) P/E is 9.4 on 1.6p EPS forecast, 0.6p divi (4% divi yield)
- forward (2008) P/E is 8.3 on 1.8p EPS forecast, 0.7p divi

BVM generated £1.8m of cash from operating activities in 2006 and ended up with £2.6m of debt at the year end.

Most interestingly, BVM have just put up a positive trading update on their web site for H1'07 which confirms the bullish outlook at the last results and at the AGM, but which has not yet been reflected in a trading RNS:


Extract:
"Commenting on an excellent half year, Mark Hardy (Group Managing Director, Belgravium Technologies) stated : "What is really encouraging for me is that we're seeing a strong sales pipeline across all three operating divisions."

[cockneyrebel] 31/7/2007 17:49

How about APC for a low PE.

They will do earnings growth of 400% this year, forecast to do 33% growth in the coming year starting Sep 1. EPS this year should be 2.7p, for the year commencing Sep 1 it is under 10 - that's horny growth on a low PE imo. Recent acquisition has boosted margins no end and they recently bought back about 25% of the company shares too. Latest statement was very upbeat.


As for the lowest PE you'll probably find what about WKS? Forward PE is 1.8 (yes, there is a dot in there :-)). Directors buying like crazy, new business model like CFL that 10 bagged on similar changes there. 0.66p eps forecast for the current year, 2.07p eps forecast for next year - shares are 4p to buy!

CR

[tole] 31/7/2007 17:19

Good little thread PP....will pop a few suggestions here when I get the chance.

[rebess] 31/7/2007 16:19

Papal

How about BT with a P/E of 9.13

[tunturiflyer] 31/7/2007 15:34

PP
What about Bionostics (BIO.) Forecast PER is 9.68, so market cap is £13.4 million, but debt is £11.4 million. EBITDA is about £2.53 million, for 2006, and about £2.3 million predicted for 2007. Goodwill rather kills the balance sheet and P/l account.

It has two relatively stable biotech businesses, with no synergy between them, and is listed on LSE, (so ISA'ble). Used to be called Ferraris, that was going to acquire a whole host of Bio-tech companies. Strategy failed miserably, and they've sold most of the acquired companies, leaving a rather top-heavy organisation.

North Atlantic has, in the last couple of months acquired 26% of the company, and about 6 weeks ago, BIO announced they were in takeover talks. Sp went up to 30-34p ish, but has slipped back to around 26p.

Personally, I reckon North Atlantic are in too deep, and will have to make a full bid. There are only 5/6 major shareholders, and presumably North Atlantic have spoken to them all. - Perhaps these shareholders are playing by the insider trading rules, so are unable to buy more. The savings someone could make by getting rid of the directors, and the costs of the public listing are perhaps £1 million, in my view. (anyone got a better figure??) Chairman has options at 34p.

On quiet days, someone sells in lots of 1250 and 750, which tends to depress the share price There has been damm all news in the last few weeks, - except North Atlantic raised their stake from about 18% to 26%. BIO board on ADFVN is pretty quiet as well.

So I reckon that North Atlantic have been quietly causing the share price to fall. Eventually, IMHO, they have to do something, - full bid or trade sale. Folk on the BIO board reckon that breaking up the company, and selling the bits could make BIO worth 50p a share.

So, from my point of view, it would be good if PI's bid up the sp, otherwise North Atlantic will offer me a rather derisory price for the outstanding shares. - I also have committed enough to BIO.

[papalpower] 31/7/2007 14:48

Thanks Courant, I'll check it over.

[courant] 31/7/2007 14:46

pp,

Nice thread! How about Colliers CRE (COL)? I posted here:



and there is also an ADVFN thread about

Current forecasts are for EPSs of 15.9 and 18.5, giving PE of 10.1 and 8.6. I would strongly argue that the latest interims should give ample ammunition for an earnings upgrade, so these figures may well be improved, once the interims are digested. I might be bullish and pencil in current year PE of 8.5-9 (EPS 19p), forward PE of 6-7 (EPS 25p).

There are net current assets, cash-flow for the complete year is positive (although skewed towards the second half). Mcap £73m, debt of £9m. Seems like a sensible balance sheet. No bad news - quite the contrary, there are upbeat management statements.

Courant

[papalpower] 31/7/2007 14:38

BKIR

Current 1.62 Euro (x8.71)

Forward 1.80 Euro (x7.83)

14.1 Euro mid price

I'll add in on the next update Liars.

[papalpower] 31/7/2007 14:33

lonrho, thats whats needed, an independant forecast.

[lonrho] 31/7/2007 14:31

pp

Thank you for adding goc to your list,another one that is on a potential p/e of 5 or 6 is metal tech (mtt).I cannot find any forecasts to support it however and the shares seem to be in permanent descent.Just spoke to chief exec in israel,he seemed very happy with the trading side.Guess though without an independant forecast we can't include it.

[liarspoker] 31/7/2007 14:18

Bank of Ireland ( BKIR ) is another one.

p/e of 8 going forward - good quality ratios too imo.

[simon gordon] 31/7/2007 10:48

Hi PP,

SDIG:

30/11/07:
PBT - 7.5m
PAT - 4.9m
EPS - 4.6p
DPS - c.1p
P/E @ 57.5p = 12.5x
Cash balance - 12.3m


30/11/08:
PBT - 9m
PAT - 5.8m
EPS - 5.5p
DPS - c.2p
P/E @ 57.5p = 10.45x
Cash balance - 12.3m+

The above p/e's do not take into account cash on balance sheet

[steveofsw19] 31/7/2007 10:06

I'm sure everyone's heard of Ashtead. AHT.

Think they're on a P/E of about 9.

Not entirely sure what's holding it back at the moment. Maybe large exposure to uncertain US and some big acquisitions they've made recently.

Not a holder and not had chance to fully look into it yet. If anyone has anything useful to add regarding Ashtead, would be grateful as looks interesting.

Cheers.


S.

[modge] 31/7/2007 09:42

MODGE
PP I find your new thread very interesting;some good investment
opportunities there.

[mikehardman] 31/7/2007 09:16

PP - nice thread - thnx

[greek islander] 31/7/2007 08:48

Well done PP

I agree that BVM should also be up there and HAIK. Two VERY undervalued stocks on very low FORWARD pes and possibly reducing furhter when more up to date figures come through. HAIK is starting to move upwards and momentum could easily set in as it has a lot of RCG followers - for obvious reasons.

Agree with RCG of course. That would be top of MY list..