Up Global Sourcing Share Discussion Threads

[ianio5691] 04/10/2018 09:37

Couple of AT trades just taken out the last of the 37p stock.

Going up!

[ianio5691] 04/10/2018 09:29

It was hotly tipped by one of the Penny share guides last year, as well as Robbie the Naked Trader.

Think they over egged the books a little on IPO to get a high valuation, but that has come back to bite them on the arriss.

Strong sales on Amazon and their venture into Germany is going extremely well...

This should re-rate quite strongly.

[edmonda] 04/10/2018 09:29

Following Equity Development's initiation of coverage, analyst Chris Wickham, discusses the business opportunities, the strength of its core brands, and why international expansion provides the necessary diversity to its growth platform.

Read the full research note here -

Watch the Interview here -

[ianio5691] 04/10/2018 09:07

UP Global Sourcing Holdings plc (LON:UPGS) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of UPGS, it is a financially-sound company with a a strong track record of performance, trading at a great value. Below is a brief commentary on these key aspects.

Undervalued with excellent balance sheet

UPGS delivered a satisfying double-digit returns of 50.3% in the most recent year Unsurprisingly, UPGS surpassed the Retail Distributors industry return of 16.6%, which gives us more confidence of the company’s capacity to drive earnings going forward. UPGS is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. UPGS seems to have put its debt to good use, generating operating cash levels of 1.34x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.



UPGS’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of UPGS’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the retail distributors industry, UPGS is also trading below its peers, relative to earnings generated. This bolsters the proposition that UPGS’s price is currently discounted.

[ianio5691] 04/10/2018 09:01

UP Global Sourcing
Holdings PLC

Ultimately, there is Growth

Ultimate Products Global Sourcing Holdings PLC (UPGS) looks well placed to
return to growth. UPGS enjoys a combination of well-known household brands,
a proprietary approach to managing those brands, and significant growth
headroom within its distribution channels. Moreover, after a challenging H1,
sales trends improved in FY2018 H2. With a strong management team and,
arguably, an attractive valuation, the shares should attract investors’ attention.
UPGS is a consumer goods company with a robust portfolio of household durable goods
brands. Its premier offering includes Beldray, Salter, Russell Hobbs, Intempo and
Progress. Uniquely, the company offers these brands at attractive prices and in
categories which expand the overall footprint of the brand names.
In our view, UPGS’s brand management approach positions these key names for growth
but in a way which will generate shareholder value. UPGS’s portfolio should experience
what we refer to as mature market volume growth, which is arguably the strongest driver
of value creation in the UK consumer goods sector. Overall management quality tends
to be confirmed by clear vision and smart strategic positioning.
UPGS’s FY2018 disappointed relative to initial expectations, notably in the first half. But
its share price may have been unfairly hurt by general investor nervousness about UK
consumer stocks. With scope to recover sales in FY2019 and grow in FY2020, the shares
arguably command a valuation significantly in excess of where they currently trade.
Our forecasts for FY2018 – partly covered in the company’s 10th September 2018 trading
update – and FY2019 are summarised in the valuation box below. In our view, both the
P/E ratio and dividend yield look attractive in the context of the nature of the company’s
business and potential for near term recovery.
Given the UK retail climate at the moment, it is challenging to set a precise value on the
shares. But to give some guidance we look at our revenue estimate for FY2019 and,
even applying a conservative 1x EV/sales multiple, come out with a share price of £1 per
share. Furthermore, we are encouraged by the resilience that UPGS has shown in these
challenging times when others have floundered. We highlight the strength of their
balance sheet, as well as their ability to adapt quickly to external challenges - e.g. by
focusing on international and online opportunities.

[ianio5691] 04/10/2018 08:54

The buying continues this morning.
Very hard to get anything of any quantity.
Late reported trade for £36k last night.

[kirk 6] 03/10/2018 19:06

Can see these above £1 shortly

[topvest] 03/10/2018 18:40

This will fly when the growth investors that sold return. Fundamentally, it’s a growth company going through a sticky patch.

[turbocharge] 03/10/2018 16:45

Nice large buy reported after hours

[ianio5691] 03/10/2018 16:01

Strong buying...
Some decent trades going through now.

Are we back on the radar?

[ianio5691] 03/10/2018 15:49

Looking perky here at last. No way it should be at this price... look at the profit they make.

[kirk 6] 03/10/2018 15:13

Nice buy well above offer. Should never be down at this valuation in the first place

[kirk 6] 03/10/2018 14:37

Agreed don't know any stocks trading this cheap with growth prospects next year

[cascudi] 03/10/2018 14:16

So undervalued imo

[cascudi] 03/10/2018 14:15

Moving in the right direction

[kirk 6] 03/10/2018 09:48

Should be trading over )1

[cheshire man] 03/10/2018 09:24

Certainly an excellent yield here for holders

[turbocharge] 03/10/2018 08:55

EQUITY DEVELOPMENT INITIATES RESEARCH

Ultimate Products Global Sourcing Holdings PLC (UPGS) looks well placed to return to growth. UPGS enjoys a combination of well-known household brands, a proprietary approach to managing those brands, and significant growth headroom within its distribution channels. Moreover, after a challenging H1, sales trends improved in FY2018 H2. With a strong management team and, arguably, an attractive valuation, the shares should attract investors’ attention.

[kirk 6] 02/10/2018 19:02

Ultimate Products Global Sourcing Holdings PLC (UPGS) looks well placed to return to growth. UPGS enjoys a combination of well-known household brands, a proprietary approach to managing those brands, and significant growth headroom within its distribution channels. Moreover, after a challenging H1, sales trends improved in FY2018 H2. With a strong management team and, arguably, an attractive

[kirk 6] 02/10/2018 18:24

Very nice these are massively undervalued

[lammylover] 02/10/2018 16:27

Good article by Equity Development. Next results out 6th November. Target 100p. Rich

[edmonda] 02/10/2018 15:51

We initiate with a £1 share fair value. Did we mention the 8% yield that is 2x covered? Read the detail here:

[kirk 6] 01/10/2018 07:53

Aldi plans to open 130 new stores over next few years

[topvest] 28/9/2018 18:20

Bouncing along the bottom. Just need a hint of positive news and we will get a golden cross.