Here's a rundown of what was recently added to my fantasy fund, and why.
Laura Ashley (LON:ALY) - 20.5p/£149m
With a yield of 7.3%, PER of 10.8, net cash of £38m (25% of mkt cap), z-score of 3.4 and P/FCF of 4.9 and 5% EPS growth in 2012, Laura Ashley (LON:ALY) is extremely underpriced.
Clearstream Technologies (LON:CTN) - 56.9p/£28.6m
Rapid growth company with immense upside potential. PER of 20, but about 10 on 2012F. Recent placing at about 48p, with directors buying in at the placing. Newsflow extremely positive.
Games Workshop (LON:GAW) - 437.5p/£136m
With a yield of 5.7%, z-score of 8.1, net cash of £11m (8% of mkt cap) and a P/FCF of 7.5, this looks extremely underpriced. There has been recent director purchases (about £55k combined from 3 directors) and positive newsflow. PER os 13.51, which doesn't make it appear to be a super-bargain. I have based my decision of P/FCF.
Howden Joinery (LON:HWDN) - 112p/£709m
PER of 9.4, and only a yield of 2.2%, z-score of 4.0. Perhaps not my best choice, but there was director buying at £160k, which is very positive. Shares were bought because they were available at a reasonable price, were financially strong, with a bet being made on management buys.
Intermediate Capital (LON:ICP) - 317p/£1.3bn
PER 10.2, YLD 5.5%, PBV 1.1, P/FCF 4.7. Director buying nearly £1m at the end of last month is hugely positive. Latest IMS is bullish.
Idox (LON:IDOX) - 19.7p/£67m
PER 10, YLD 2.7%. Double-digit growth expected 13.1. Directors purchased shares in March, and the company has made share buybacks since then, too. Recent AGM statement was bullish: "Overall revenues for the year to date and resultant profitability are significantly ahead of last year". Growth at reasonable price, with directors confident at buying.
Mears (LON:MER) - 242p/£206m
PER 8.8, yield 3.1%. z-score of 3.2, with net debt of only £13.7m compared with net profit of £14.8m. 9% growth expected next year. Management report record order book. EPS growth has never been negative during last decade. Another GARP stock.
Pace Micro Technology (LON:PIC) - 155p/£474
PER 6.0, low yield, 11% growth expected in 2012. z-score of 2 is not ideal. They have net debt of £200m against last year's net profit of £50m. Management has said it will repay debts within 4 years, and the statement looks feasible. PIC is in a growth market where there is competition. Another GARP stock at a ridiculously cheap price. Share price is very volatile. There is above-average risk in this company, but I don't consider it a gamble.
Disclaimer:
As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.
Laura Ashley Holdings plc is a United Kingdom-based company. The Company is engaged in designing, sourcing, distributing and selling of clothing, accessories and home furnishings. The Company’s operation is situated in the United Kingdom, Ireland and Continental Europe. During the fiscal year ended January 28, 2012, the Company’s property portfolio in the United Kingdom consists of 211 stores. The Company’s has five store types: 134 Mixed Product stores (selling all product categories), 54 Home stores (selling Home products only), 21 Home concession stores, one Gifts and Accessories store and one Clearance outlet. The Company’s subsidiaries include Laura Ashley Limited. Laura Ashley Investments Limited, Texplan Manufacturing Limited, Premier Home Logistics Limited, Bagleys Investments Limited, Laura Ashley Hotels Holdings Limited, Laura Ashley Hotel Elstree Limited, Laura Ashley Holdings B.V., Laura Ashley Manufacturing B.V. and Laura Ashley Hong Kong Limited. more »
Games Workshop Group PLC is a United Kingdom-based company engaged in the designs and manufactures miniature figures and games and distributes these through its own network of Hobby centres, independent retailers and direct through the Internet and mail order. The Company has manufacturing activities in the United Kingdom and the United States, and sells mainly in Western Europe, North America and Asia Pacific. The Company’s subsidiaries include Games Workshop Limited and Games Workshop Retail Inc., which are engaged in Manufacturer, distributor and retailer of games and miniatures; Games Workshop (Queen Street) Limited, EURL Games Workshop, Games Workshop SL, Games Workshop Oz Pty Limited, Games Workshop Deutschland GmbH, Games Workshop Limited and Games Workshop Italia SRL, which are engaged in Distributor and retailer of games and miniatures, and Games Workshop (Shanghai) Co. Limited, which is engaged in Manufacturing, sourcing and distribution of gaming materials. more »
