JD Sport[JD]…A Good Company To Buy?

JD Sport is a well known British company, mainly focusing in Sports clothing. They own many brands such as millets and Blacks as well as size? and Sprinter, a popular brand in Spain. Recently JD Sport have had large amounts of success according to their 2016 annual report. Total revenue went up 20% form 1,522.3 million(2015) to £1,821.7(2016). In addition to this there has been a 42.6% increase in basic earnings per share. JD Sport has kept a good, strong cash flow a long with encouraging profit. It should be noted though, that the amount of tax the company has had to pay has risen. In addition to this, the retail sector has shown itself to be somewhat insecure.

The record result of growth does offset this amount of tax but it still should be kept in mind.

Recently the Euros commenced which is directly helping JD Sport’s prices. International  competitions are quite frequent and can boost certain company’s revenue especially sport companies. A long with these positive aspects we still have to remember that growth might not as big next year due to the fact that there aren’t competitions as big as the World cup or the Euros.

JD Sport is a strong company with a market cap of 2.41 billion (even larger than Sport Direct’s) and impressive growth. These are very positive aspects and lead towards a buy but still there are some points which most likely need in depth research like the tax growth and the fact that retail is not always necessarily stable

17/06/2016        share price(at time of writing):1,239.00 (LON)

IPPlus[IPP] Rises 8.47% As Their Interim Financial Results Are Released

IPPlus, a customer contact specialist, released their Interim Financial Results (ending 31 December 2015) and caused their share price to rise 8.47%.  They reported a pre-tax gain of £116,993 as apposed to a loss of £116,917 last year. This is because of a recent, major contract with a client in a division of IPPlus – Ansaback. As a result, Revenue has increased to £4,055,716 from last year’s, £3,374,240. These are promising results as IPPlus jumps back into a gain in pre-tax profits.

Companies gaining contracts is typically a good thing. Last year a contract finished which is what caused the losses. With new client and contract, the prospects of the company could improve.

Although, some of you may have noticed that the companies market capitalisation is 5.05m. This is certainly not very high, and can this can make a company illiquid. Smaller companies also don’t have as much of a foothold in the market although, IPPlus says, ‘Our client portfolio is extremely prestigious’. This of course could be slightly biased since IPPlus keeps their clients anonymous.

IPPlus is a fairly small buisness and they could move more drastically. This company, though, has released a good report and the contract is paying off, as we can see. There is some risk investing in companies like these, but it might worth it.

 

Written On 22/02/2016                    Closing Price – £0.16

Fastforward Innovations Shares Rise 12.8% As They Increase Their Share In Yooya Media

‘We invest in companies developing emerging technologies that will shape the future.’ – Fastforward Innovations

Fastforward Innovations, a company that invests in new technology companies, increased their share in Yooya Media to 15%. Yooya Media ‘connects and unify the three linchpins of the online video market in China: rights owners, distribution platforms, and brand constituents.’

Fastforward Innovations, a company that focuses in investing in small, companies with the potential to become the face of tomorrow, believes that Yooya has the potential to go further. It is entering a new, but potentially growing market in a heavily progressing economy where online videos are very popular. This can typically lead to share price gains although as times have shown, the value of the technology might be overstated.

This acquisition has caused their share price to rise 12.8%. This is an impressive sight but as it is known, companies that invest in smaller, more riskier businesses can present a challenge in the stock market.

If your willing to invest in this company a lot of research is needed and you need to be careful.

CLOSING PRICE – 17.62

Quartix Holdings Plc…The Time To Buy?

Quartix Holdings Plc is one of Europe’s leading, real-time, vehicle trackers has announced it will be publish their annual report for the year ending December 31st 2015 on February 29. Aside from the fact that this date occurs once every four years, is this the time to buy?

Quartix themselves say that they are expecting financial results to exceed expectation. If this eventually turns out to be true then that could mean a healthy rise in stock value. So far the most recent interim report has been promising with revenue and net profit rising significantly. This is a good indicator for Quartix successfully achieving and hopefully exceeding their goals. In addition to this, we can see that their net debt is a lot lower than the pre-tax profit which has always been a good sign for financial stability.

Something that may worry investors is the fact that this company seems quite expensive. Firstly the P/E ratio is 31.75(very high) and if you take a look at the full year pre-tax profit(2014) of £5.0 million its fits 24 times into the market cap of (approx) £120 million. This is also very expensive.

If you are willing to go out on a slight whim, this company may be a good buy but if it seems far too expensive then maybe Quartix isn’t the best place for your money.

Starcom PLC Jumps 50% After Major Contract Has Been Made

“This is our largest contract to date and we are delighted to be working with Pinnacle Systems on this major supply and support agreement.” – Avi Hartmann, CEO

Starcom’s shares have jumped 50% today due to a contract worth $5.5 million with road safety industry leader, Pinnacle. The deal is to supply their Helios units to the company. This is currently their biggest contract ever. In addition to this the contract has been made with a market leader in East and Central Africa…Pinnacle.

Pinnacle is based in Nairobi, Kenya where truck speed monitoring systems are legally required – this is a good sign for continuous growth.

Although, Starcom have been on a continuous decline since 2014 but could this contract make the company worthwile or has the time for investment already passed?

Greene King Plc Jumps 14% After Interim Results

Greene King Plc, a leading brewery and pub owner, has seen it’s shares rise 13% today. The catalyst of the sudden spark of shareholder movement was from their interim results. The company has seen a profit – before tax rise of around 18% in the 24 weeks ending October 18th along with a revenue increase of 50%.

On the income aspect the company has increased their dividend by 6.3%. This leaves us with a moderate 3.09%.

These successful figures could be traced back to Greene King’s acquisition of the Spirit Pub company. Greene Brewery has built its way up to the top with many successful acquisitions-evidently, this being one of them.

In addition to this delightful company news, a rather uncanny event has had it’s effect on Greene’s shares. President Xi Jinping along with Prime minister David Cameron recently experienced the pubs of England and enjoyed fish, chips and Greene King’s very own beer: Greene King IPA. This has led the demand for IPA in China to go up 16 – fold or 1600%.

These factors indicate towards a buy and more successful acquisitions could lead to a continuous rising profit. Although we are aware that more people are preferring the shelter of there own home to drink beer, Greene King has implemented techniques so that it’s pubs still remain a viable option to enjoy the beverage. These strategies include making food more available as snacks and proper meals as well as making their pubs a good place to watch sport.

Marriott To Acquire Starwood

Marriott,  a large company that specializes in the hospitality industry is set to buy Starwood in a deal worth $12.2bn. This will make Mariott the largest hospitality company there is in the industry. The acquisition, the companies say, is set to go through mid-next year. Marriott intend to buy Starwood shares for $72.08 per share.

Japan Residential Investment Company(JRIC) Surges 32% As Offer Is Agreed On

We are pleased to recommend the offer – it represents an attractive price and is at a level that we believe should be put to our shareholders.” – Raymond Apsey, Non – executive Chairman

On November 13th Japan Residential company surged 32% because of a bid made by Blackwater(BLK). They agreed to buy JRIC for £152.6 million with a share premium of 32% (72 pence). JRIC has also stated that on Friday 13th they received an offer from a potential bidder at the same premium. Although, the talks are in early stages as the bidder is currently carrying out due diligence.

 

Is Moss Bros(MOSB) worth your money?

“The half year under review was another period of strong progress for the Company.” – Brian Brick, CEO

Since 2009 Moss Bros, a specialists in menswear, has seen it’s shares rise up consistently and at 2014 they shot up to 124p. Moss Bros shares are now tailing around the 100p mark. If we mix this with operating profit up 44% and revenue up 9.8%; like – for – like retail and hire up 9.7% and 9.8% respectively, Moss Bros seem like a good investment…

Since 2008, Brian Brick became the new CEO started a very strong bullish trend continuing up to 124p. Although shares have dropped to around 100p the latest six month financial statement(ending August 1st) has shown good indications to steady improvement.

Plans have been made to take the brand overseas, meaning more room for potential growth. Along with this growth margin has improved by a “a more coordinated and targeted promotional programme.”. This a long with multiple store refits to fit with their customers and high e – commerce growth could lead to a lot of new potential.

In addition to this, for all you income lovers, Moss Bros offers a juicy  dividend of 5.50%. A surplus cash balance means that these dividends should be well accounted for.

For those eagle – eyed investors you might notice that the Financial Director is stepping down on May 20th 2016. This is to ensure a smooth transition, which should go to plan but be wary that a new director might mean a few new changes. This might result in your potential (or current) shares going slightly down(or they even might benefit).

Wedding -wear will not do as well in the second – half Moss Bros says due to the fact that it is not wedding season. Although we will see a rise in evening – wear so you shouldn’t be worried too much about this aspect.

Lastly, in April 2016 there will be the introduction of the Living Wage. Investors must be cautious as it could indicate that more cash has to be diverted elsewhere. According to the financial statement, the Living Wage should not hurt Moss Bros in the “short to medium term”. Nevertheless we have seen that companies like Whitbread(WTB) have warned that they will be affected so be cautious and wary.

Summary:

  • like – for – like sales up 9.7%
  • like – for like retail sales up 9.7%(including 55% rise on e-commerce
  • pre-tax and operating profit up 44% to £2.8
  • total sales up 10.0%(to £61.3)

These are simply some highlights but I strongly recommend that you check the report at:

http://www.mossbros.co.uk/investors