Spice – 37.25p

26 April 2010 – disposal

This morning’s confirmation that the group has sold its telecoms business for gross consideration of £32.8m is likely to be well-received by the market, as the recent weakness in the share price has largely been due to worries about the level of the group’s borrowings.  Further disposals may also be on the agenda at the group with the loss-making gas business a likely candidate for sale.  This disposal is the first step in the refocusing of the business and we believe that that the shares are a BUY FOR RECOVERY.

Findel – 23p

23 April 2010 – trading update

Another disappointing trading update from the home shopping and educational supplies group Findel is clearly trying the patience of even the most loyal of the group’s shareholders.  Although revenues for the year to 3 April are likely to be similar to last year, a poor performance in the educational supplies division and the adoption of more prudent accounting policies in the latter business mean that overall group profits are likely to be lower than expected.  Before exceptional items, pre-tax profit is now expected to be between £16m and £17.5m for adjusted earnings per share of 3.5p.  Although some improvement is likely in the new financial year, the group still has significant borrowings of over £300m at the year end and this is likely to be a drag on the share price.  Brave investors may like to buy shares now, but those of a more cautious nature may prefer to wait until the announcement of the preliminary results in June.  HOLD.     

Lavendon – 83p

22 April – trading update

It is pleasing to see that despite poor trading at the start of the year, due to the adverse weather conditions, an improvement in trading more recently means that rental group Lavendon should be able to make good this shortfall over the rest of the year.  There have been clear improvements in activity levels from March onwards, especially in Germany, whilst demand in the Middle East continues to pick up.  The share price remains some way below the 12-month high of 139p, thus leaving scope for further upside. BUY.

Managed Support Services – 7.625p

22 April 2010 – directors dealings

Readers who invested in our Share of the Year will hopefully be re-assured by the news that five of the directors acquired just under 1.1m shares in the company at a price of 6.8p per share.  The share price has been very weak of late and this news may encourage other investors into the stock.   The shares remain a BUY.

Stadium – 63p

20 April – AGM statement

The company has reported that the first quarter of 2010 has shown a significant improvement in trading over the first quarter of 2009, continuing the trend seen in the last quarter of 2009, when activity levels notably increased.  Although the shares have moved up from 54p last month, they still look cheap based on our forecasts of pre-tax profits of £3.1m for earnings per share of 8.2p.  With a prospective yield of almost 4% as well, the shares remain a BUY.

cityconfidential © 2020 | T&Cs | Privacy | Wealth Warning