zulu principle2
19 Jan 2015
Why I Bought at £3.20 What I look for when buying a shareGood track record, 4 years of continual growth which can be a combination of historic & forecast growth – No 1 Historic and 1 ForecastLow Forecast PER (<16) & PEG (<0.7) and good EPS Growth (>15%) - YesBased on £3.19 on 16th Jan-20152015 EPS Forecast 36.8p EPS Growth 46.6% PER 8.7 0.19 2016 EPS Forecast 36.8p EPS Growth 00.0% PER 8.7 Positive 1 Year Relative Strength - Yes Positive 1 Month Relative Strength – YesWithin 5% of Peak – YesBased on 2014 Figures ROCE of 20% - Yes 23% Profit Margin of over 7.5% - Yes 7.5%Cashflow Per Share greater than EPS – Yes 1.54Low Gearing – No 45%Director Share holding >10% - Yes 40%Recent Directors Dealing - NoneRecent Institutional Selling - YesVanshap Capital Value Fund reduced holding by 99,086 shares in Jan-15Quick ratio of > 1.0 but preferably >1.5 – No 0.89 Dividend (a nice to have) – YesLast outlook statement must be positive – Yes 16th Jan-15Looking at this financial year, we have been very encouraged by trading in the run up to the 2014 Christmas season, which saw strong sales at consumer level and were ahead of our expectations. To date, sales in the current financial year are up approximately 28% over the same period last year. The business is benefiting from the Group's stronger offering as a whole and this bodes well for the 2015 calendar year. The Directors also remain confident that the Company can deliver another year of solid progress, resulting in achieving at least current market expectations for the year ending 31 August 2015.See what made me buy this share at[link] follow me on Twitter@GrowthStocksUK
janebolacha
16 Jan 2015
Low PER Current expectations, according to Stockopedia, are for normalised EPS in the current year of 36.8p. This is now likely to be exceeded. Let's say 40p, which is perhaps conservative. Therefore, even with today's rise, the PER is only around 8. With the BOD sounding very optimistic for the "calendar year 2015", that sounds like they expect a further rise in profits in 2015/16. So we could well be looking at a forward PER in the 6-7 range, this for a stock with, imo, limited downside risk in the near term, given the very likely rise in consumer spending power as spending power increases with growth and reduced oil prices.All IMHO, DYOR.
janebolacha
16 Jan 2015
Another tremendous performance from a great team! [link]
II Editor
03 Dec 2014
NEW ARTICLE: Character celebrates Christmas early "Toy maker LSE:CCT:Character is back to its old self. An awful first half of 2013 plunged the firm deep into the red, but profits are back to pre-slump levels, and trading in the run-up to Christmas has been better than expected. That's why the ..."[link]
Chrissp
02 Dec 2014
Price Rise Obviously results for year to 31 August 2014 will be good when announced next wee. Those on the inside track have been buying today causing a 6 per cent rise
