Here's an ISA-ble one for you - Hercules Property Services (HPS).
It's a firm of auctioneers, property managers, consultants, surveyors, insurance - so anything to do with property.
At 218p, HPS is trading on a forward P/E of just 5.5 to June 2005, with around a 4% dividend yield.
- the company AESOP recently bought in 20,000 shares at 209.5p
- the introduction of REIT's in the UK as tax-efficient property investment vehicles should boost the sector further
- the September final results comment on HPS' outlook was:
"'I am confident that we are now well placed to significantly improve the
Group's operating performance. Every one of our operating divisions and
business units has reason to believe that its performance can be improved
in the coming year.'"
- press reports note that the Deacon insurance division has been turned around strongly
- HPS has yet to fully regain the trust of the market after earlier hiccups, despite a (profitable!) run-up this year. Adjusted EPS to 30 September 2003 was 32.6p. The forecast for this year is 35.6p. If the trading statement in February indicates that trading is strong, as IMO it may well do, the re-rating could be quick as the shares are pretty volatile and illiquid.
- and there's often takeover gossip around HPS to boot.
- a one-bagger would only require a P/E of 11, even without upward revision of forecasts.
As others have said, this is a good idea for a thread.
