OMG! Tuesday 21 September: Summary of last week’s newsletter

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The OMG newsletter recommends at least 15 companies each month, using the writers’ experience of small caps to give you a winning edge. Last week they wrote about Portmeirion and Petards. Read about these Opportunities 4 Material Gains!

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Mid-week Tip

Branded ceramics and fragrances manufacturer Portmeirion (LSE: PMP) has exceed not only its 2020 interim revenues but also its 2019 interims. Even if acquisitions are stripped out the organic growth is 7%. Profitability has rebounded and investment in manufacturing and marketing will provide a base for significant growth over the next two years.

The share price jumped following the interims but there is still a lot more to go for. There is no interim dividend, but a final dividend is promised. The yield could be just under 2% and there would be a significant increase for 2022.

The shares are trading on around 18 times prospective 2021 earnings, falling to 12 next year. The strong brand portfolio underpins the valuation and there will be substantial progress in profit over the next few years. Buy.

 

Results Preview

Petards (LSE: PEG) 9.75p (9.5p-10p) – Interims to June 2021 are expected shortly, from Petards Group (LSE: PET). The Covid hit Finals to December 2020, followed the negative trajectory with lower turnover at £13m from £15.6m and increased losses to  £0.58m ( £0.2m). PEG formerly part of Vickers, are a long established- developer of advanced security and surveillance systems initially for rail OMEs, which has become very competitive so increasingly focused on road transport, and defence clients which significantly reduces the risk profile.

The finals reported a £10m pipeline of business which can be ‘lumpy’  if it’s from rail OMEs but a number of new [smaller] orders were fulfilled in the first half.  A £0.5m contract for its QRO Solutions subsidiary to supply in-car speed enforcement solutions for police vehicles could well lead to follow-on orders. The interims could show recovery signs but the prospects for sustainable growth without corporate activity is not clear ….

Reviews

CALL – 63.5p- Mixing Message

SYM – 26.5p- Time 2 Deliver

VRE – 17.25p- Enough Demand?

ANX – 143.5p – Strong vehicle demand

KAPE – 420p – Express VPN deal

DNL – 58p – Trials coming up 

ELCO – 128p – Increasing marketing spend

CKT – 54p – Moving to a SaaS business

TWD – 236p – Ready for EV demand

XPD – 68p – Southampton investment

IQG – 132p – Take some profit

 

Finally :  The discordant economic  music markets vulnerable to   ‘black swan’ events that tend to happen this time of year…..

 

OMG!  Opportunity for Massive Gains is a Premium Newsletter on ADVFN with two reports each week written by experienced small cap specialists. To get trips like this every week, sign up here.

 

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