Augean bid upside, Image Scan, Coral, National World, Braemar, Flowtech, Air Partner
2nd June 2021
Mark Watson-Mitchell suggests that there could be a bid for Augean before its AGM on 16 June and that there may well be some further upside in the shares
Augean (LON:AUG) – hold tight for the (first) bid being made
So, what will the bid price be for this waste specialist and regeneration group?
Estimates in the market seem to range from 280p to 350p a share.
We will just have to wait and see what Morgan Stanley Infrastructure are willing to offer for this excellent group.
My view is that holders should sit very tight.
When Victor Hill and I were chatting with our Editor-in-Chief James Faulkner at the end of The Master Investor Show interviews in December last year, James asked me for two of my favourite stock picks.
They were both centred on the waste industry – Renewi (LON:RWI) at around 33p, now 55.5p, and Augean (LON:AUG) at some 197p, now 277.5p (after having touched 315p on the bid prospect news).
Both are cracking businesses that not only help to clear our mess out of the way but also then utilise it where they can in regenerating it into products like bricks, tiles etc.
Both stocks are a firm hold until further developments – but it does go to show that ‘quality value’ always gets a good price.
(Profile 31.10.19 @ 158.5p set a Target Price of 200p*)
(Profile 10.06.20 @ 185p set a Target Price of 235p*)
Image Scan Holdings (LON:IGE) – price objective beaten within four days
Well, this little group has suddenly come to investor’s attention following my profile on the x-ray security systems last Wednesday.
In fact, it has been one of my quickest profile performer’s ever.
Its shares saw good dealing volumes on Wednesday and Thursday last week, then being the fourth best performing stock on the market.
Yesterday morning the shares touched 4.15p compared to my 2.75p profile price and well and truly beating my 3.5p price objective.
And what is more, looking at the share price chart it does look as though there is momentum enough to take them up through the 5p level soon.
They closed last night at 4p, up 12.7% on the day, after massive 2.6m dealing volume nearly seventeen times its daily average.
(Profile 26.05.21 @ 2.75p set a Target Price of 3.5p*)
Coral Products (LON:CRU) – looking stronger
Yesterday’s Year End Trading Update from this Manchester-based plastic products maker was very encouraging indeed.
It shows that the company has now fixed upon a strategic course of organic and acquired growth following its recent deals.
The cash balances are strong while the current year trading, to end April 2022, has started well and is up to management expectations.
There have been some larger investor holdings changing hands of late, which actually shows that it is a good market for the stock.
And the dividend of 0.5p per share has been well received as a token to longer-term holders.
Jason Streets, analyst at the company’s brokers WH Ireland, considers that the company is in a very strong position to help consolidate the heavily fragmented British plastics industry.
The shares at just 14.5p continue to look to be an attractive counter, after touching 15.5p on the Update news.
(Profile 28.04.21 @ 14p set a Target Price of 18p)
National World (LON:NWOR) – set to double?
Read all about it…read all about it … going like a train.
These shares, now just 24.5p, could well hit 40p fairly soon.
The 21 weeks to 29 May have seen this new and fast-emerging media group making significant headway following the ‘vehicles’ purchase of the digital rump of the Johnston Press International group way back in early January this year.
Boss David Montgomery and his management crew know a thing or two about the newspaper and media sector. They are using that knowledge and experience to help them make the JPI titles massively more appealing and profitable.
Yesterday’s Trading Update was the first tangible proof that the team have been hard at work and have been successful at their tasks.
Analyst Paul Richards at brokers Dowgate Capital has set a price objective of 32p on the group’s shares, while stating that his analysis indicates a price of over 40p could be generated as the group deploys its capital to acquire heritage and/or digital media assets.
There were fifteen times the average daily volume yesterday, at 2.05m, closing up 11.4% at 24.5p on the day.
(Profile 18.05.21 @ 18p set a Target Price of 25p)
Braemar Shipping Services (LON:BMS) – finals out tomorrow (3 June)
Tomorrow sees my favourite shipbroking business reporting its results for the year to the end of February 2021.
We already know that the final two months of the group’s trading year saw strong trading, giving us good hope that this current year has kicked off well.
Analysts Guy Hewett and Michael Clifton, at the group’s brokers finnCap, are very keen on the stock, giving it a price aim of 281p.
They consider that the shares, now 242p, have good upside potential both in the short and long-term.
Hold very tight, these shares are very undervalued.
(Profile 05.12.19 @ 185p set a Target Price of 250p*)
(Profile 20.05.20 @ 99p set a Target Price of 150p*)
Flowtech Fluidpower (LON:FLO) – AGM Statement tomorrow
This technical fluid power component product and services group will be holding its AGM tomorrow.
Hopes are high that the group could well be seeing a return to trading at around its 2019 levels before the end of this current year.
The first quarter to end March has seen revenues and margins coming in at slightly higher than anticipated by its management.
So let us hope that we have a report of a continuation of that trend in tomorrow’s statement.
The shares, closing last night at around 128.5p, have been showing some dealing strength in the last week or so.
(Profile 23.04.21 @ 105p set a Target Price of 130p *)
Air Partner (LON:AIR) – still a load of ‘blue sky’
Could the shares of this international aircraft charter and services business touch 100p ahead of the group’s AGM on Thursday 8 July?
I think that is very possible, considering their recent strength.
They are cheap anyway, but just looking at the share price graph suggests that the 100p level is an easily penetrated level.
Now at 86p they look to be an appealing purchase.
(Profile 16.12.20 @ 69p set a Target Price of 89p*)
(Asterisk* denotes that Target Prices have been achieved since profile publication)