Tremor, Safestyle, Frontier Devs, Dekel A-V, Surface Transforms, Begbies, Costain and Harworth
17th March 2021
Tremor International (LON:TRMR) – rumbling in New York’s jungle
What a stunning performer this stock has proved to be, with its shares now at 617p after hitting 700p at one stage, up nearly 450% on my profile price of 14 months ago.
And they are going even higher yet.
The prospect of the programmatic advertising platform for digital video and CTV advertising group achieving a US listing for its shares has ignited interest.
Already it has submitted its SEC filing for a US IPO sometime in the next three months.
Analysts Michael Hill and Lorne Daniel at brokers finnCap have a price objective of 1000p on the shares.
Stay aboard for the bumpy ride ahead.
(Profile 16.01.20 @156p set a Target Price of 235p*)
Safestyle UK (LON:SFE) – looking for 65p
On Thursday of next week (25) this retailer and manufacturer of PVCu replacement windows and doors will declare its 2020 results.
Analysts are estimating sales of £114m (£126m) and an increased pre-tax loss of £5.2m (-£1.5m).
However, we now know that this year has started well and we could see £140m of revenues kicking in some £4m of profits and 2.4p per share of earnings.
Going into next year £150m of sales could pick up profits to £7m, worth 4.1p per share in earnings.
The company’s broker, Liberum, is rating the shares as a ‘buy’ looking for 65p.
Despite improving 31.5% since my profile, just over two months ago, investors should hold very tight.
(Profile 06.01.21 @ 36.5p set a Target Price of 48p*)
Frontier Developments (LON:FDEV) – sales still on the increase
This Cambridge-based video games developer and publisher could see sales for this year to end May increase from £76.1m to £90m, with pre-tax profits rising from £18.2m to £22m and earnings up from 46.4p to 51.4p per share.
Olivia Honychurch at Liberum estimates £145m sales, £37.6m profits and 86.8p per share earnings.
Understandably she rates the shares, now 2635p, as a ‘buy’ with a price objective of 3540p.
(Profile 01.10.19 @ 1000p set a Target Price of 1500p*)
Dekel Agri-Vision (LON:DKL) – double digit increases
For the sixth month running this sustainable agriculture group has presented a double-digit increase in production, sales and prices.
Andrew Simms at brokers Arden Partners rates the shares as a ‘buy’ looking for 9.3p as his objective.
He is predicting a turnaround this year from an estimated adjusted pre-tax loss of €1.8m to a €0.6m profit to end December.
Next year he sees a lift in sales to €44.3m kicking profits up to €2.5m.
This little penny stock, now 4.77p, has done well so far, up 138% in six months. I see no reason to sell yet.
(Profile 23.09.20 @ 2p set a Target Price of 3.5p*)
Surface Transforms (LON:SCE) – ready for fast acceleration
The manufacturers of carbon fibre reinforced ceramic automotive brake discs could well now be announcing its 2020 results next month, which is earlier than had been previously expected.
There is massive anticipation of this little company really breaking its way into the carbon-ceramic discs market, which is 97% dominated by one company.
And it is now achieving orders from OEMs in the global automotive markets.
Very much a longer-term hold, the group’s shares, now 64.5p, have massive upside potential, but remain speculative until it really begins to drive at higher speed.
(Profile 19.09.19 @ 17p set a Target Price of 30p*)
(Profile 08.01.21 @ 50p set a Target Price of 65p*)
Begbies Traynor (LON:BEG) – fair value of 140p
The news that last week this financial advisory group was successful in its £22m fundraising @ 105.50p per share, has really helped to boost interest in the group’s shares.
Currently they are trading at around the 114p level, while Equity Development has placed a ‘fair value’ of 140p, looking for £10.2m (£9.2m) adjusted pre-tax profits on the back of revenues of £76.5m (£70.5m) for the current year to the end of April.
Next year they see £88.9m of revenues and £13.6m of profits, worth 8.6p per share in earnings.
Now on very much of an expansion phase. Hold tight for the time being.
(Profile 26.11.19 @ 85p set a Target Price of 110p*)
(Profile 21.04.20 @ 93p set a Target Price of 110p*)
Costain Group (LON:COST) – is it climbing back up again
Yesterday’s finals announcement for the 2020 year showed revenues of £1.07bn (£1.17bn) with adjusted profits down from £34.6m to £13.9m and earnings slashed from 25.1p to just 5.8p per share.
Although revenues may well stand still this year estimates are for profits to double, jacking earnings up to 8p and capable of a 2p dividend per share.
Analyst Joe Brent, at the infrastructure solutions group’s brokers Liberum Capital, rates the shares as a ‘buy’ looking for 80p.
They closed last night at around 71p. They have a very long way to even get back up to my profile price.
(Profile 05.09.19 @ 151p set a Target Price of 250p)
Harworth Group (LON:HWG) – beds and sheds increase in value
Confidence for this current year is being shown by this property regenerator and developer.
Yesterday it announced its 2020 results showing that its H2 saw a big swing around from the poor H1 outcome.
Property values are beginning to pick up again while its rent collections were 96% and a vacancy rate of only 4.5%.
Its net development value was worth 160p per share at the year end, compared to its 125p share price.
Its brokers are rating the shares as a ‘buy’ looking for 145p.
(Profile 25.07.19 @ 130p set a Target Price of 170p)
(Asterisk* denotes that Target Prices have been achieved since profile publication.)