Bought some $SAL.L and $MONY.L

$SAL.L (SpaceandPeople) ” is engaged in the marketing and selling of promotional and retail licensing space on behalf of shopping centers and other venues throughout the United Kingdom, Germany and India.”

The share price is down 24% from its 52w high, -12% from its 50dma, and a little over 3% above its 200dma (source: Stockopedia). So we’ve had a nice pullback and we should get some nice support. The company passes Stockopedia’s GARP and Free Cash Flow Cows bargain screen.

Rolling PE is 12.5, and analysts are pencilling in some robust growth in double-digits. So it looks good value. The half-yearly report issued on 9 Sep (http://is.gd/T0vuH0) reported net revenues up 20%, operating profit up 50%, basic earnings per share up 74%, and an improved net cash position. “I am confident that we have continued this momentum into the second half of the year. There are always challenges to be faced, but we aim to be quick enough and creative enough to address these and present new services to the market. We are all excited by the opportunities that pop-up retail offers centres whether in the form of Mobile Kiosks, Fixed Kiosks or shop units. ”

Looks good.

109p

$MONY.L (Moneysupermarket.com Group). “The principal activity of the Company is the introduction of business to financial, insurance, travel, home services and other product or service providers through its Websites”. No doubt everyone will recall their adverts “You’re so money supermarket, you don’t even know it.” Whatever that means.

The company passes the T Rowe Price Stockopedia screen, and is a top 10 holding in the Standard Life UK Smaller Companies Trust. Shares are well off their highs: nearly 34%, likely due to the high value of director sells in April-June. Let’s hope that doesn’t portend something ominous.

The company is on a rolling PE of 14.5, with estimated double-digit growth in EPS. So that looks pretty good. In their interims issued at the end of July (http://is.gd/6vviKg), revenues were up 10%, profit after tax was up 71%, dividends were up 20%, but cash balances were down. “The Board remains confident in the long term prospects for the Group underpinned by the continued structural growth opportunities in the price comparison marketplace.”

147p

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About mcturra2000

Computer programmer living in Scotland.
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6 Responses to Bought some $SAL.L and $MONY.L

  1. dave says:

    Brave call on Money Supermarket – reckon those directors know something the rest of us don’t

    Space and People is a great company though. Worked with them a lot over the years doing shopping promos and they always seem to be ahead of the others in the industry. Can’t help but feel it may be a little late to have jumped on board (2012 would’ve been better) but then Aim shares have only just been allowed into ISAs from August so this is the first opportunity of a pull-back since then.

    I’m currently looking at Tangent plc (TNG) in the same sort of area. I deal with their digital printing arm – printed.com which is well run. They had a very positive September trading update (considering Summer is normally a quiet time for agencies this is good news) and also have some exposure to the uplift in property through their specialist property agency, Ravensworth. Like Space and People I’ve been watching for years but haven’t been able to act on them as Aim shares were not eligible for ISAs. Got any thoughts on them Mr McTurra?

    • mcturra2000 says:

      I take your point on MONY. There was some hefty director sells, which may yet to prove “rather prescient” on their part. The narrative of the latest RNS reads well, though. Maybe when the board say they say they are “confident in the long term”, it’s code for “but wait ’til we tell you about the short term!”. We’ll see. I only have a small position in it.

      I’d like to take a further look at the companies you’ve suggested, and have no thoughts on them at this point in time. I’m sure your analysis would be better than mine in any case, as I consider myself very naive when it comes to investing.

  2. Don says:

    Hi mcturra2000,
    I like your Spaceandpeople idea. Where did you find out about this company?
    Cheers

    • mcturra2000 says:

      It had been mentioned before by some value investors, although I hadn’t actually paid much attention to it. On the LSE website (www.lse.co.uk) I saw that it was a top faller for the day. Then, by digging a little further, I discovered all the facts that I noted above using resources like Investegate [sic], Stockopedia, and the Google Finance stock charts. The resources are free, except Stockopedia. However, Paul Scott does write about small caps every day over Stockopedia (http://www.stockopedia.co.uk/contributors/paul-scott/), which are free to read, and he’s a vastly better investor than me. I think he mentioned SAL at around the same time as me, and had increased his position likewise; if memory servers correctly. So we must have both been seeing pretty much the same thing in the company.

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