Book publisher BMY (Bloomsbury) announced an after-hours RNS yesterday, stating:
> revenues are slightly ahead of expectations, profits will be well > ahead of the Board’s expectations. … net cash balance is now > expected to be around £25m, significantly ahead of expectations. The shares are up 8.5% (as you might expect!) to 181.7p.
Stockopedia reports that Its P/FCF (price to free cashflow) is 9.1, it has net cash, and its dividend yield is 4.3% and its Stock Rank is 99.
I had tweeted yesterday that I thought an easy way of making money would to be to buy stocks of a P/FCF, PBT < net debt/3. A high dividend yield (say above 3%) is also a bonus.
BMY meets such criteria. It’s nice to see a welcoming market reaction from news, too.
I hold this (at 190p), and this looks a pretty solid buy.
Let’s follow this up in a year’s time, see how we’re doing.