Which Stocks to Buy?
So, we have been deliberating over which stocks to buy this month, and there are quite a few. There are several great companies that were highlighted by the screener results in our most recent monthly watch list. However, there are also a couple of companies that are not on that list, because they are small-caps (and we only screen the FTSE350), and a third potential investment which I have been waiting for is a micro-cap startup company. Read on for an overview of each of these potential purchases for March. Don’t forget to leave me a comment with your thoughts below! Here are the 3 main contenders:
- Bloomsbury Publishing;
- St. Ives;
1. Bloomsbury Publishing
A straightforward media company, BMY as they are known on the FTSE publish books in the UK and the USA, including the Harry Potter series. Now, I am not a fan of Harry Potter, but there are oodles of people who are, so I’m sure they are not going to disappear overnight. However, I know Bloomsbury through their academic publishing side, which is highly respected and growing.
A quick overview of the numbers from Investorease:
|Shares in Issue||74,713,778 (Ord 1.25p)||SEAQ/Epic||BMY|
|Annualised Dividend||5.8600||Dividend Cover||1.8|
|Latest Pay date||04-12-2014||Latest Ex-Div date||05-11-2014|
|Market Capitalisation (£m)||112.818||Enterprise Value (£m)||144.829|
|Sector||Media||% of Sector by Cap||0.120|
|Industry||Publishing||% of Industry by Cap||0.327|
|Last RNS Announcement||03-03-2015||Listing||FULL|
|Last Annual Results||20-05-2014||Last Interim Results||23-10-2014|
|Total Assets (m)||158.084||Total Liabilities (m)||42.048|
|Total Equity (m)||116.036||Cash & Equivalents (m)||10.037|
|Net Gearing (%)||20.249||Gross Gearing (%)||26.599|
|Net Assets (m)||116.036||Op Cash Flow (m)||11.112|
|Quick Ratio||1.770||Current Ratio||2.437|
2. St. Ives
This is essentially an alternative to Bloomsbury, although they are involved in printing services, so they are technically support services I guess.
Quick overview, again from the wonderful investorease website:
|Shares in Issue||126,209,682 (Ord 10p)||SEAQ/Epic||SIV|
|Annualised Dividend||7.2500||Dividend Cover||1.19|
|Latest Pay date||08-05-2015||Latest Ex-Div date||09-04-2015|
|Market Capitalisation (£m)||226.546||Enterprise Value (£m)||388.812|
|Sector||Support Services||% of Sector by Cap||0.200|
|Industry||Business Support Services||% of Industry by Cap||0.292|
|Last RNS Announcement||10-03-2015||Listing||FULL|
|Last Annual Results||07-10-2014||Last Interim Results||10-03-2015|
|Total Assets (m)||318.919||Total Liabilities (m)||174.602|
|Total Equity (m)||144.317||Cash & Equivalents (m)||12.336|
|Net Gearing (%)||50.880||Gross Gearing (%)||54.748|
|Net Assets (m)||144.317||Op Cash Flow (m)||25.907|
|Quick Ratio||0.933||Current Ratio||0.991|
I am not liking how low that dividend cover is! I have seen this company crop up here and there on various small cap sites. It recently caught my eye again, due to this article on Interactive Investor – who also happen to be by NISA broker. Make of it what you will, but I think they are a grower and could be worth investigating further.
I have some close connections to the startup community in Cambridge. giftgaming is one startup company that I feel is really promising and will make some significant changes in the gaming industry. You can find out more about giftgaming here, but essentially, they are involved in the monetisation of games in a non-intrusive manner. I think it’s a fantastic idea, and I hope that it will change the way that games are monetised forever. I know how dedicated the CEO is and, in fact, I know his whole team – and they’re excellent. I’m rooting for them to do well, and I think they’re making great headway along the right tracks.
The BIG warning: Investing in startups is very, very risky – which is why the government have schemes such as SEIS which allow you to get huge tax breaks on your investment, as well as it being free from capital gains tax if you hold it for at least 3 years. This is a great way to save tax and also to support baby companies as they take some of their first steps in the world of raising finance to grow their companies. giftgaming is raising this round through SEEDRS*, which they also used last time in November, when they were the most oversubscribed company that month. May I just say again, that it is very very risky to invest in startups. I am not a financial advisor. Do your own research!
What do you think? Would you invest in any of these companies? Which stocks are you planning to buy this month? Let me know, leave a comment below!
photo credit: freedigitalphotos.net/bplanet