I’m writing this on Tuesday afternoon, after an action-packed morning for the SIF portfolio.
In this column I’ll take a look at the latest results from Norcros and at Go-Ahead’s costly year-end trading update. I’ll also follow up on the comments I made last week about the shortage of true defensive stocks in the portfolio. What kind of company are we missing, and why?
Norcros edges higher on solid results
Tuesday was a down day for the markets. Bad news generated a much stronger reaction than good news. Recent portfolio addition Norcros headed into the close just 2% higher on Tuesday evening, despite reporting a 29% increase in underlying pre-tax profit, which rose to £20.4m.
Shareholder and small cap editor Paul Scott took a detailed look at yesterday’s results from Norcros. You can read Paul’s comments here.I share Paul’s view that with a strong balance sheet and a P/E ratio of about 7, it’s hard not to see value in Norcros. The only thing I’d add to Paul’s commentary is to emphasise that free cash flow remains strong at Norcros. This is important, in my view.
When companies are growing by acquisition, management…
Disclaimer: Please note all prices are for information only, they should not be relied upon for accuracy or trading. All prices quotes are based on CFD prices and are similar though not always identical to real exchange prices. STOCKTRKR or anybody connected with STOCKTRKR will not accept any liability for loss or damage arising from use of any information/commentary/charts or articles which is provided 'as is' for educational purposes only, nothing contained on this website should be considered as investment advice - please seek proper investment advice from registered financial broker or institution if you wish to trade on global markets and ensure you are familiar with the risks.
