SeaEnergy plc: Is This Software Gem Valued At Just 7.5 Times Earnings?

10 July 2014
By Maynard Paton

*** EDIT: 16 MAR 2015: I HAVE SINCE SOLD THIS SHARE. PLEASE READ THE COMMENT SECTION AT THE END OF THE POST *** 

SeaEnergy (LON: SEA) is an unusual holding in my portfolio for two reasons.

First, I found the idea from a bulletin board rather than through my own market trawls. Second, the business does not offer the time-tested management that I prefer to see running my investments.

So there could be danger ahead here!

But drawing me to this £20m AIM business is an attractive software subsidiary that offers high margins, great cash flow, blue-chip clientele, recurring revenues and respectable growth prospects.

In the mix also are a couple of start-up divisions that I’m hopeful can soon reach breakeven, as well as a stake in a quoted oil small-cap that might one day deliver useful upside. Indeed, my valuation sums indicate the group’s software ‘gem’ could be valued at just 7.5 times profits.

Read moreSeaEnergy plc: Is This Software Gem Valued At Just 7.5 Times Earnings?

City of London Investment Group PLC: How I’m Banking On An 8.5% Dividend Yield

08 May 2014
By Maynard Paton

I love to buy shares run by owner-orientated bosses. You see, they often ensure shareholders are amply rewarded with reliable dividends and are generally the best people to put things right when progress doesn’t exactly run to plan.

That is certainly the case I think at City of London Investment (LON: CLIG), an emerging-market fund manager, where chief executive Barry Olliff remains committed to a healthy payout even though earnings have suffered a setback.

Having started to issue perhaps the most detailed ‘forward earnings guidance’ of any quoted company, Mr Olliff is perhaps the most open, upfront and shareholder-friendly executive I have ever come across. 

Read moreCity of London Investment Group PLC: How I’m Banking On An 8.5% Dividend Yield

Mountview Estates plc: Why I’m Up 70% In 3 Years

18 April 2014
By Maynard Paton

I always like to buy valuable assets at a steep discount. Today I’m delighted to showcase how I spotted one such investment, Mountview Estates (LON: MTVW), back in 2011 — and how it has since delivered very handsome gains.

At the time of my purchase, I calculated the potential value of Mountview’s balance sheet could have been more than twice its then market cap.

The shares have subsequently rallied 70% as the valuation discount narrowed and the underliying business performed well.

Add in conservative leadership and a terrific dividend history, and I’m convinced this sturdy £273m small-cap can continue to provide me with dependable, long-term returns.

Read moreMountview Estates plc: Why I’m Up 70% In 3 Years

Tasty plc: How I’m Projecting A 4-Fold Return

10 April 2014
By Maynard Paton

I’m sure we’d all love to own a ‘tenbagger’, a term master investor Peter Lynch coined to describe a share that increases ten-fold in value. Well, the family management I’m going to tell you about today has already created two tenbagger opportunities for ordinary investors — and I’m confident its latest venture can deliver an outstanding gain as well.

The family in question is the Kayes and the venture is Tasty (LON: TAST), a £63m restaurant business trading under the Wildwood pizza and dim-t dim sum formats. Currently operating from just 31 outlets, I expect a successful rollout of new restaurants to support rapid profit growth and extensive share-price upside during the next five to ten years.

Read moreTasty plc: How I’m Projecting A 4-Fold Return

Tristel Plc: Why My Latest Purchase Could Double Within 3 Years

20 March 2014
By Maynard Paton

Today I am going to tell you about my latest purchase and why I believe the share price could double within three years.

The company is Tristel (LON: TSTL), a £20m supplier of heavy-duty hospital disinfectants. I’ve been a buyer since December 2013 and my average entry price is 46p. If all goes to plan, my projections suggest the price could trade beyond 100p by 2017.

Read moreTristel Plc: Why My Latest Purchase Could Double Within 3 Years