Stocks to watch in July
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Shares in fashion retailing phenomenon SuperGroup have more than trebled in value since they were floated on the market in March last year. It owns the Superdry fashion label, favoured by David Beckham and Leonardo DiCaprio, which continues to defy the high street gloom.
With breakneck expansion going on in the UK and mainland Europe, revenues for the year just ended are expected to surge from £140 million to £243 million, delivering profits of around £50 million, against £22.5 million last time.
The market expects chief executive Julian Dunkerton to oversee a doubling of Superdry sales and profits over the next couple of years. That would reduce the forward earnings multiple to 16.5. It's a strong buy, according to seven of the nine brokers following the shares.
Computer security services specialist NCC Group checked into the market with an encouraging trading update in April showing revenues 53% up after 10 months. The company - a specialist in defeating hackers - has had a solid track record since joining AIM in 2004.
Profits doubled to £13.16 million in the five years to May 2010 and results in early July should show pre-tax profits hitting £17.2 million. Steady growth in earnings and dividends are forecast for the next two years, reducing the forward earnings multiple to 13.3.
Photo-Me International is the world's biggest photo booth operator. But size isn't everything, and the group's shareholders have suffered from its uneven track record. In 2006, the group delivered delivered profits of £28 million, but it had plunged into the red to the tune of £20 million a couple of years later.
A recovery plan has been put together, and after a strong half-year trading statement, profits look on course to rebound from £9.25 million to £17 million for the year just ended. Brokers have pencilled in profits of £18.5 million for the current year.
Shareholders have been on a rollercoaster ride for the past year. The shares climbed from 30p to a peak of 80.5p last summer, but they have since drifted down to 47.5p.
Software computer services group Anite saw its shares plunge from 80p to 25p in the 2008/09 market shake-out. The group made a £4 million loss in the year to April 2010, but it is on course for profitability again in the year just ended.
Analysts project profits of £13.64 million for the current year and have high hopes that profit growth will continue over the next couple of years to £19.7 million.
The market has already anticipated a recovery and the shares have been climbing steadily to 67.25p in the past year. At this level, the price earnings ratio falls to 14.2.
KIRKLAND LAKE GOLD
There is a lot of enthusiasm in the market for Canadian mining play Kirkland Lake Gold. Its shares shot up over the past year from CAN$7.26 (£4.61) to a peak of CAN$16. The rise has partly been driven by the prospect of the group turning a profit for the first time in the year just ended.
The market is hoping for CAN$15 million in pre-tax against losses of nearly CAN$8 million last time.
The five brokers who follow the shares are hopeful that profits will hit CAN$78 million this year and CAN$162 million the following year.
This article was taken from the June 2011 issue of Money Observer.