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        <title>Nanoco News | The Twelfth Magpie</title>
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	<title>Nanoco News | The Twelfth Magpie</title>
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                                <title>Why this small-cap stock could be the UK’s most exciting investment opportunity right now</title>
                <link>https://www.twelfthmagpie.com/2017/10/10/why-this-small-cap-stock-could-be-the-uks-most-exciting-investment-opportunity-right-now/</link>
                                <pubDate>Tue, 10 Oct 2017 09:48:30 +0000</pubDate>
                <dc:creator><![CDATA[Edward Sheldon, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Bioventix]]></category>
		<category><![CDATA[Nanoco]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=103561</guid>
                                    <description><![CDATA[<p>Edward Sheldon identifies a fast-growing small-cap biotech stock that he believes has considerable potential.  </p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/10/10/why-this-small-cap-stock-could-be-the-uks-most-exciting-investment-opportunity-right-now/">Why this small-cap stock could be the UK’s most exciting investment opportunity right now</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<img width="1024" height="550" src="https://www.twelfthmagpie.com/wp-content/uploads/2017/06/HeroImage-1024x550-ScientistLab.jpg" class="attachment-rss-thumbnail size-rss-thumbnail wp-post-image" alt="Scientist in lab" style="float:left; margin:0 15px 15px 0;" decoding="async" fetchpriority="high" /><p>Today I’m looking at two contrasting small-cap stocks. One is a stock that I would steer well clear of, while the other appears to be a genuinely exciting investment opportunity, in my opinion.</p>
<h3>Trending lower</h3>
<p>Once a bulletin board favourite, <strong>Nanoco</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-nano/">LSE: NANO</a>) has been a disappointment in recent years. The £60m market cap company manufactures quantum dots &#8211; miniscule fluorescent semiconductor nanoparticles that emit different colours, and are used in applications such as lighting, bio-imaging and solar energy. While the technology sounds interesting, Nanoco has failed to deliver for shareholders.</p>
<p>The company’s financials don’t make for great reading. For example, last year revenue fell to £0.47m from £2.03m the year before, and the group recorded a net loss of £10.6m. While revenue is expected to climb to £1.55m for the year ended 31 July, another hefty net loss of £9.8m is anticipated.</p>
<p>Furthermore, the group has struggled to generate adequate cash flow, and was forced to raise £8.6m last week at a significant discount to the share price at the time. That’s clearly a disappointment for existing investors, as the fundraising will dilute their shareholdings significantly. </p>
<p>Nanoco’s share price has been locked in a downtrend for the past four years now, declining from around 180p to 26p today. With that in mind, I’ll be steering well clear of the company.</p>
<h3>Surging higher</h3>
<p>However, as a contrast, one small-cap company that looks very interesting, in my opinion, is £140m market cap <strong>Bioventix</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-bvxp/">LSE: BVXP</a>). Trading at just under 1,400p at the start of the year, the shares now change hands for 2,900p, a year-to-date gain of over 100%. Furthermore, since moving to AIM in 2014, the stock has risen by an amazing 400%.</p>
<p>So what’s all the hype about and more importantly, can the momentum continue?</p>
<p>Bioventix specialises in the development and commercial supply of sheep antibodies for use in immunodiagnostics. Antibodies are proteins that are produced by the immune system to help stop viruses, infections, bacteria and disease harming the body, and Bioventix claim that its sheep-derived antibodies are more effective than traditional rodent-based varieties. The firm earns revenue by licensing its products to other companies that use them for clinical diagnostic applications such as blood testing.</p>
<p>A glance at Bioventix’s financials reveals a spectacular set of numbers. Over the last three years, revenue has risen from £2.7m to £5.5m, and earnings per share have surged from 30p to 68p, a compound annual growth rate (CAGR) of 31%. Equally impressive have been the company&#8217;s operating margins and return on equity, which last year, were 76% and 42% respectively. Dividend growth of 190% over the last three years has also been recorded. </p>
<p>Interim results in March saw sales rise 32% to £3.1m, and profit before tax increase 49% to £2.5m. Then, in early September, the group upgraded its full-year profit guidance, stating: “<em>Both revenues and profits before tax are expected to be ahead of market expectations for the year ended 30 June 2017.</em>”</p>
<p>So it’s pretty clear, to my mind, that Bioventix has strong momentum at present. Is it too late to jump on board? On consensus FY2017 earnings estimates of 89.3p, it currently trades on a P/E ratio of 32.5. While that valuation is no doubt high, it doesn’t look entirely unreasonable in my view, given the company’s track record and growth prospects.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/10/10/why-this-small-cap-stock-could-be-the-uks-most-exciting-investment-opportunity-right-now/">Why this small-cap stock could be the UK’s most exciting investment opportunity right now</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/07/down-43-with-an-9-dividend-yield-should-i-buy-this-stock/">Down 43% with a 9% dividend yield – should I buy this stock?</a></li></ul><p><em>Edward Sheldon has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Beaten-up recovery stock easyJet plc could make you brilliantly rich</title>
                <link>https://www.twelfthmagpie.com/2017/08/25/beaten-up-recovery-stock-easyjet-plc-could-make-you-brilliantly-rich/</link>
                                <pubDate>Fri, 25 Aug 2017 11:31:45 +0000</pubDate>
                <dc:creator><![CDATA[Peter Stephens]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[easyJet]]></category>
		<category><![CDATA[Nanoco]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=101465</guid>
                                    <description><![CDATA[<p>easyJet plc (LON: EZJ) offers a wide margin of safety right now.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/08/25/beaten-up-recovery-stock-easyjet-plc-could-make-you-brilliantly-rich/">Beaten-up recovery stock easyJet plc could make you brilliantly rich</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<img width="640" height="360" src="https://www.twelfthmagpie.com/wp-content/uploads/2016/10/easyJet.jpg" class="attachment-rss-thumbnail size-rss-thumbnail wp-post-image" alt="easyjet orange plane" style="float:left; margin:0 15px 15px 0;" decoding="async" /><p>In the last three months, the <strong>easyJet</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-ezj/">LSE: EZJ</a>) share price has fallen 12%. Clearly, investor sentiment has weakened, which is not a major surprise given the outlook for the business. In the current year it is forecast to post a decline in its bottom line of 23%. In addition, its CEO recently announced her resignation, which means the stock faces an even more uncertain future.</p>
<p>However, with a wide margin of safety, strong business model and improving income prospects, easyJet could be a star performer in the long run. Alongside another, smaller, recovery stock, it could be worth buying right now.</p>
<h3><strong>Changing outlook</strong></h3>
<p>In the last couple of years, easyJet has faced a difficult set of trading conditions. The fall in fuel prices has cut costs for airlines, but has also meant that competition has increased. As well as this, demand across the industry has declined on terrorism concerns. This has contributed to a fall in sales and is a key reason for the company&#8217;s disappointing 2017 earnings outlook.</p>
<p>However, easyJet&#8217;s 2018 performance could represent a major improvement on that of 2017. It is expected to record a rise in earnings of 20% next year, a large portion of which is due to the company&#8217;s strategy. It has sought to boost capacity and also deliver a firmer load factor in recent quarters. This is in addition to the investment it has made in customer service and a focus on business passengers – both of which have strengthened the company&#8217;s customer base.</p>
<h3><strong>Investment potential</strong></h3>
<p>Despite its upbeat outlook for 2018, the stock trades on a price-to-earnings growth (PEG) ratio of only 0.6. This suggests that its 12% decline of the last three months may only be temporary, since its shares now offer a wide margin of safety.</p>
<p>As well as growth and value appeal, easyJet also remains a top income stock. It has a forward dividend yield of 4%, which is 20 basis points higher than that of the FTSE 100. Since dividend payments are set to be covered more than twice in 2018, there appears to be scope for further dividend growth over the medium term. With inflation moving higher and forecast to rise in future months, easyJet could become an even more attractive stock to own for the long term.</p>
<h3><strong>More recovery potential</strong></h3>
<p>As well as easyJet&#8217;s recovery potential, another company could deliver a turnaround in the long run.  Developer and manufacturer of cadmium-free quantum dots (CFQDs) and other nanomaterials, <strong>Nanoco </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-nano/">LSE: NANO</a>), has recorded a share price decline of 32% in the last three months. In fact, it released a full-year trading update on Friday which sent its share price 6% lower.</p>
<p>While its market is continuing to develop more slowly than originally anticipated, it is nevertheless making good progress with its commercialisation of CFQDs and is anticipating further orders from its pipeline of projects. It has a competitive advantage over rivals due to its market position, and its net cash position means it seems to have the financial strength to deliver improved share price performance in the long run.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/08/25/beaten-up-recovery-stock-easyjet-plc-could-make-you-brilliantly-rich/">Beaten-up recovery stock easyJet plc could make you brilliantly rich</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/30/uk-shares-could-now-be-the-time-to-buy-into-great-companies-at-bargain-prices/">Could now be the time to buy great UK shares at bargain prices?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/22/easyjet-shares-are-up-40-in-a-month-heres-why/">easyJet shares are up 40% in a month. Here’s why</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/20/up-close-to-50-in-a-month-whats-next-for-the-easyjet-share-price/">Up close to 50% in a month, what&#8217;s next for the easyJet share price?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/18/the-easyjet-share-price-is-up-49-in-a-month-what-on-earth-is-going-on/">The easyJet share price is up 49% in a month. What on earth’s going on?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/16/at-5-could-the-easyjet-share-price-still-be-a-long-term-bargain/">At £5, could the easyJet share price still be a long-term bargain?</a></li></ul><p><em>Peter Stephens owns shares of easyJet. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes </em></p>
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                                <title>Should you buy these FTSE surgers and sliders?</title>
                <link>https://www.twelfthmagpie.com/2016/10/11/should-you-buy-these-ftse-surgers-and-sliders/</link>
                                <pubDate>Tue, 11 Oct 2016 11:25:57 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Nanoco]]></category>
		<category><![CDATA[Victrex]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=87328</guid>
                                    <description><![CDATA[<p>Royston Wild takes a look at two London stocks making waves in Tuesday business.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2016/10/11/should-you-buy-these-ftse-surgers-and-sliders/">Should you buy these FTSE surgers and sliders?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>Shares in <strong>Nanoco</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-nano/">LSE: NANO</a>) have taken a pummelling in Tuesday trade, the stock last 10% lower after releasing a less-than-appetising trading update.</p>
<p>The quantum dot specialist advised that full-year revenues for the period to July 2016 slipped 77% to £470,000, a result that caused pre-tax losses to widen to £12.6m from £10.88m a year earlier.</p>
<p>This is the second hefty share price fall in less than seven days, Nanoco advising last week that it had deferred licence fee royalties, with £500,000 to be booked for the year to July 2017 and £700,000 over the following six years.</p>
<p>Regardless of these roadblocks, Nanoco remains confident that its transformed business model should deliver stunning sales growth in the years ahead. The company has inked major contract agreements with the likes of <strong>Merck</strong> and Wah Hong in recent months, for example, assisted by its terrific record of innovation &#8212; Nanoco&#8217;s IP portfolio consisted of 467 patents and patents pending as of July 2016.</p>
<p>And the Mancunian business has stepped up manufacturing capacity to speed up returns from its cutting-edge technology.</p>
<p>These measures should push Nanoco into the black from this year, at least according to City forecasts, and earnings of 1.3p per share are currently forecast.</p>
<p>Value hunters will no doubt be put off by a subsequent P/E rating of 41.9 times, soaring above the benchmark of 15 times broadly considered reasonable value. Still, those seeking stocks with potentially-explosive long-term earnings potential could do a lot worse than to check out Nanoco.</p>
<h3><strong>Too soon?</strong></h3>
<p><strong>Victrex </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-vct/">LSE: VCT</a>) has enjoyed a more pleasant ride so far in Tuesday&#8217;s session, with a mostly-positive trading update pushing investor demand up 7% from last night&#8217;s close. The polymer manufacturer is now dealing at fresh 10-month peaks.</p>
<p>But first the bad news. Victrex said that total revenues slipped 4% to £252.3m in the 12 months to September 2016, with declining demand at its Consumer Electronics unit pressing down on the top line. Yet Victrex has suggested that things are starting to look up, the company advising of &#8220;<em>an improved performance in the second half and a good finish to 2016</em>.&#8221;</p>
<p>Critically the business has seen conditions stabilise in the Oil &amp; Gas division, it noted, while its Aerospace and Automotive arms have also been &#8220;<em>performing well</em>.&#8221; And volumes at Consumer Electronics more than doubled during April-September from the previous six months.</p>
<p>But investors should refrain from breaking out the bunting just yet, Victrex warning that &#8220;<em>our early planning assumption suggests Consumer Electronics volumes will be significantly lower in 2017</em>.&#8221; And of course demand from the fossil fuel sector could also deteriorate again should pressure on oil producers&#8217; capex budgets persist.</p>
<p>The City expects Victrex to register a 7% earnings bounce in fiscal 2017, resulting in a P/E rating of 18.6 times. Considering that the firm&#8217;s core operations aren&#8217;t quite out of the woods, I reckon cautious investors should sit on the sidelines for the time being.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2016/10/11/should-you-buy-these-ftse-surgers-and-sliders/">Should you buy these FTSE surgers and sliders?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/20/with-a-9-5-yield-this-ftse-250-dividend-share-could-climb-up-to-40/">With a 9.5% yield, this FTSE 250 dividend share could climb up to 40%!</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/17/could-a-portfolio-of-dividend-shares-turn-10000-into-20097-in-10-years/">Could a portfolio of dividend shares turn £10,000 into £20,097 in 10 years?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/14/this-dividend-stock-yields-9-8-and-is-potentially-44-3-undervalued/">This dividend stock yields 9.8% and is potentially 44.3% undervalued!</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/10/5-uk-dividend-shares-with-7-yields/">5 UK dividend shares with 7%+ yields</a></li></ul><p><em><a href="https://my.fool.com/profile/Artilleur/info.aspx">Royston Wild</a> has no position in any shares mentioned. The Motley Fool UK has recommended Victrex. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Which tech stock is the best buy following today&#8217;s updates?</title>
                <link>https://www.twelfthmagpie.com/2016/08/08/which-tech-stock-is-the-best-buy-following-todays-updates/</link>
                                <pubDate>Mon, 08 Aug 2016 09:23:48 +0000</pubDate>
                <dc:creator><![CDATA[Peter Stephens]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Nanoco]]></category>
		<category><![CDATA[Telit Communications]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=85279</guid>
                                    <description><![CDATA[<p>Which one of these two tech stocks is ripe for investment?</p>
<p>The post <a href="https://www.twelfthmagpie.com/2016/08/08/which-tech-stock-is-the-best-buy-following-todays-updates/">Which tech stock is the best buy following today&#8217;s updates?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>These two technology companies have both released updates today, but which one is the better buy for Foolish investors?</p>
<h3><strong>Nanoco</strong></h3>
<p><strong>Nanoco&#8217;s</strong> <a href="https://www.twelfthmagpie.com/company/?ticker=lse-nano">(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-nano/">LSE: NANO</a>)</a> full-year trading update has n&#8217;t been well-received by the market. Its shares have fallen by 8% today even though it states in the update that it remains confident of achieving progress in commercialising its technologies.</p>
<p>However, Nanoco&#8217;s sales for the full year were £1.9m, which is down slightly on 2015&#8217;s figure of £2m. Furthermore, its net cash position has fallen to £14m from £18m at the end of January 2016, although all of these figures are in line with the company&#8217;s expectations.</p>
<p>The specialist in the development and manufacture of heavy metal-free quantum dots and semiconductor nanoparticles for use in lighting, displays and solar energy states in today&#8217;s update that it has made strong progress during the year. For example, it has moved to a non-exclusive licence agreement (from an exclusive one) with the Dow Chemical Co. This should allow it to open up additional routes into the display market and bodes well for its long-term future.</p>
<p>In terms of growth prospects, Nanoco is forecast to remain lossmaking in the current year but to move to profitability in the 2017 financial year. This indicates that investor sentiment could improve over the medium term and while it&#8217;s a relatively risky buy, Nanoco has the scope to rapidly rise off the back of further commercial progress with its technology.</p>
<h3><strong>Telit Communications</strong></h3>
<p>Also reporting today was <strong>Telit Communications</strong> (LSE: TCM). Unlike Nanoco, the market has reacted positively to its update, with its shares up by over 6% today. Its sales increased by 6.3% in the first six months of the current financial year, with its internet of things (IoT) sales rising by 23.4%.</p>
<p>This indicates that there&#8217;s significant potential for long-term growth within the IoT space, with Telit&#8217;s ability to provide integrated end-to-end IoT solutions for corporates and enterprises gaining strong traction. New client wins include <strong>SAP</strong> and <strong>Tech Mahindra</strong>, as well as <strong>John Deere</strong>.</p>
<p>Telit remains confident of its second-half performance and expects to report double-digit sales and profit growth for the full year. Its shares trade on a price-to-earnings growth (PEG) ratio of just 0.5, which indicates that they offer strong growth at a very reasonable price.</p>
<p>Of course, Telit&#8217;s cost base continues to rise at a faster pace than sales, with investment in R&amp;D being relatively high. However, it&#8217;s targeting a reduction in operational expenses as a percentage of revenue of 8%-9% by 2018, which has the scope to boost margins and profitability.</p>
<p>As such, Telit seems to be a strong buy for less risk-averse, long-term investors. Its strong sales growth and the fact that it&#8217;s highly profitable make it less riskier than Nanoco, while a clear growth strategy and exposure to the fast-growing IoT space make Telit the better buy of the two companies at the present time.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2016/08/08/which-tech-stock-is-the-best-buy-following-todays-updates/">Which tech stock is the best buy following today&#8217;s updates?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/back-below-500p-is-it-time-to-consider-bp-shares-again/'>Back below 500p, is it time to consider BP shares again?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/is-there-any-value-left-in-lloyds-shares-now-theyre-over-1/'>Is there any value left in Lloyds shares now they’re over £1?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-would-i-need-in-a-stocks-and-shares-isa-to-target-19036-a-year-in-second-income/'>How much would I need in a Stocks and Shares ISA to target £19,036 a year in second income?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/after-huge-new-nuclear-deals-are-rolls-royces-sub-15-shares-set-to-power-higher/'>After huge new nuclear deals, are Rolls-Royce’s sub-£15 shares set to power higher?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/this-7-5-yielding-passive-income-share-is-at-a-13-year-low-time-to-consider-buying/'>This 7.5% yielding passive income share is at a 13-year low! Time to consider buying?</a></li></ul><p><em><a href="https://my.fool.com/profile/XMFstockpicker/info.aspx">Peter Stephens</a> has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>These FTSE-listed giants are grabbing the headlines! Should you buy?</title>
                <link>https://www.twelfthmagpie.com/2016/08/01/these-ftse-listed-giants-are-grabbing-the-headlines-should-you-buy/</link>
                                <pubDate>Mon, 01 Aug 2016 11:44:31 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[FTSE 250]]></category>
		<category><![CDATA[Keller Group]]></category>
		<category><![CDATA[Merck]]></category>
		<category><![CDATA[Nanoco]]></category>
		<category><![CDATA[Senior]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=85055</guid>
                                    <description><![CDATA[<p>Royston Wild looks at three British stocks making news on Monday.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2016/08/01/these-ftse-listed-giants-are-grabbing-the-headlines-should-you-buy/">These FTSE-listed giants are grabbing the headlines! Should you buy?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Nanotechnology specialist <strong>Nanoco</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-nano/">LSE: NANO</a>) was recently dealing 6% higher from Friday&#8217;s close after unveiling a deal with pharmaceuticals and science colossus <strong>Merck</strong>.</p>
<p>The accord will see Merck market Nanoco&#8217;s cadmium-free quantum dot technology, it was announced, with a view to the US giant eventually building its own production facility to meet rising demand for display units using this hardware. Nanoco will receive a licence fee and royalties on Merck&#8217;s sales.</p>
<p>Nanoco&#8217;s share price has exploded since the Brexit referendum, the manufacturer&#8217;s relationship with an array of multinational clients proving the perfect tonic for concerned investors. The stock has risen 85% since the vote, with Monday&#8217;s push taking it to levels not seen since last July.</p>
<p>While Nanoco is expected to remain lossmaking until the close of next year, I believe the Mancunian star&#8217;s expertise in a fast-growing tech segment should underpin explosive earnings growth in the coming years.</p>
<h3><strong>Developing markets drag<br /></strong></h3>
<p>Engineer <strong>Keller Group </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-klr/">LSE: KLR</a>) hasn&#8217;t fared so well in Monday trade, however, the stock last changing hands 11% lower following a disappointing half-year update</p>
<p>Keller announced that revenues hit a record £849.7m between January and June, up 12% year-on-year. But operating profit slipped 6% during the period, to £35.6m, thanks to big losses in its Asia Pacific region.</p>
<p>While in North America and Europe Keller has outperformed, it has said that it expects full-year results to be at the lower end of previous guidance thanks to challenging market conditions across markets such as Australia, Singapore and Malaysia.</p>
<p>Today&#8217;s share price move leaves Keller dealing on a forward P/E rating of 9.4 times, a situation that could see plenty of bargain hunters piling in. But investors should be aware of further share price weakness should emerging market coolness intensify, and patchy economic data in Europe and the US indicates upcoming weakness for its two biggest divisions.</p>
<h3><strong>Hitting turbulence</strong></h3>
<p>Fellow engineer <strong>Senior</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-snr/">LSE: SNR</a>) suffered no such woes on Monday, the stock last dealing 10% higher from last week&#8217;s close.</p>
<p>Senior&#8217;s half-year report released today showed revenues 4% higher, to £450.5m. This couldn&#8217;t stop adjusted pre-tax profit slumping 19% during January-June, however, to £42.3m.</p>
<p>Senior advised that &#8220;<em>business conditions deteriorated in the Flexonics division and resulted in a weak first half as end markets remained challenging with no clear signs of recovery yet visible</em>.&#8221;</p>
<p>Difficulties in the oil and gas segment are likely to keep the pressure on at Flexonics, Senior advised, although the firm&#8217;s bullish take on the aerospace market remains intact. Indeed, the <strong>FTSE 250</strong> play commented that &#8220;<em>the outlook for the large commercial aerospace sector is both strong and visible</em>.&#8221;</p>
<p>Today&#8217;s share price surge leaves Senior on a P/E rating of 14 times for 2016. So while I expect rising aircraft production to deliver splendid long-term gains, the poor condition of Senior&#8217;s other end markets leave plenty of question marks over when earnings will bounce higher again. I reckon cautious investors should sit on the fence for the time being.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2016/08/01/these-ftse-listed-giants-are-grabbing-the-headlines-should-you-buy/">These FTSE-listed giants are grabbing the headlines! Should you buy?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/24/burnham-as-the-next-pm-matters-more-for-the-ftse-250-than-ftse-100-heres-why/">Burnham as the next PM matters more for the FTSE 250 than FTSE 100. Here&#8217;s why&#8230;</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/09/how-to-try-and-turn-an-empty-isa-into-a-6210-second-income-in-the-next-3-years/">How to try and turn an empty ISA into a £6,210 second income in the next 3 years</a></li></ul><p><em><a href="https://my.fool.com/profile/Artilleur/info.aspx">Royston Wild</a> has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Are Banco Santander SA And Nanoco Group PLC Star Buys For 2016?</title>
                <link>https://www.twelfthmagpie.com/2015/12/10/are-banco-santander-sa-and-nanoco-group-plc-star-buys-for-2016/</link>
                                <pubDate>Thu, 10 Dec 2015 12:52:24 +0000</pubDate>
                <dc:creator><![CDATA[Peter Stephens]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Banco Santander]]></category>
		<category><![CDATA[Banking]]></category>
		<category><![CDATA[Nanoco]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=73732</guid>
                                    <description><![CDATA[<p>Should you pile into Banco Santander SA (LON: BNC) and Nanoco Group PLC (LON: NANO)?</p>
<p>The post <a href="https://www.twelfthmagpie.com/2015/12/10/are-banco-santander-sa-and-nanoco-group-plc-star-buys-for-2016/">Are Banco Santander SA And Nanoco Group PLC Star Buys For 2016?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Shares in cadmium-free quantum dots and other nano-materials developer <strong>Nanoco</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-nano/">LSE: NANO</a>) have been given a boost today by a positive trading update. In fact, they&#8217;re 15% higher due to the release of an upbeat statement that will be delivered by the company&#8217;s Chairman at today&#8217;s AGM.</p>
<p>What&#8217;s his headline news? 2016 is set to be a landmark year for the business.</p>
<h3>Watch&#8230; and wait</h3>
<p>Part of the reason for this is a speeding up of the planned transfer of production from the UK to South Korea. A recent trip to the plant indicated that Nanoco will be ready to supply material to meet potential customers&#8217; commercial requirements in the first quarter of 2016.</p>
<p>Nanoco&#8217;s newly formed lighting division is making impressive progress too, including the launch of four LED-based product groups as well as the potential for phototherapy products for the cosmetic treatment of skin.</p>
<p>Looking ahead, Nanoco is expected to remain lossmaking in the current financial year, but it clearly has significant long term potential. And while it has a relatively strong balance sheet and the potential for more positive news flow, it may be prudent to wait for further evidence that it&#8217;s moving towards becoming a profitable business. So it could be a stock worth watching rather than buying for now.</p>
<h3>UK 1, Brazil 0</h3>
<p>One stock that appears to be worth buying for the long term is <strong>Santander</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-bnc/">LSE: BNC</a>). Its financial performance is being dragged down at the moment by an uncertain macroeconomic outlook for the Brazilian economy, which remains a key market for Santander. With the situation looking unlikely to drastically improve in 2016, Santander&#8217;s performance in the near term could be somewhat disappointing.</p>
<p>But for long term investors there&#8217;s an opportunity to buy a major global bank for a relatively low price. In fact, Santander&#8217;s shares have fallen in value by 50% in the last five years and this leaves them trading on a price to earnings (P/E) ratio of just 9.6. This indicates that there&#8217;s limited downside – especially with the bank being forecast to report positive earnings growth in both the current year and next year.</p>
<p>Looking ahead, Santander&#8217;s position as a global player is likely to smooth out the problems in key markets such as Brazil. With the bank having an increasing reliance on the UK economy, the lack of monetary policy tightening expected for 2016 should help to offset Brazilian weakness. Meanwhile a fundraising conducted in 2014 has strengthened its capital position and should ensure that it remains a relatively resilient operation, even if the outlook for the global economy deteriorates.</p>
<p>Additionally, Santander is now becoming an increasingly appealing income stock. Although dividends were slashed in recent years in order to improve the bank&#8217;s financial outlook, shareholder payouts are now covered 2.5 times by profit and this indicates that they&#8217;re highly sustainable. And with Santander having a yield of 4.1% it could become increasingly popular in 2016 and beyond – especially with it trading on such a low valuation.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2015/12/10/are-banco-santander-sa-and-nanoco-group-plc-star-buys-for-2016/">Are Banco Santander SA And Nanoco Group PLC Star Buys For 2016?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/back-below-500p-is-it-time-to-consider-bp-shares-again/'>Back below 500p, is it time to consider BP shares again?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/is-there-any-value-left-in-lloyds-shares-now-theyre-over-1/'>Is there any value left in Lloyds shares now they’re over £1?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-would-i-need-in-a-stocks-and-shares-isa-to-target-19036-a-year-in-second-income/'>How much would I need in a Stocks and Shares ISA to target £19,036 a year in second income?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/after-huge-new-nuclear-deals-are-rolls-royces-sub-15-shares-set-to-power-higher/'>After huge new nuclear deals, are Rolls-Royce’s sub-£15 shares set to power higher?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/this-7-5-yielding-passive-income-share-is-at-a-13-year-low-time-to-consider-buying/'>This 7.5% yielding passive income share is at a 13-year low! Time to consider buying?</a></li></ul><p><em><a href="https://my.fool.com/profile/XMFstockpicker/info.aspx">Peter Stephens</a> has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Is Now The Perfect Time To Buy ARM Holdings plc, Adgorithms Ltd And Nanoco Group PLC?</title>
                <link>https://www.twelfthmagpie.com/2015/10/09/is-now-the-perfect-time-to-buy-arm-holdings-plc-adgorithms-ltd-and-nanoco-group-plc/</link>
                                <pubDate>Fri, 09 Oct 2015 08:59:16 +0000</pubDate>
                <dc:creator><![CDATA[Peter Stephens]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Adgorithms]]></category>
		<category><![CDATA[ARM Holdings]]></category>
		<category><![CDATA[Nanoco]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=71254</guid>
                                    <description><![CDATA[<p>Could these 3 stocks boost your returns? ARM Holdings plc (LON: ARM), Adgorithms Ltd (LON: ADGO) and Nanoco Group PLC (LON: NANO)</p>
<p>The post <a href="https://www.twelfthmagpie.com/2015/10/09/is-now-the-perfect-time-to-buy-arm-holdings-plc-adgorithms-ltd-and-nanoco-group-plc/">Is Now The Perfect Time To Buy ARM Holdings plc, Adgorithms Ltd And Nanoco Group PLC?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Shares in advertising software business <strong>Adgorithms</strong> (LSE: ADGO) have fallen by over 60% today after the company released a profit warning. It said that the online advertising marketplace has experienced severe disruption which has resulted in a loss of supply for major online advertising exchanges, as well as a reduction in demand from major media buyers.</p>
<p>The effect of this on Adgorithms&#8217; indirect revenue generation is due to be substantial and, looking ahead, is expected to continue in the short run. As such, its profit for the full-year is now due to be well below previous market expectations, thereby severely hurting investor sentiment in the stock.</p>
<p>In the longer term, Adgorithms still appears to have a bright future, with its SaaS solution still likely to benefit from improving demand. And, with the company reporting today that it is beginning to see traction with its SaaS platform, its strong pipeline of opportunities has the potential to be turned into profitable contracts.</p>
<p>Certainly, Adgorithms has potential in the long run but, in the coming weeks its share price could come under further pressure if, as expected, the challenges it is currently facing continue to persist. As such, it is a stock to watch, rather than buy, at the present time.</p>
<p>The same appears to be true for LCD screen specialist <strong>Nanoco</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-nano/">LSE: NANO</a>). It has a highly appealing product which, as regulations surrounding the use of heavy metals in screens increases, could grab a larger market share. However, it has been loss-making in each of the last four years, with pretax losses widening during that period.</p>
<p>Of course, Nanoco is expected to deliver a profit next year and, while this may cause investor sentiment to improve somewhat, its move from red to black (regarding its bottom line) already seems to be priced in. For example, Nanoco trades on a forward price to earnings (P/E) ratio of 37. Even for a high quality business with an exciting future, this seems relatively high, although should it deliver on its profit guidance then it may be worth buying further down the line.</p>
<p>One stock which does appear to be a buy right now is <strong>ARM</strong> (LSE: ARM). Its business model is hugely appealing, since it focuses on intellectual property rather than manufacturing and this allows it to be at the forefront of technological advances while retaining a relatively capex-light business model.</p>
<p>As such, its profitability continues to be exceptionally high, with its return on equity reaching almost 20% last year despite it being a mature company with a debt-free balance sheet. And, with its shares trading on a price to earnings growth (PEG) ratio of just 1.6, it seem to offer growth at a reasonable price. Furthermore, unlike a number of its technology sector peers, ARM is a relatively reliable growth stock, thereby offering a high return/lower risk profile for long term investors.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2015/10/09/is-now-the-perfect-time-to-buy-arm-holdings-plc-adgorithms-ltd-and-nanoco-group-plc/">Is Now The Perfect Time To Buy ARM Holdings plc, Adgorithms Ltd And Nanoco Group PLC?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/back-below-500p-is-it-time-to-consider-bp-shares-again/'>Back below 500p, is it time to consider BP shares again?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/is-there-any-value-left-in-lloyds-shares-now-theyre-over-1/'>Is there any value left in Lloyds shares now they’re over £1?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-would-i-need-in-a-stocks-and-shares-isa-to-target-19036-a-year-in-second-income/'>How much would I need in a Stocks and Shares ISA to target £19,036 a year in second income?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/after-huge-new-nuclear-deals-are-rolls-royces-sub-15-shares-set-to-power-higher/'>After huge new nuclear deals, are Rolls-Royce’s sub-£15 shares set to power higher?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/this-7-5-yielding-passive-income-share-is-at-a-13-year-low-time-to-consider-buying/'>This 7.5% yielding passive income share is at a 13-year low! Time to consider buying?</a></li></ul><p><em><a href="https://my.fool.com/profile/XMFstockpicker/info.aspx">Peter Stephens</a> has no position in any shares mentioned. The Motley Fool UK has recommended ARM Holdings. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Should You Avoid ARM Holdings plc And Buy Sepura Plc And Nanoco Group PLC?</title>
                <link>https://www.twelfthmagpie.com/2015/07/08/should-you-avoid-arm-holdings-plc-and-buy-sepura-plc-and-nanoco-group-plc/</link>
                                <pubDate>Wed, 08 Jul 2015 10:39:46 +0000</pubDate>
                <dc:creator><![CDATA[Peter Stephens]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[ARM Holdings]]></category>
		<category><![CDATA[Nanoco]]></category>
		<category><![CDATA[Sepura]]></category>
		<category><![CDATA[Technology]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=67422</guid>
                                    <description><![CDATA[<p>Is it time to switch from ARM Holdings plc (LON: ARM) and into sector peers Sepura Plc (LON: SEPU) and Nanoco Group PLC (LON: NANO)?</p>
<p>The post <a href="https://www.twelfthmagpie.com/2015/07/08/should-you-avoid-arm-holdings-plc-and-buy-sepura-plc-and-nanoco-group-plc/">Should You Avoid ARM Holdings plc And Buy Sepura Plc And Nanoco Group PLC?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>2015 has been a rather disappointing year for investors in <strong>ARM</strong> (LSE: ARM) (NASDAQ: ARMH.US), with the intellectual property specialist seeing its share price rise by just 3%. Certainly, that is a better performance than the FTSE 100, which has seen its value decline by 1% in the same time period. However, when you consider how strong ARM&#8217;s financial performance is expected to be this year, it is somewhat surprising.</p>
<h3><strong>Growth Stock</strong></h3>
<p>In fact, doubts surrounding ARM&#8217;s status as a growth company are set to be kicked into touch this year, with the company forecast to grow its earnings by 29%. And, looking ahead to next year, further growth of 20% is being pencilled in and this means that ARM&#8217;s earnings could be as much as 55% higher in 2016 than they were in 2014. That&#8217;s a stunning rate of growth and shows that, while ARM is becoming a more mature company and appears to offer greater stability than was the case a handful of years ago, it remains a top quality growth stock. Furthermore, it should see investor sentiment improve due to a fast-growing bottom being likely to act as a positive catalyst moving forward.</p>
<h3><strong>Other Options</strong></h3>
<p>Of course, there are other options within the UK technology sector. For instance, <strong>Sepura</strong> (LSE: SEPU) has seen its shares rise by an impressive 12% since the turn of the year, with the radio design specialist set to post strong growth numbers following an impressive performance in recent years. In fact, Sepura has managed to grow its earnings at an annualised rate of 31% during the last four years, which compares favourably to ARM&#8217;s annualised growth rate of 18% during the same time period.</p>
<p>And, looking ahead, Sepura is expected to post earnings growth of 8% this year and 18% next year which, while lower than ARM&#8217;s growth rate, could still push the company&#8217;s share price higher. That&#8217;s because, while ARM trades on a price to earnings growth (PEG) ratio of 1.4, Sepura has a PEG ratio of just 0.8, which indicates that its shares could continue to outperform those of ARM over the medium to long term.</p>
<h3><strong>Turnaround Potential</strong></h3>
<p>Meanwhile, sector peer, <strong>Nanoco</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-nano/">LSE: NANO</a>), could begin to reverse the challenging year that it has endured in 2015. That&#8217;s because the display and lighting specialist is forecast to move from loss into profit next year following a number of years of a red bottom line. And, while it trades on a forward price to earnings (P/E) ratio of 51, investor sentiment could improve significantly and help to reverse the 42% share price fall that has occurred during the course of the current year. Clearly, though, Nanoco offers less value and higher risk than either ARM or Sepura, owing to its lack of profitability and the fact that investor sentiment has been weak in recent months.</p>
<h3><strong>Looking Ahead</strong></h3>
<p>ARM appears to have a very bright future and seems to be well-worth buying at the present time. It has an excellent track record of growth, offers good value for money and is likely to outperform the wider index over the medium to long term. However, with its superior past performance and more appealing valuation, Sepura could continue to beat ARM in 2015 and beyond, thereby making it a more appealing buy at the present time.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2015/07/08/should-you-avoid-arm-holdings-plc-and-buy-sepura-plc-and-nanoco-group-plc/">Should You Avoid ARM Holdings plc And Buy Sepura Plc And Nanoco Group PLC?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/back-below-500p-is-it-time-to-consider-bp-shares-again/'>Back below 500p, is it time to consider BP shares again?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/is-there-any-value-left-in-lloyds-shares-now-theyre-over-1/'>Is there any value left in Lloyds shares now they’re over £1?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-would-i-need-in-a-stocks-and-shares-isa-to-target-19036-a-year-in-second-income/'>How much would I need in a Stocks and Shares ISA to target £19,036 a year in second income?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/after-huge-new-nuclear-deals-are-rolls-royces-sub-15-shares-set-to-power-higher/'>After huge new nuclear deals, are Rolls-Royce’s sub-£15 shares set to power higher?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/this-7-5-yielding-passive-income-share-is-at-a-13-year-low-time-to-consider-buying/'>This 7.5% yielding passive income share is at a 13-year low! Time to consider buying?</a></li></ul><p><em><a href="https://my.fool.com/profile/XMFstockpicker/info.aspx">Peter Stephens</a> has no position in any shares mentioned. The Motley Fool UK has recommended ARM Holdings. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>5 Of The Market&#8217;s Most Hated Companies: WM Morrison Supermarkets PLC, J Sainsbury plc, Greene King plc, Nanoco Group PLC And Ocado Group PLC</title>
                <link>https://www.twelfthmagpie.com/2015/01/29/5-of-the-markets-most-hated-companies-wm-morrison-supermarkets-plc-j-sainsbury-plc-greene-king-plc-nanoco-group-plc-and-ocado-group-plc/</link>
                                <pubDate>Thu, 29 Jan 2015 10:06:34 +0000</pubDate>
                <dc:creator><![CDATA[Rupert Hargreaves]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Greene King]]></category>
		<category><![CDATA[Morrisons]]></category>
		<category><![CDATA[Nanoco]]></category>
		<category><![CDATA[Ocado]]></category>
		<category><![CDATA[Sainsbury's]]></category>
		<category><![CDATA[Supermarkets]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=61196</guid>
                                    <description><![CDATA[<p>WM Morrison Supermarkets PLC (LON: MRW), J Sainsbury plc (LON: SBRY), Greene King plc (LON: GNK), Nanoco Group PLC (LON: NANO) and Ocado Group PLC (LON: OCDO) are some of the markets most hated companies. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2015/01/29/5-of-the-markets-most-hated-companies-wm-morrison-supermarkets-plc-j-sainsbury-plc-greene-king-plc-nanoco-group-plc-and-ocado-group-plc/">5 Of The Market&#8217;s Most Hated Companies: WM Morrison Supermarkets PLC, J Sainsbury plc, Greene King plc, Nanoco Group PLC And Ocado Group PLC</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>Every day the Financial Conduct Authority publishes a list of all short positions in UK listed companies that have been disclosed. This is a helpful list, as it helps investors track shorts in stocks and gain from the advantages that can be achieved from this valuable market data.</p>
<p>Of course, this daily report is only designed for information purposes and is not supposed to be an indicator of past, present or future performance. Still, it&#8217;s interesting to see which companies investors are betting against the most.</p>
<h3><strong>High valuation </strong></h3>
<p>Right at the top of the list, with 10.6% of its shares out on loan is <strong>Sainsbury&#8217;s</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-sbry/">LSE: SBRY</a>).</p>
<p>Sainsbury&#8217;s has been dragged into the UK supermarket price war, and it is looks as if investors believe that the retailer won&#8217;t be able to hold its ground against the discounters. </p>
<p>But unlike other companies in this piece, Sainsbury&#8217;s is not overvalued and there are few obvious reasons why short sellers would want to target the company. Indeed, Sainsbury&#8217;s currently trades at a forward P/E of 10.6, offers a yield of 4.7% and trades 20% below its net asset value. On this basis, for the time being there seems to be no obvious reason to avoid Sainsbury&#8217;s. </p>
<p>On the other hand, it might make sense for investors to avoid <strong>Morrison Supermarkets</strong> (LSE: MRW). 9.2% of Morrisons&#8217; shares are out on loan to short sellers. </p>
<p>It seems as if traders are betting that the Morrisons&#8217; valuation will fall back in line to that of its peers. There are also concerns that the group&#8217;s new management could cut the lofty dividend payout. </p>
<p>Morrisons currently trades at a forward P/E of 15.6 and offers a dividend yield of 6.3%, compared to the sector average valuation of 10 times forward earnings and average yield of 4.8%. </p>
<h3><strong>Law Change </strong></h3>
<p>Pub operator <strong>Greene King</strong> (LSE: GNK) is currently trying to acquire the <strong>Spirit Pub Company</strong>, which has agreed to a £774m takeover offer from its larger peer.</p>
<p>However, the two pub chains have not yet sealed the deal, and with 9.9% of Greene King&#8217;s shares out on loan to short sellers it seems as if many investors believe that the deal will fall through. The recent move by MPs to end the pub/beer tie appears to be the reason behind this view.</p>
<p>What&#8217;s more, Greene King currently trades at a premium valuation of nearly 14 times forward earnings, even though the group&#8217;s earnings at set to fall this year. </p>
<h3><strong>Impossible to value </strong></h3>
<p>Traders have long been sceptical of<strong> Nanoco&#8217;s</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-nano/">LSE: NANO</a>) prospects. At present around 7.9% of the company&#8217;s shares are out on loan to short sellers and it&#8217;s easy to see why. </p>
<p>At current prices Nanoco has a market capitalisation of £250m, even though the company is not making a profit and has only £18.5m of assets, according to its 2014 annual report.</p>
<p>Further, according to City forecasts Nanoco is not expected to report a profit until 2016. A profit of £4.2m is expected for 2016, earnings per share of 1.7p. These figures indicate that Nanoco is trading at a 2016 P/E of 55, a lofty valuation, which leaves little room for error. A major investor has also been reducing their stake in the quantum dot producer. </p>
<h3><strong>Continues to disappoint</strong></h3>
<p>Traders have sold short 6.3% of<strong> Ocado&#8217;s</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-ocdo/">LSE: OCDO</a>) shares, as they believe that the company will continue to disappoint, despite its high valuation. </p>
<p>For example, Ocado currently trades at a forward P/E of 115.8, which does look cheap when compared to the company&#8217;s projected growth rate &#8212; City analysts believe Ocado&#8217;s earnings per share will expand 155% this year. </p>
<p>Nevertheless, Ocado has a history of missing forecast after forecast, and it would appear as if traders are betting that the company will fail to targets once again next year.  If the company does indeed fail to meet these lofty growth targets then its shares will fall rapidly back to earth. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2015/01/29/5-of-the-markets-most-hated-companies-wm-morrison-supermarkets-plc-j-sainsbury-plc-greene-king-plc-nanoco-group-plc-and-ocado-group-plc/">5 Of The Market&#8217;s Most Hated Companies: WM Morrison Supermarkets PLC, J Sainsbury plc, Greene King plc, Nanoco Group PLC And Ocado Group PLC</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/30/here-are-2-ftse-shares-im-excited-about-this-july-and-1-im-avoiding/">Here are  2 FTSE shares I&#8217;m excited about this July &#8212; and 1 I&#8217;m avoiding</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/23/can-anything-save-the-ocado-share-price/">Can anything save the Ocado share price?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/14/how-much-is-needed-in-a-stocks-and-shares-isa-to-aim-to-retire-on-12548-a-year/">How much is needed in a Stocks and Shares ISA to aim to retire on £12,548 a year?</a></li></ul><p><em><a href="https://my.fool.com/profile/RupertHargreav/info.aspx">Rupert Hargreaves</a> has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>As Nanoco Group PLC Plunges, Is It Time To Cut And Run?</title>
                <link>https://www.twelfthmagpie.com/2015/01/06/as-nanoco-group-plc-plunges-is-it-time-to-cut-and-run/</link>
                                <pubDate>Tue, 06 Jan 2015 10:00:10 +0000</pubDate>
                <dc:creator><![CDATA[Rupert Hargreaves]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Nanoco]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=60102</guid>
                                    <description><![CDATA[<p>As Nanoco Group PLC (LON: NANO) falls, should turn your back on the company? </p>
<p>The post <a href="https://www.twelfthmagpie.com/2015/01/06/as-nanoco-group-plc-plunges-is-it-time-to-cut-and-run/">As Nanoco Group PLC Plunges, Is It Time To Cut And Run?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>The year hasn&#8217;t started well for<strong> Nanoco Group</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-nano/">LSE: NANO</a>). The company&#8217;s shares slumped nearly 20% in early trade this morning, as a major investor sold some shares in the quantum dot producer.</p>
<p>Moreover, today&#8217;s declines have been compounded by the fact that around 7% of Nanoco&#8217;s shares are out on loan to short sellers. This means that Nanoco is one of the most shorted shares traded in London, although it&#8217;s easy to see why. </p>
<p>At current prices Nanoco has a market capitalisation of £250m, even though the company is not making a profit and has only £18.5m of assets, according to its 2014 annual report.</p>
<p>What&#8217;s more, according to City analysts the group is not expected to report a profit until 2016. A profit of £4.2m is expected for 2016, earnings per share of 1.7p. These figures indicate that Nanoco is trading at a 2016 P/E of 85.3, a lofty valuation, which leaves little room for error.</p>
<p>Unfortunately, the company has already missed City forecasts several times over the past few years. If Nanoco fails to meet the market&#8217;s lofty expectations then the company&#8217;s shares could fall rapidly back to earth. </p>
<h3><strong>Time to sell?</strong></h3>
<p>Nanoco&#8217;s high valuation is concerning but is it a reason to sell? Well, 2015 promises to be a transformative year for Nanoco as the company works on its joint venture with <strong>The Dow Chemical Co</strong>.</p>
<p>In September, Dow said it would start construction on the first large-scale, cadmium-free quantum-dot manufacturing plant in the world in South Korea. Commercial production of Nanoco quantum dots at the plant is set to start this year.</p>
<p>However, this joint-venture agreement was originally signed with Dow in January 2013, with production slated to start during 2014. So, even though progress is now being made on the project, I wouldn&#8217;t rule out further delays. </p>
<p>Additionally, even though Nanoco is currently producing quantum dots from its production facility in Runcorn, in order to meet demand from customers ahead of the Dow plant coming on-line, the group is at risk of running out of cash. Specifically, Nanoco&#8217;s preliminary results for the year ended 31 July 2014 show that the group used £7m in cash to finance operations and capital spending during the period, on revenue of around £1.5m. The cash outflow was financed with the issue of new equity. </p>
<p>Still, while it looks as if Nanoco might have to raise more cash to stay in business, if production at the Dow plant begins on time, Nanoco could avoid a cash call. </p>
<h3><strong>Not all bad news </strong></h3>
<p>It&#8217;s not all bad news, however. Nanoco worked hard last year to sign contracts for screen development with a number of display makers from South Korea, Japan, United States, China and Taiwan for televisions, monitors and tablets. So, things could be about to change for the company.</p>
<p>Nevertheless, until the group can show some solid progress by generating a profit, the market will remain sceptical and that lofty valuation is concerning. So overall, the company remains a risky bet and may not be suitable for all investors&#8217; portfolios.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2015/01/06/as-nanoco-group-plc-plunges-is-it-time-to-cut-and-run/">As Nanoco Group PLC Plunges, Is It Time To Cut And Run?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/back-below-500p-is-it-time-to-consider-bp-shares-again/'>Back below 500p, is it time to consider BP shares again?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/is-there-any-value-left-in-lloyds-shares-now-theyre-over-1/'>Is there any value left in Lloyds shares now they’re over £1?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-would-i-need-in-a-stocks-and-shares-isa-to-target-19036-a-year-in-second-income/'>How much would I need in a Stocks and Shares ISA to target £19,036 a year in second income?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/after-huge-new-nuclear-deals-are-rolls-royces-sub-15-shares-set-to-power-higher/'>After huge new nuclear deals, are Rolls-Royce’s sub-£15 shares set to power higher?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/this-7-5-yielding-passive-income-share-is-at-a-13-year-low-time-to-consider-buying/'>This 7.5% yielding passive income share is at a 13-year low! Time to consider buying?</a></li></ul><p><em><a href="https://my.fool.com/profile/RupertHargreav/info.aspx">Rupert Hargreaves</a> has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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