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        <title>porvair News | The Twelfth Magpie</title>
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	<title>porvair News | The Twelfth Magpie</title>
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                                <title>Have £5,000 to invest? I&#8217;d buy this FTSE 100 growth stock</title>
                <link>https://www.twelfthmagpie.com/2019/06/24/have-5000-to-invest-id-buy-this-ftse-100-growth-stock/</link>
                                <pubDate>Mon, 24 Jun 2019 11:44:25 +0000</pubDate>
                <dc:creator><![CDATA[Roland Head]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Bunzl]]></category>
		<category><![CDATA[porvair]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=129284</guid>
                                    <description><![CDATA[<p>Now could be the right time to buy this FTSE 100 (INDEXFTSE: UKX) dividend growth play, says Roland Head.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2019/06/24/have-5000-to-invest-id-buy-this-ftse-100-growth-stock/">Have £5,000 to invest? I&#8217;d buy this FTSE 100 growth stock</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>It&#8217;s said elephants can&#8217;t gallop. But shares in the FTSE 100 stock I&#8217;m going to look at today have doubled since January 2013. Its profits have trodden a similar path.</p>
<p>The company is <strong>Bunzl </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-bnzl/">LSE: BNZL</a>), which supplies consumable items such as food packaging, cleaning materials and personal protection equipment to thousands of customers all over the world.</p>
<p>I view this firm as boring-but-brilliant. No one gets excited when you tell them about it. But, in my view, the firm&#8217;s financial performance over the last decade or so has been deeply impressive.</p>
<h2>Why buy today?</h2>
<p>This defensive business has often looked expensive to me in recent years. But the BNZL share price has fallen by 16% since the middle of April, when the firm warned sales growth in North America slowed to 1% during the first quarter of 2019.</p>
<p>Analysts&#8217; trimmed their profit forecasts in response to this cautious message. Bunzl&#8217;s adjusted earnings are now expected to be broadly unchanged in 2019, compared to last year. However, this group remains highly profitable, with a return on capital employed of 14% last year.</p>
<p>Growth opportunities remain too. The group has a proven model for expansion by buying small &#8216;mom and pop&#8217; companies operating in its markets. Integrating these small businesses into the Bunzl machine usually generates cost savings and new sales opportunities.</p>
<p>I feel confident this business will continue to perform well, even if growth does slow. The stock now trades on 16 times 2019 forecast earnings, with a 2.5% dividend yield. That&#8217;s the cheapest I&#8217;ve seen Bunzl for a while. For buy-and-hold investors, I feel <a href="https://www.twelfthmagpie.com/investing/2019/05/26/2-overlooked-ftse-100-dividend-growth-shares-id-buy-in-a-stocks-and-shares-isa/">this could be a good chance</a> to add some shares.</p>
<h2>The next Bunzl?</h2>
<p>With a market-cap of £7.2bn, Bunzl is now quite large. I suspect future growth <em>will</em> be slower than in recent years.</p>
<p>To maximise your returns, you might prefer to invest in a smaller business with similar characteristics, but more <a href="https://www.twelfthmagpie.com/investing/2019/02/25/3-top-and-cheap-growth-stocks-id-buy-right-now/">room for growth</a>. If so, one company I&#8217;d consider is <strong>Porvair </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-prv/">LSE: PRV</a>).</p>
<p>This £267m firm makes specialist filtration products for the aerospace, energy and industrial markets. Many of the company&#8217;s products are consumable and have few substitutes, providing reliable streams of repeat income.</p>
<p>Publishing its accounts for the six months to 31 May today, they suggest the strong performance we&#8217;ve seen in recent years is continuing in 2019.</p>
<p>Revenue rose by 21% to £72m during the half year. Pre-tax profit was 41% higher, at £7.4m, while the interim dividend was lifted 6% to 1.7p per share. Porvair&#8217;s operating profit margin remained stable at just over 10% &#8212; a good figure, if not outstanding.</p>
<h2>The right time to buy?</h2>
<p>I&#8217;ve got mixed feelings about whether I&#8217;d buy Porvair shares at 582p, the price at the time of writing. Although I believe this is an excellent business with good long-term prospects, analysts&#8217; forecasts suggest earnings are only expected to rise by 7.4% in 2019, and by 5.6% in 2020.</p>
<p>That&#8217;s not a problem in itself, but it does make me question whether the stock&#8217;s valuation at 23 times 2019 forecast earnings may be high enough, for now. As a value investor, I&#8217;d rather buy this stock during a market downturn, when I might be able to lock in a more attractive valuation.</p>
<p>However, if I was an existing shareholder, I would certainly sit tight after today&#8217;s strong results.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2019/06/24/have-5000-to-invest-id-buy-this-ftse-100-growth-stock/">Have £5,000 to invest? I&#8217;d buy this FTSE 100 growth stock</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/up-27-1-in-6-months-a-ftse-100-share-paying-out-2-8-a-year/">Up 27.1% in 6 months: a FTSE 100 share paying out 2.8% a year!</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/29/how-do-the-governments-latest-changes-affect-your-stocks-and-shares-isa/">How do the government&#8217;s latest changes affect your Stocks and Shares ISA?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/20/forget-the-ai-hype-uk-stocks-offer-tangible-returns-at-bargain-prices/">Forget the AI hype! UK stocks offer tangible returns at bargain prices</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/15/why-boring-is-often-best-when-it-comes-to-buying-stocks/">Why boring is often best when it comes to buying stocks</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/08/this-beaten-down-uk-growth-share-is-a-dividend-investors-dream/">This beaten-down UK growth share is also a dividend investor’s dream</a></li></ul><p><em><a href="https://boards.fool.com/profile/sopavest/info.aspx">Roland Head</a> has no position in any of the shares mentioned. The Motley Fool UK owns shares of Porvair. 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>Why I think the Santander share price is a buy</title>
                <link>https://www.twelfthmagpie.com/2019/01/28/why-i-think-the-santander-share-price-is-a-buy/</link>
                                <pubDate>Mon, 28 Jan 2019 13:50:30 +0000</pubDate>
                <dc:creator><![CDATA[Peter Stephens]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Banco Santander]]></category>
		<category><![CDATA[porvair]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=122234</guid>
                                    <description><![CDATA[<p>Banco Santander SA (LON: BNC) could offer growth potential at a low share price.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2019/01/28/why-i-think-the-santander-share-price-is-a-buy/">Why I think the Santander share price is a buy</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>With the stock market having experienced a period of weakness over recent months, it&#8217;s perhaps easier now to unearth cheap shares. After all, stock prices are generally lower, and this could mean there are wider margins of safety on offer.</p>
<p>That appears to be the case with <strong>Santander</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-bnc/">LSE: BNC</a>). The global banking stock has recorded a 28% decline in its share price in the last year, which suggests that investors are pricing in the impact of potential risks facing the business.</p>
<p>With an impressive growth outlook, it could generate high returns. That’s not the case with all stocks, though, as evidenced by what appears to be an overpriced smaller company which released an update on Monday.</p>
<h2><strong>High valuation</strong></h2>
<p>The company in question is specialist filtration and environment technology business <strong>Porvair</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-prv/">LSE: PRV</a>). It released results for the year to 30 November 2018, delivering record revenue of £128.8m, an 11% increase on the previous year. Profit before tax increased £0.3m to £12m, while adjusted basic earnings per share grew 11% to 22.9p.</p>
<p>The company also reports it has a healthy order book, while acquisitions such as Rohasys BV and Keystone Filter have been integrated and are performing well. Such acquisitions have expanded its capabilities in industrial and laboratory markets, and could positively impact on its financial outlook.</p>
<p>However, with Porvair expected to post a rise in earnings of 5% in the current year, its price-to-earnings (P/E) ratio of 22 suggests it&#8217;s significantly overpriced. That’s especially the case while a number of other shares trade on low valuations following the stock market pullback of recent months. As such, it seems to be a stock to avoid.</p>
<h2><strong>Margin of safety</strong></h2>
<p>With the world economy having an uncertain outlook, now could be a good time to consider the investment prospects of Santander. Certainly, after its poor share price performance over the last year, it may experience continued paper losses in the short run. Risks, such as a rising US interest rate, slowing China growth and the potential for a global trade war, could hurt its financial prospects to a significant degree. But its share price now seems to offer an equally significant margin of safety.</p>
<p>For example, Santander has a P/E ratio of around 7. This suggests that investors may have priced in <a href="https://www.twelfthmagpie.com/investing/2018/11/22/a-challenger-bank-id-buy-to-beat-the-santander-share-price/">challenges</a> for the world economy that may not materialise over the medium term. Its dividend yield of 6.2% appears to be very affordable given its earnings forecasts, due to be covered 2.3 times by profit in the current year. And with its bottom line expected to rise by 9% this year, its strategy appears to be working well.</p>
<p>With the world economy forecast to grow by 3.5% in 2019, Santander’s shares could be a surprisingly sound recovery option. With a low valuation, income potential and a bright earnings outlook, the stock may be underrated by investors at the present time.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2019/01/28/why-i-think-the-santander-share-price-is-a-buy/">Why I think the Santander share price is a 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/2026/06/20/forget-the-ai-hype-uk-stocks-offer-tangible-returns-at-bargain-prices/">Forget the AI hype! UK stocks offer tangible returns at bargain prices</a></li></ul><p><em><a href="https://boards.fool.com/profile/XMFstockpicker/info.aspx">Peter Stephens</a> has no position in any of the shares mentioned. The Motley Fool UK owns shares of Porvair. 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>Glencore is a FTSE 100 dividend share yielding 5% that’s absurdly cheap right now</title>
                <link>https://www.twelfthmagpie.com/2018/09/18/glencore-is-a-ftse-100-dividend-share-yielding-5-thats-absurdly-cheap-right-now/</link>
                                <pubDate>Tue, 18 Sep 2018 11:59:43 +0000</pubDate>
                <dc:creator><![CDATA[Peter Stephens]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[FTSE 100]]></category>
		<category><![CDATA[Glencore]]></category>
		<category><![CDATA[porvair]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=116765</guid>
                                    <description><![CDATA[<p>The prospects for Glencore plc (LON: GLEN) appear to be more impressive than those of the FTSE 100 (INDEXFTSE: UKX).</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/09/18/glencore-is-a-ftse-100-dividend-share-yielding-5-thats-absurdly-cheap-right-now/">Glencore is a FTSE 100 dividend share yielding 5% that’s absurdly cheap right now</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>The outlook for <strong>Glencore</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-glen/">LSE: GLEN</a>) continues to improve. The company has been able to put in place a refreshed strategy in the last few years which has strengthened its financial standing. It also has the potential to benefit from a tailwind in the resources sector, with world economic growth expected to remain high over the medium term.</p>
<p>Despite this, the stock has a relatively low valuation. This could make it more appealing than the FTSE 100, as well as a number of other shares that seem to now lack margins of safety. One example of such a stock released an investor update on Tuesday.</p>
<h3><strong>High valuation</strong></h3>
<p>The company in question is specialist filtration and environmental technologies company <strong>Porvair</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-prv/">LSE: PRV</a>). It released a trading update that showed it has made good progress in the first nine months of the year. It has achieved revenue growth of 8%, with underlying revenue being 11% up on the same period of the previous year. The company’s order book remains healthy, while the acquired Keystone Filter operations are being successfully integrated.</p>
<p>The problem facing investors, though, is that the Porvair share price appears to be overvalued. It trades on a price-to-earnings (P/E) ratio of around 28, which suggests that it lacks a margin of safety. And with its bottom line due to rise by 3% this year and 5% next year, it seems to lack a clear catalyst to push its stock price higher. As such, it appears to be a stock to avoid at the present time on valuation grounds, even though it is performing well from a business perspective.</p>
<h3><strong>Low valuation</strong></h3>
<p>In contrast, the Glencore share price seems to offer excellent value for money. It has a P/E ratio of just 9, which suggests that it has a wide margin of safety. This could be useful if the world economic outlook deteriorates over the next few years. With tariffs being put in place by the US, China and EU, the prospect of a full-scale trade war remains high. This could hurt the performance of the FTSE 100, and cheaper stocks could therefore be less affected. And while there are <a href="https://www.twelfthmagpie.com/investing/2018/09/07/is-the-glencore-share-price-tempting-you-heres-what-you-need-to-know/">regulatory risks</a> facing the company, the stock market appears to have priced them in.</p>
<p>With Glencore having a dividend yield of over 5% at the present time from a payout that is covered 2.3 times by profit, it seems to have income investing potential. Although its business model may still be subject to the ups-and-downs of the resources industry, it has been able to reduce debt in the last few years. Alongside asset sales, this has strengthened the company and could provide it with greater financial resilience during a downturn.</p>
<p>Since the stock is due to post positive earnings growth over the next two years, now could be a good time to buy it. At a time when a number of shares both inside and outside of the FTSE 100 are trading on high valuations, Glencore seems to offer an impressive investment outlook.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/09/18/glencore-is-a-ftse-100-dividend-share-yielding-5-thats-absurdly-cheap-right-now/">Glencore is a FTSE 100 dividend share yielding 5% that’s absurdly cheap 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/2026/06/23/down-10-to-below-6-now-heres-why-glencores-share-price-looks-a-bargain-to-me-anywhere-under-12-13/">Down 10% to below £6 now! Here’s why Glencore’s share price looks a bargain to me anywhere under £12.13</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/20/forget-the-ai-hype-uk-stocks-offer-tangible-returns-at-bargain-prices/">Forget the AI hype! UK stocks offer tangible returns at bargain prices</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/14/warren-buffett-warns-on-valuations-is-market-cap-to-gdp-flashing-a-bubble-signal-again/">Warren Buffett warns on valuations — is market cap-to-GDP flashing a bubble signal again?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/03/2-ftse-100-dividend-stocks-that-stand-out-for-shareholder-returns/">2 FTSE 100 dividend stocks that stand out for shareholder returns</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/02/up-over-100-are-these-ftse-100-names-still-among-the-top-stocks-to-buy/">Up over 100%, are these FTSE 100 names still among the top stocks to buy?</a></li></ul><p><em><a href="https://my.fool.com/profile/XMFstockpicker/info.aspx">Peter Stephens</a> has no position in any of the shares mentioned. The Motley Fool UK owns shares of Porvair. 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>2 dividend-paying small caps with market-beating growth potential</title>
                <link>https://www.twelfthmagpie.com/2018/06/06/2-dividend-paying-small-caps-with-market-beating-growth-potential/</link>
                                <pubDate>Wed, 06 Jun 2018 10:20:10 +0000</pubDate>
                <dc:creator><![CDATA[Rupert Hargreaves]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[porvair]]></category>
		<category><![CDATA[Somero Enterprises Inc.]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=113502</guid>
                                    <description><![CDATA[<p>If you're looking for income and growth, you should take a look at these stocks. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/06/06/2-dividend-paying-small-caps-with-market-beating-growth-potential/">2 dividend-paying small caps with market-beating growth potential</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Picking small-cap stocks can be a tricky sport, but if you get it right, you can make millions.</p>
<p>Today, I&#8217;m taking a look at two small-caps that have both smashed the market over the past few years and look set to continue this record.</p>
<h3>Profits surge</h3>
<p>Since mid-2014, shares in construction equipment group <strong>Somero Enterprises</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-som/">LSE: SOM</a>) have produced a return of 525% for investors, excluding dividends. This means the stock has beaten the FTSE 250 by a staggering 470% over the same period. </p>
<p>Surging profit is the reason why the company has been able to produce such impressive gains for investors. Since 2012, net profit has jumped a staggering 1,740% from $1m to $18m, a rate of around 80% per annum according to my figures. </p>
<p>Unfortunately, growth is expected to cool this year. Analysts have pencilled in earnings growth of 14% for the year ending 31 December. Still, in my opinion, the shares continue <a href="https://www.twelfthmagpie.com/investing/2018/03/21/2-promising-small-cap-growth-stocks-to-stash-in-your-isa/">to offer value for investors</a>. </p>
<p>The stock trades at a forward P/E of 14.4 that&#8217;s excluding cash on the balance sheet of $19m (£14m). Cash generation is one of Somero&#8217;s best qualities. Despite $14m of dividend payments in 2017, its cash balance only declined $1m for the year, as inflows easily covered shareholder distributions. </p>
<p>Somero&#8217;s cash balance is worth around 24p per share according to my figures, indicating that the stock is trading at a cash-adjusted P/E of 13.7. The shares currently yield 3.6%. </p>
<p>As the company continues to churn out cash, I believe its growth is only just getting started. </p>
<h3>Reach for the stars </h3>
<p>Filtration products specialist <strong>Porvair</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-prv/">LSE: PRV</a>) has doubled earnings per share in the past six years as it has consolidated its <a href="https://www.twelfthmagpie.com/investing/2018/04/26/2-growth-stocks-id-hold-for-the-next-20-years/">leading position in the global filtration market</a>. </p>
<p>While the company&#8217;s growth hasn&#8217;t been as robust as Somero&#8217;s, I still believe it is a growth stock to watch. </p>
<p>Today, the group reported that it is set to report a profits rise for the six months ended 31 May 2018 &#8220;<i>i</i><em>n line with management expectations,</em>&#8221; although there&#8217;s no further guidance on the bottom line. City analysts have pencilled in earnings growth for the full-year of 3%, which, in my opinion, seems conservative.</p>
<p>Indeed, today the company reported that underlying revenue growth for the period to the end of May was 13%, that&#8217;s compared to the City&#8217;s full-year target of 6%. </p>
<p>Personally, I believe that Porvair could be on track to beat the City&#8217;s predictions for the year if it continues on its current course. For this reason, I also believe the firm&#8217;s current valuation of 25 times forward earnings, does not accurately reflect its potential. </p>
<p>Along with Porvair&#8217;s growth track record, the shares also support a dividend yield of 0.9%. The payout has grown at an average annual rate of 10% for the past five years and is backed up by £2m of net cash on the balance sheet. </p>
<p>So overall, even though Porvair might look expensive, I firmly believe the company&#8217;s potential is understated. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/06/06/2-dividend-paying-small-caps-with-market-beating-growth-potential/">2 dividend-paying small caps with market-beating growth potential</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/forget-the-ai-hype-uk-stocks-offer-tangible-returns-at-bargain-prices/">Forget the AI hype! UK stocks offer tangible returns at bargain prices</a></li></ul><p><em>Rupert Hargreaves owns no share mentioned. The Motley Fool UK owns shares of Porvair. The Motley Fool UK has recommended Somero Enterprises, Inc. 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>2 growth stocks I&#8217;d hold for the next 20 years</title>
                <link>https://www.twelfthmagpie.com/2018/04/26/2-growth-stocks-id-hold-for-the-next-20-years/</link>
                                <pubDate>Thu, 26 Apr 2018 11:41:30 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[BBA Aviation]]></category>
		<category><![CDATA[porvair]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=112296</guid>
                                    <description><![CDATA[<p>There are plenty of growth shares out there that Royston Wild would buy and hold for decades. Here are two such profits powerhouses.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/04/26/2-growth-stocks-id-hold-for-the-next-20-years/">2 growth stocks I&#8217;d hold for the next 20 years</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>I am confident that the <strong>BBA Aviation</strong> (LSE: BBA) strong grip on the US aviation support market should lay the groundwork for brilliant earnings growth long into the future.</p>
<p>The <strong>FTSE 250</strong> business saw revenues jump 10% in 2017, to $2.37bn, as its core Signature division, responsible for more than four-fifths of group underlying operating profit, outperformed the broader market. And the arm has seen business momentum really picking up in recent months, organic revenue growth of 4.4% during July-December outperforming sales expansion of the broader US business and general aviation (or B&amp;GA) segment in which turnover rose by a more modest 4.1%.</p>
<p>Signature is the planet’s biggest fixed base operation (FBO) network for B&amp;GA customers, operating in more than 200 locations spanning the globe and which includes 37 locations in the 50 largest airports in the US. This formidable footprint leaves BBA Aviation in prime position to harness the steady growth in aviation traffic in the years ahead.</p>
<p>What’s more, BBA Aviation has teased the market with hints that additional M&amp;A action could be on the cards through the cultivation of more small bolt-on purchases. The company certainly has the financial firepower to pursue such earnings-boosting action &#8212; it secured a four-year extension to an existing $650m loan earlier this month which had been due to mature in March 2019.</p>
<h3><strong>Lifting off</strong></h3>
<p>BBA Aviation has seen earnings grow by double-digit percentages of late as the 2015 acquisition of rival Landmark has borne fruit. And it is expected to keep this run going with an extra 10% improvement in 2018. A more modest 7% rise is forecast for next year, although this is not to be scoffed at.</p>
<p>What’s more, the flying ace’s bright earnings outlook <a href="https://www.twelfthmagpie.com/investing/2018/04/23/one-ftse-250-dividend-growth-stock-id-buy-and-one-id-sell-after-todays-news/">is expected to keep pushing dividends higher</a> too, meaning investors can enjoy an added bonus of juicy 3.3% and 3.5% yields for this year and next respectively.</p>
<p>A forward P/E ratio of 16.9 times may be slightly toppy on paper, falling outside the widely-regarded value terrain of 15 times or below. However, I would consider this a reasonable price given BBA Aviation’s exceptional position in a market with terrific structural growth opportunities.</p>
<h3><b>A breath of fresh air</b></h3>
<p><strong>Porvair </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-prv/">LSE: PRV</a>) is another share with exceptional long-term revenues opportunities. The filtration specialist saw revenues reach an annual record of £116.4m in the 12 months to November 2017, its ability to source and integrate acquisition targets again continuing to help drive the top line.</p>
<p>Its approach to M&amp;A  gives it a leading position in a number of growing niches which carry exceptional barriers to entry, and helped by its formidable cash generation Porvair is showing no signs of slowing down yet. Indeed, it snapped up filter cartridge giant Keystone just last month to bolster its sales opportunities in the gigantic US market.       </p>
<p>Now Porvair boasts a long record of unbroken profits growth, the bottom line having swelled by double-digit percentages in more recent years. And City brokers expect this proud history to keep running, rises of 3% and 5% being forecast for fiscal 2018 and 2019 respectively.</p>
<p>The small-cap may deal on an elevated prospective P/E ratio of 24.2 times. But I believe Porvair’s expertise in many specialist markets across the globe makes it worthy of a premium rating.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/04/26/2-growth-stocks-id-hold-for-the-next-20-years/">2 growth stocks I&#8217;d hold for the next 20 years</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/forget-the-ai-hype-uk-stocks-offer-tangible-returns-at-bargain-prices/">Forget the AI hype! UK stocks offer tangible returns at bargain prices</a></li></ul><p><em>Royston Wild has no position in any of the shares mentioned. </em><em>The Motley Fool UK owns shares of and has recommended BBA Aviation. The Motley Fool UK owns shares of Porvair. 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>2 top growth shares for in-the-know investors</title>
                <link>https://www.twelfthmagpie.com/2018/04/17/2-top-growth-shares-for-in-the-know-investors/</link>
                                <pubDate>Tue, 17 Apr 2018 13:00:55 +0000</pubDate>
                <dc:creator><![CDATA[Peter Stephens]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Johnson Matthey]]></category>
		<category><![CDATA[porvair]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=111788</guid>
                                    <description><![CDATA[<p>These two shares appear to offer reliable growth in an uncertain market.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/04/17/2-top-growth-shares-for-in-the-know-investors/">2 top growth shares for in-the-know investors</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>The recent volatility in the FTSE 100 seems likely to continue over the medium term. Risks to global economic growth remain relatively high, with the threat of inflation and interest rate rises having the potential to hurt investor sentiment.</p>
<p>As such, many investors may wish to buy shares in companies that are able to offer relatively reliable growth prospects. They may not be the cheapest stocks around, but they could provide greater resilience and a more dependable outcome. With that in mind, here are two shares which could be worth a closer look.</p>
<h3><strong>Upbeat outlook</strong></h3>
<p>Reporting on Tuesday was specialist filtration and environmental technology company <strong>Porvair</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-prv/">LSE: PRV</a>). The company has made a strong start to the 2018 financial year, achieving revenue growth of 9% in the four months to the end of March. Profitability is in line with previous expectations, while order books remain healthy, according to the update.</p>
<p>The acquisition of Rohaysys in December could act as a positive catalyst on the company&#8217;s future performance. Its buy brings robotic sample handling expertise, which enhances its bioscience sample preparation capabilities. Meanwhile, the acquisition of Keystone Filter in February could also have a positive impact on performance, with plans to move its operations to the Virginia plant on track.</p>
<p>With Porvair having delivered a rising bottom line in each of the last five years, it appears to offer a relatively resilient growth outlook. Further growth in its bottom line is forecast over the next two years and this could improve investor sentiment towards the stock. As such, now could be a <a href="https://www.twelfthmagpie.com/investing/2018/01/29/one-double-bagger-growth-stock-id-buy-before-igas-energy-plc/">good time to buy it,</a> ahead of what may prove to be a volatile period for the FTSE 100.</p>
<h3><strong>Strong growth potential</strong></h3>
<p>Also offering investment potential within the chemicals industry is <strong>Johnson Matthey</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-jmat/">LSE: JMAT</a>). The company has a solid track record of growth, with its bottom line rising at an annualised rate of over 6% in the last five years. Additional growth is anticipated over the next two years, with the company&#8217;s bottom line due to increase by 9% this year and by a further 10% next year.</p>
<p>This improved rate of growth could help to justify a higher rating for the stock. Since it trades on a price-to-earnings growth (PEG) ratio of just 1.6, there seems to be significant capital growth potential ahead.</p>
<p>With Johnson Matthey&#8217;s dividend payout currently covered 2.7 times by profit, there seems to be significant scope for a rapid growth rate in dividends over the medium term. Therefore, while the stock currently has a dividend yield of just 2.4% at present, it could become a more enticing income play over the coming years.</p>
<p>This could add to its overall return and lead to a prosperous period for the company&#8217;s investors at a time when the wider index may experience a challenging period.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/04/17/2-top-growth-shares-for-in-the-know-investors/">2 top growth shares for in-the-know investors</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/forget-the-ai-hype-uk-stocks-offer-tangible-returns-at-bargain-prices/">Forget the AI hype! UK stocks offer tangible returns at bargain prices</a></li></ul><p><em><a href="https://my.fool.com/profile/XMFstockpicker/info.aspx">Peter Stephens</a> owns shares of Johnson Matthey. The Motley Fool UK owns shares of Porvair. 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>One double-bagger growth stock I&#8217;d buy before IGas Energy plc</title>
                <link>https://www.twelfthmagpie.com/2018/01/29/one-double-bagger-growth-stock-id-buy-before-igas-energy-plc/</link>
                                <pubDate>Mon, 29 Jan 2018 13:25:53 +0000</pubDate>
                <dc:creator><![CDATA[Roland Head]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[IGAS Energy]]></category>
		<category><![CDATA[porvair]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=108325</guid>
                                    <description><![CDATA[<p>Roland Head looks takes a fresh look at IGas Energy plc (LON:IGAS) ahead of its 2018 drilling programme.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/01/29/one-double-bagger-growth-stock-id-buy-before-igas-energy-plc/">One double-bagger growth stock I&#8217;d buy before IGas Energy plc</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>Shares of shale gas hopeful <strong>IGas Energy </strong>(LSE: IGAS) have risen by 84% from a low of 49p in just over four months.</p>
<p>It&#8217;s a strong comeback for a company that was forced into a painful refinancing in 2017. IGas now has backing from both chemicals giant INEOS and from oil and gas investor Kerogen Capital, which owns 28% of the group&#8217;s shares after pumping £29m into last year&#8217;s refinancing.</p>
<p>Although this AIM-listed firm is a relatively small investment for both INEOS and Kerogen, both are credible investors with industry knowledge. Their support suggests to me that they see considerable upside potential in the firm&#8217;s assets.</p>
<h3>An action-packed year</h3>
<p>INEOS support means that IGas now has a carried work programme worth up to £183m. The company is hoping to drill two new shale wells this year, and further data is expected from a number of rivals also hoping to drill or frack UK shale wells.</p>
<p>Rising oil prices have also helped the group&#8217;s portfolio of conventional oil and gas wells. These are now producing around 2,500 barrels of oil equivalent per day, at a cost of about $25 per barrel. Group revenue is expected to rise by about 10% to £36m this year, and broker forecasts suggest a net profit of about £3m.</p>
<p>The speculative opportunity for shareholders lies in the shale exploration programme. In my opinion, success could easily result in rapid gains. But if early results from shale wells are disappointing, then I&#8217;d suspect the shares may decline.</p>
<p>In my opinion this situation remains <a href="https://www.twelfthmagpie.com/investing/2018/01/14/is-igas-energy-plc-your-opportunity-to-make-a-million/">highly speculative</a>. I&#8217;d only be prepared to consider this stock for a small part of my portfolio.</p>
<h3>One share I&#8217;d buy today</h3>
<p>A stock I&#8217;d be happy to own in much larger amounts is <strong>Porvair </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-prv/">LSE: PRV</a>), a specialist maker of industrial filters. This £243m firm has risen by more than 850% since the financial crisis, and has gained 85% over the last two years.</p>
<p>Today&#8217;s full-year results suggest to me that the group&#8217;s growth potential remains strong. Pre-tax profit rose by 16% to £11.7m last year, while sales were 6% higher at £116.4m. Earnings per share climbed 14% to 19.5p.</p>
<p>Although Porvair spent £11.4m on acquisitions and capital expenditure last year, the group still ended the year with net cash of £9.8m. That&#8217;s just £3.8m less than the £13.6m reported at the end of 2016, highlighting the group&#8217;s strong cash generation.</p>
<h3>Quality at a reasonable price?</h3>
<p>Porvair shares are up 3% at the time of writing, reflecting chief executive Ben Stocks&#8217; view that the group has started 2018 with <em>&#8220;a healthy order position and is trading well&#8221;</em>.</p>
<p>The firm&#8217;s growth strategy is based on the principle that it will only sell products which require specialist skills to make, and which must be replaced regularly.</p>
<p>This approach appears to provide a high level of repeat business and attractive pricing power, due to limited competition. The Kings Lynn-based firm&#8217;s operating margins have now been stable at about 10% for the last five years.</p>
<p>Although Porvair stock may look pricey on 28 times forecast earnings, I believe this is a quality growth business that&#8217;s worth owning. I&#8217;d be happy to buy at current levels, with a view to averaging down during any future periods of weakness.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/01/29/one-double-bagger-growth-stock-id-buy-before-igas-energy-plc/">One double-bagger growth stock I&#8217;d buy before IGas Energy 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/2026/06/20/forget-the-ai-hype-uk-stocks-offer-tangible-returns-at-bargain-prices/">Forget the AI hype! UK stocks offer tangible returns at bargain prices</a></li></ul><p><em>Roland Head no position in any of the shares mentioned. The Motley Fool UK owns shares of Porvair. 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>2 high-growth stocks that are just getting started</title>
                <link>https://www.twelfthmagpie.com/2018/01/20/2-high-growth-stocks-that-are-just-getting-started/</link>
                                <pubDate>Sat, 20 Jan 2018 11:59:13 +0000</pubDate>
                <dc:creator><![CDATA[Bilaal Mohamed]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[AdEPT Telcom]]></category>
		<category><![CDATA[porvair]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=107650</guid>
                                    <description><![CDATA[<p>Bilaal Mohamed thinks long runways for growth still remain for these top-performing small caps.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/01/20/2-high-growth-stocks-that-are-just-getting-started/">2 high-growth stocks that are just getting started</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>If you were brave enough to have invested in 2009 following the dark days of the last financial crisis, then you’ll have benefitted a lot from the subsequent stock market bull run that will soon be in its ninth year. So does that mean we should now wait until the next big crash before buying? Absolutely not &#8211; that would be a very foolish strategy based on fear alone.</p>
<h3>London and the South East</h3>
<p>With this in mind, today I’m looking at two smaller companies that have indeed had a great run in recent years, but in my view should stand the test of time and continue performing well long into the future.</p>
<p>First up is small-cap integrated telecommunications group <strong>AdEPT Telecom</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-adt/">LSE: ADT</a>). The <strong>AIM</strong>-listed firm, based in Tunbridge Wells in Kent is one of the UK&#8217;s leading independent providers of managed services for IT, unified communications, connectivity and voice solutions.</p>
<h3>Transformation</h3>
<p>It wasn&#8217;t always thus. In early 2015 the company embarked on a journey to transform itself from its original telecoms background into unified comms and then into IT, with a particular focus on London and the South East, as well as the public sector.</p>
<p>That looks to me like a sound strategy considering the fact that the economy in London and the South East is forecast to grow faster than the other regions in the UK, and that there is an increasing drive in the public sector to do more business with small and medium-sized enterprises (SMEs).</p>
<p>AdEPT is currently valued at just £68m, and last year generated £3.4m in pre-tax profits on revenues of £34.4m. At present levels I believe the shares offer exceptional growth at the very reasonable price of 13 times current year earnings.</p>
<h3>Environmental technologies</h3>
<p>For those who are still reluctant to go fishing for stocks in London’s junior AIM market then fret not, I may have found an equally worthy alternative. <strong>Porvair</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-prv/">LSE: PRV</a>) is a company I first picked out last year as one of the <a href="https://www.twelfthmagpie.com/investing/2017/09/24/2-stocks-youll-brag-about-owning-some-day/">stocks you might brag about owning some day</a>, with the specialist filtration and environmental technologies group again enjoying another good year in 2017.</p>
<p>In a trading update last month, the Norfolk-based group said that underlying revenue growth for the year to November 2017 was 11%, largely due to higher levels of growth in its Microfiltration division, although sales in its Metals Filtration division were not so hot, remaining broadly flat. And while preliminary results aren’t due to be announced officially until later this month, it’s expected that full-year earnings will be somewhat ahead of management’s previous expectations.</p>
<p>Porvair has delivered strong growth in recent years, with the share’s high rating reflecting the market’s bullish long-term view on the stock. Nevertheless, the shares are still worth buying on a current year earnings multiple of 26. A little expensive perhaps, but I reckon they’re well worth the premium.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/01/20/2-high-growth-stocks-that-are-just-getting-started/">2 high-growth stocks that are just getting started</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/forget-the-ai-hype-uk-stocks-offer-tangible-returns-at-bargain-prices/">Forget the AI hype! UK stocks offer tangible returns at bargain prices</a></li></ul><p><em>Bilaal Mohamed has no position in any shares mentioned. The Motley Fool UK owns shares of Porvair. 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>Two opportunities to make you a million?</title>
                <link>https://www.twelfthmagpie.com/2017/12/14/two-opportunities-to-make-you-a-million/</link>
                                <pubDate>Thu, 14 Dec 2017 11:45:18 +0000</pubDate>
                <dc:creator><![CDATA[Rupert Hargreaves]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Numis Corporation]]></category>
		<category><![CDATA[porvair]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=106430</guid>
                                    <description><![CDATA[<p>You might be missing out if you avoid these two stocks...</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/12/14/two-opportunities-to-make-you-a-million/">Two opportunities to make you a million?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>Over the past year, shares in <strong>Numis Corporation</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-num/">LSE: NUM</a>) have smashed the market returning 27%, excluding dividends, against the FTSE 100 return of 7.7%. At the time of writing, the shares <a href="https://www.twelfthmagpie.com/investing/2017/11/10/2-under-the-radar-stocks-paying-big-dividends/">currently support a dividend yield of 4%</a>, so after including this distribution, the return for the year will likely exceed 30%. </p>
<p>But can this financial services business continue on its current trajectory? </p>
<h3>Buy ahead of further growth? </h3>
<p>Even though Numis is a relatively young business, the firm recently toppled JPMorgan Cazenove from its long-held position as the most popular stockbroker in the City. Numis has grabbed market share as bigger banks have focused on more significant corporate clients. </p>
<p>Since 2010, Numis has added a net of about 70 clients to its books compared to JPMorgan Cazenove’s client roster that has fallen by nearly a quarter from 253.</p>
<p>Market share growth has helped Numis grow, but the firm&#8217;s profits are ultimately dependant upon market conditions. Pre-tax profit has roughly doubled during the past five years thanks to buoyant markets, but analysts are expecting earnings to slide next year by 19%, amid mixed markets. Even though the group reported pre-tax profit growth of 18% for the fiscal year ending 30 September, first half profits slumped 38% year-on-year. </p>
<p>If markets remain buoyant, next year could be another of growth for Numis but, as yet, it&#8217;s impossible to tell. </p>
<p>Still, I believe that the company has what it takes to continue to grow over the long term, no matter what the market environment. With net cash of nearly £100m, the shares trade at a cash-adjusted forward P/E of 10.2, according to my figures. </p>
<h3>Charging ahead</h3>
<p>Numis isn&#8217;t the only small-cap growth stock that&#8217;s attracted my attention for its potential. Shares in filtration business <strong>Porvair</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-prv/">LSE: PRV</a>) have surged by nearly 200%, excluding dividends, since the end of 2013. </p>
<p>This performance has left the stock trading at a premium multiple of 25.2 times forward earnings, although this is a multiple I believe is entirely deserved. </p>
<p>Porvair is a highly specialised business, which means it has a unique position in the market. Management is using cash generation to reinvest, buying bolt-on acquisitions, such as Dutch group Rohasys BV just last week. This particular deal brings robotic sample handling expertise to the group, enhancing its bioscience sample preparation capabilities.  </p>
<p>As well as these deals, strong organic growth is helping the company. In a recent trading update, management announced that earnings for the year to 30 November are expected to be ahead of forecasts with overall underlying revenue growth of 13%. </p>
<p>If Porvair can continue to grow earnings organically while reinvesting in its business, in my view there&#8217;s no reason why the shares can&#8217;t head higher while <a href="https://www.twelfthmagpie.com/investing/2017/12/07/could-these-secret-stocks-make-you-stunningly-rich/">maintaining their high multiple</a>. There&#8217;s also scope for significant dividend growth as the payout of 4.1p is covered 4.5 times by earnings per share. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/12/14/two-opportunities-to-make-you-a-million/">Two opportunities to make you a million?</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/forget-the-ai-hype-uk-stocks-offer-tangible-returns-at-bargain-prices/">Forget the AI hype! UK stocks offer tangible returns at bargain prices</a></li></ul><p><em>Rupert Hargreaves owns no share mentioned. The Motley Fool UK owns shares of Porvair. 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>Is Zanaga Iron Ore Co Ltd a once-in-a-lifetime opportunity to make a million?</title>
                <link>https://www.twelfthmagpie.com/2017/12/08/is-zanaga-iron-ore-co-ltd-a-once-in-a-lifetime-opportunity-to-make-a-million/</link>
                                <pubDate>Fri, 08 Dec 2017 11:01:49 +0000</pubDate>
                <dc:creator><![CDATA[Peter Stephens]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[porvair]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=106222</guid>
                                    <description><![CDATA[<p>Could Zanaga Iron Ore Co Ltd (LON: ZIOC) deliver further share price growth?</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/12/08/is-zanaga-iron-ore-co-ltd-a-once-in-a-lifetime-opportunity-to-make-a-million/">Is Zanaga Iron Ore Co Ltd a once-in-a-lifetime opportunity to make a million?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>In the last three months, shares in <strong>Zanaga Iron Ore</strong> (LSE: ZIOC) have risen 225%. That&#8217;s a stunning performance which shows that investors are becoming increasingly positive about the prospects for the business. However, could such a sudden rise be followed by an equally fast fall? Or does the stock have the potential to help its investors become millionaires?</p>
<h3><strong>Improving outlook</strong></h3>
<p>Positive news flow has been the key reason for the rise in the Zanaga share price in recent months. The company announced at the same time as its first-half results that there may be the potential for production in the near term. It is considering a small-scale, early production start-up project. This could transform the company from being an exploration-focused business to also having production capacity. This may help to de-risk the company&#8217;s outlook, as well as provide an improved financial outlook due to the revenue that may be generated from the project.</p>
<p>Clearly, there is no certainty that production will commence over the medium term. And the company&#8217;s share price in the short run is set to be closely linked to how the potential production angle pans out. However, with the prospects for the iron ore industry having improved in recent months, Zanaga&#8217;s potential as a producer and as an exploration company could be significant.</p>
<p>Certainly, its share price is likely to remain volatile. Its small size and uncertain outlook mean that investor sentiment could <a href="https://www.twelfthmagpie.com/investing/2017/11/26/why-id-consider-buying-zanaga-iron-ore-co-ltd-after-three-bagging-in-a-month/">change rapidly</a>. However, for investors who are less risk-averse and who are upbeat about the prospects for the wider mining sector, it could be a means of adding diversification as well as upbeat capital growth prospects to their portfolios for the long run.</p>
<h3><strong>High risks</strong></h3>
<p>As mentioned, Zanaga appears to be a relatively high-risk share to own at the present time. Also offering high risks but for a different reason is specialist filtration and environmental technologies group <strong>Porvair </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-prv/">LSE: PRV</a>). The company reported a positive trading update on Friday which showed that revenue growth in the year to 30 November was 6%. Underlying revenue growth was 11% overall, 13% in the Microfiltration division and 1% in the Metals Filtration division.</p>
<p>Encouragingly, the company&#8217;s earnings are forecast to be ahead of management expectations. This helped to push the shares as much as 9% higher following the release of the trading update. However, they now trade on a price-to-earnings (P/E) ratio of 24, which suggests that they may be overvalued. Furthermore, with earnings due to rise by just 3% in the current year, their price-to-earnings growth (PEG) ratio of 8 seems excessively high.</p>
<p>As such, now may be the right time for investors to avoid Porvair. While its performance from a business perspective may continue to be <a href="https://www.twelfthmagpie.com/investing/2017/12/07/could-these-secret-stocks-make-you-stunningly-rich/">positive,</a> it lacks a margin of safety. This means that its risk/reward ratio may be unfavourable.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/12/08/is-zanaga-iron-ore-co-ltd-a-once-in-a-lifetime-opportunity-to-make-a-million/">Is Zanaga Iron Ore Co Ltd a once-in-a-lifetime opportunity to make a million?</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/forget-the-ai-hype-uk-stocks-offer-tangible-returns-at-bargain-prices/">Forget the AI hype! UK stocks offer tangible returns at bargain prices</a></li></ul><p><em>Peter Stephens has no position in any shares mentioned. The Motley Fool UK owns shares of Porvair. 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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