At first glance, it looks as if Countrywide is a company in turmoil. Three of the company’s top executives walked out this month, the latest in a long line of departures as a result of the dramatic reshaping of the group under chief executive Alison Platt. All three senior management figures walked out to pursue “other opportunities”, which was the same excuse given earlier in the year when the managing director of estate agency group, Bob Scarff, and the group commercial director, Nick Dunning, both stepped aside at short notice. It looks as if these departures are part of the group’s drastic restructuring. However, while management is busy reorganising the business, Countrywide’s profits are falling. Earlier this month Countrywide revealed operating profits for the first nine months of the year were down 11% year-on-year.  City analysts expect full-year earnings per share to fall 13% year-on-year so for the time being it might be wise to avoid the company. 

Thomas Cook fell to a 52-week low on concerns that geopolitics would weigh on the company’s earnings for the next few years. But the company dispelled these concerns this week by reporting full-year results that beat expectations. Net profit nearly doubled in the year to the end of September and based on these figures the company currently trades at a P/E of 9.1. After an impressive 2015, Thomas Cook could have more in the tank for 2016. 

Stagnant sales and concerning levels of management compensation have weighed on Vislink’s share price this year. Vislink’s shares are down by nearly 50% from their June peak and they now trade at a forward P/E of 7.5. City analysts expect the company to report earnings growth of 18% for 2015, implying that the group is trading at a 2016 P/E of 6.9. As With such a low valuation, Vislink’s shares could be worth a bet. 

Daily Mail and General Trust has been hurt by lower-than-expected visitor numbers to the company’s MailOnline newspaper. Group pre-tax profit fell 4%for the year ended 30 September 2015, but City analysts expect the company to return to growth next year. Earnings per share growth of 4% in pencilled in for next year. Daily Mail and General trades at a forward P/E of 11.8, which isn’t overly expensive and the shares support a yield of 3.2%. Still, if the company disappoints again, the shares could print a new 52-week low. 

City analysts expect UK Mail’s earnings per share to slump 50% to 15p for the year ending 31/03/2016 and based on this forecast the company is trading at a forward P/E of 21.6, a premium growth multiple the company doesn’t deserve. What’s more, UK Mail’s shares may support a dividend yield of 7.2% by the payout isn’t covered by earnings per share. Overall, UK Mail might be one company to avoid.

The post Should You Buy These Stocks Near 52-Week Lows? Countrywide PLC, Thomas Cook Group plc, Vislink plc, Daily Mail and General Trust plc & UK Mail Group PLC appeared first on The Twelfth Magpie.

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Rupert Hargreaves 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 us better investors.

Elsewhere, Vislink (LSE: VLK) and Imagination Technologies (LSE: IMG) have fallen this week in the wake of poor trading updates. My advice would be to keep an eye on them. 

China

Rio Tinto’s fortunes hinge on how quickly China will show the word that all the pieces of its economy are in the right place — exports, domestic consumption and investment. This is important for Rio, whose fundamentals aren’t in great shape (but aren’t too bad, either). Its poor strategy on iron ore production was plainly wrong, and trends are not encouraging, yet these elements are priced in. What lies ahead then?

“It’s important that China does continue to improve its data quality to reflect the fast-changing structure of its economy,” IMF spokesman Gerry Rice said on Thursday, according to AFP. The slump in commodities and these issues could weigh on Rio’s valuation for some time, so I wouldn’t buy its stock for at least a couple of quarters even though its valuation is not prohibitive. 

Fundamentals

Advanced video technology is a promising business, but one that carries risk — and that is reflected in Vislink’s recent performance. Its half-year results for the six months ended 30 June, which were released on Wednesday, showed declining order intake, lower revenues, rising net debt and higher adjusted earnings. Adjusted margins are up, but I think investors are preoccupied about the level of core cash flow that the company is generating at a time when, as the group said, its “restructuring is largely complete“. Operating cash flow was £5m lower in 1H15 vs 1H14 — and very close to zero, before capital expenditures!

Its shares have dropped almost 20% to 43.5p over the last couple of days, and even if it accelerates in the second half of the year, its net earnings will very unlikely come in above £4m, which would imply a forward P/E of about 15x. Its forward valuation, according to my base-case scenario, is around 25x P/E. There are better alternatives in this market at that price, so I’d give it a pass for now based on fundamentals. 

Cyclicality 

Do you fancy some kind of exposure to the multimedia and communication technology industry? Well, chipmaker Imagination Technologies may be the right investment for you if have a very long-term view — but even then, I’d advise you to include IMG in a properly diversified portfolio. 

A couple of profit warnings this year have been difficult to digest: the stock has fallen 10% this week following its interim trading update, which signalled that the semiconductor sector has enjoyed better times in the past. This kind of business is highly cyclical, so before investing in it ask yourself whether you have enough knowledge and resources to be able to withstand a prolonged downturn. Finally, forward multiples based on 2017 earnings are way too high for value hunters, while cash flow metrics indicate to me that my savings should be invested elsewhere. 

The post Do Rio Tinto plc, Vislink plc & Imagination Technologies Group plc Trade In “Bargain Territory”? appeared first on The Twelfth Magpie.

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• The only FTSE 100 stock I own right now

Alessandro Pasetti has no position in any shares mentioned. The Motley Fool UK owns shares of Imagination Technologies. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Very tiny

Nanoco Group (LSE: NANO) is an intriguing proposition. To quote the company itself, “Nanoco leads the world in the research, development and large-scale manufacture of heavy-metal free quantum dots and semiconductor nanoparticles for use in displays, lighting, solar energy and bio-imaging“.

The company has a patented technology for making these little doodahs on a large scale, and the demand for the LCDs in which they’re used can surely only grow — especially as rules restricting toxic heavy metals are imposed.

Now, Nanoco is not expected to record a profit until July 2016, with forecasts suggesting a P/E of 65 for that year on today’s 109p share price — and there are quite a few shorters out there. I wouldn’t buy right now, but I’ll be examining this year’s results.

Biotech

Proteome Sciences (LSE: PRM) develops protein and peptide markers for clinical use, including the diagnosis of things like Alzheimer’s, stroke and cancer. That’s clearly a technology with great potential, but again we’re looking at a company that’s not yet in profit.

Results for 2014 released in May showed a 9% rise in revenue and told us of “strong underlying growth in biomarker services“. And though the year ended with a post-tax loss of £3.6m, chairman Christopher Pearce said he expects to see “strong growth in revenue and news flow in 2015“. With no profit forecast yet it’s hard to value the 27p shares, but Proteome is worth keeping an eye on.

Watching

Vislink (LSE: VLK), a company that develops advanced video technology for the media, law enforcement and defence markets, has not grown as quickly as some earlier investors had hoped. But at 60p the shares have still trebled in five years and have gained 32% in the past 12 months. After a steady climb since the start of 2015, could we be heading for a golden period?

Vislink recorded its first profit in 2012, and by 2014 it beat expectations with an adjusted operating profit of £7.2m from revenue of £61.9m — and paid a decent dividend too. At the time of the report in May, chairman John Hawkins reckoned that 2014 had been “a transformation year“. And with forecasts putting the shares on a P/E of 12.5 this year, dropping to 11.4 next, there might be a transformation in investors’ rewards, too.

The post Are Nanoco Group PLC, Proteome Sciences plc And Vislink plc Heading For The Big Time? appeared first on The Twelfth Magpie.

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• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
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• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Alan Oscroft 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 us better investors.

So, in an attempt to discover some of the market’s future stars, here are five UK small caps that look cheap compared to their projected earnings growth. 

Hot stocks

Utilitywise (LSE: UTW) tops the list of the UK’s hottest growth stocks.

Currently trading at a forward P/E of 11.7, Utilitywise’s earnings per share are set to expand by 37% this year, giving a PEG ratio of 0.3. A ratio of less than one indicates that the company’s shares are undervalued compared to projected growth.

Utilitywise currently offers a dividend yield of 2.7%, and earnings are set to grow a further 40% during 2016. 

Marketing agency Communisis’ (LSE: CMS) digital transition is gaining traction and the company’s earnings are set to charge higher over the next few years as a result.

Communisis currently trades at a forward P/E of 7.9 and supports a dividend yield of 4.2%. Earnings per share are expected to grow by 39% this year, so the company’s shares trade at a PEG ratio of 0.2.

Moreover, Communisis’ earnings are set to expand 15% during 2016. The company is trading at a 2016 P/E of 6.9. 

Boring but exciting

Trifast’s (LSE: TRI) business is boring, but the company’s growth is exciting. A producer of nuts, bolts and screws, Trifast’s earnings are set to grow by 31% during 2015.

The company is currently trading at a forward P/E of 12.6 and a PEG ratio of 0.4. Analysts’ figures show that Trifast is set to offer a dividend yield of 1.7% during 2015. 

AGA Rangemaster (LSE: AGA) is benefiting from the UK housing boom as demand for the company’s AGA Range Cookers & Ovens grows.

 AGA’s earnings are set to grow by 25% during 2016, which, when combined with the company’s lowly 2016 P/E of 5.1, means that the group is trading at a PEG ratio of 0.2 — that’s astonishingly cheap.

However, it should be noted that AGA has a large pension deficit that it is struggling to bring down, hurting the company’s valuation. 

Undervalued 

Vislink (LSE: VLK) is one technology company that’s missed out of the recent tech bubble.

Vislink currently trades at a forward P/E of 10.4 and supports a dividend yield of 3.1%. During 2015, the company’s earnings per share are set to expand by 19%, indicating that the company is trading at a PEG ratio of 0.6.

Further, earnings growth of 8% is pencilled in for 2016. Using these figures, Vislink is trading at a 2016 P/E of 9.6. The company’s shares are set to yield 3.3% during 2016.

The post 5 Small-Cap Companies Set For Explosive Growth: Utilitywise PLC, Communisis plc, Trifast plc, AGA Rangemaster Group Plc And Vislink plc appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Rupert Hargreaves 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 us better investors.