Panmure Gordon (PMR)
Posted: November 17th, 2016, 5:23 pm
Hi all
I wonder if Panmure Gordon aren't worth an investment. I know brokers are not always popular as earnings tend to be lumpy but I believe the valuation here is quite compelling.
The market cap is about £8.5m.
In the first half this year they made a pre tax, pre redundancy profit of £1.7m. After £1.4m of redundancy costs they made a profit of £0.3m and a post tax profit of £0.2m so they were profitable for the half year and very profitable pre exceptionals.
The balance sheet is excellent and they trade at a discount to both net tangible asset value and net current assets.
Net tangible assets are nearly £15m and net current assets less all debt are nearly £12m.
They have a major shareholder who own over 40% of the stock who I think are Kuwaiti. They also have recently had takeover interest from another large shareholder but this has aparantly been rebuffed by the Kuwaitis. Maybe they're waiting for a better price or maybe they're planning on launching a bid of their own.
All in all I think they're good value and have bought some at around 50p.
Lester
I wonder if Panmure Gordon aren't worth an investment. I know brokers are not always popular as earnings tend to be lumpy but I believe the valuation here is quite compelling.
The market cap is about £8.5m.
In the first half this year they made a pre tax, pre redundancy profit of £1.7m. After £1.4m of redundancy costs they made a profit of £0.3m and a post tax profit of £0.2m so they were profitable for the half year and very profitable pre exceptionals.
The balance sheet is excellent and they trade at a discount to both net tangible asset value and net current assets.
Net tangible assets are nearly £15m and net current assets less all debt are nearly £12m.
They have a major shareholder who own over 40% of the stock who I think are Kuwaiti. They also have recently had takeover interest from another large shareholder but this has aparantly been rebuffed by the Kuwaitis. Maybe they're waiting for a better price or maybe they're planning on launching a bid of their own.
All in all I think they're good value and have bought some at around 50p.
Lester