Agreed an excellent set of results and the diversification and forward integration looks to be going well. Last week's blip was probably a bit of profit taking by an institutional shareholder. I know Schroders have reduced their holding recently. Trading volumes are pretty thin with this one. An excellent day for followers of (Lord) John Lee's column in the FT with GHH and TET both reporting excellent finals.
"High profile overseas takeovers such as SoftBank's bid for LSE:ARM:ARM are highlighting the attractiveness of many UK quoted companies to a foreign bidder. It is not just larger companies that will come under the scrutiny of international ..."
"Interim results show a difficult Q1 but a recovery in Q2; with greater sales growth anticipated in H2, the group remains on track to achieve our existing forecasts. The shares are trading on a premium rating to the company's peers but also continue to progressively outperform. Having weathered a difficult period, and looking to a strongerH2, this gives us encouragement; therefore we remain enthusiastic supporters of the groups technology-enabling and strategically important products as well as its longer-term growth strategy..." finnCap note out this morning on Research Tree
thanks for the post midcapper - take a look at the dates of the othe rposts here - last post on this page is jan 2011..incredible. quiety succesful - i've only been in here a month or so - hope they are on the verge of something or just a continuation....
It's remarkable that there haven't been any posts on this board since April 2013, when during the intervening period we've seen some serious, long-awaited SP growth against a backdrop of positive interims and news of 2 new acquisitions that forward the company's strategic goals.
It all looks pretty encouraging to me, but I'd be interested to hear views from others. Is GHH on the verge of something spectacular?
Gooch had a buy rating reaffirmed by research analysts at N+1 Singer in a report released on Tuesday.
- Q- Switch should have experienced stable sales.
- Aerospace and Defence is well positioned for growth with a healthy pipeline of contracts due this year.
- GHH is sheltered from defence cuts as it equips existing platforms with the latest defence technology.
- Cervical cancer diagnostics pre-clinical trial results are expected within the calendar year (6-8m away).
- Management is leveraging G&Hs excellence in components to move up the value chain.
- The weak sterling with have a marginally positive impact on earning.
- Over 25% of revenues come from the niche application of Fibre Optics, a growth market.
I see no reason why this is down over 5% since the start of the year. 2013 should be knockout for Gooch.
I make it we're down just over 10% YTD which all things considered is a pretty poor start. Haven't seen much company info apart from the options exercises by the directors a while back and I've not dug deeply enough into these to see whether they were of a size greater than needed to match tax liabilities. The half year will be up soon, any ideas on the expectations for these???
WEeve had a pretty pedestrian year for the GHH shareprice & are still a long way from regaining the previous highs of 575p achieved in June 2011.
We're now in a situation where the sp in the 30 days from 7th December will determine management's rewards under the 3 year LTIP (Value Creation Plan) which matures on 7th January. Every 1p on the average share price in these 30 days equates to an extra 30k + quid in management 's nil cost options.
So I fully expect a pretty bullish forward looking statement with the "in-line" Interims - this may be enough to take the sp to above 500p. The management incentive to bullish is certainly there & the business does seem to be doing pretty well - so I'm considering a few top-ups over the next 2 weeks.
Hi If you want more info on Gooch, LCFResearch.com is a good place to start lots of info on lots of AIM stocks and its free! I've been invested here for years topped up at
45p in the 08/09 madness and topsliced in the summer so I have a good chunk in my SIPP at nil cost. This stock is buy and hold I believe and one day someone will make a bid at several times the current price maybe . As always DYOR.
Gooch & Housego a buy -
Investec raises Gooch & Housego (GHH.L) price target to 630p from 620p and rates buy
Altium raises Gooch & Housego (GHH.L) price target to 610p from 595p and rates buy
Expect to see more upgrades in the next few days before a quiet period leading up to the mid H2 IMS in July (probably around the 13th). We should then see another set of upgrades trending to a concensus 675p - driven by hints on the v positive eps benefits of the 2 recent acquisitions.
We'll hit 600p soon after the analysts etc absorb & interpret the data that's going to be presented to them later today. We'll see broker upgrades over the few days.
Today's historical figures only hint at the impact of the 2 acquisitions made recently - we've only got 2 months of EM4 & nothing from Crystal Technology.
Include full contributions from these 2 (plus sales & costs synergies) & my quick "back of envelope" calcs lead me to pencil in 22p eps in H2 FY2011 & 40-45p in FY2012. Reduce the forward P/E to 20 & we've got a shot at 800p+ by the middle of next year.
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