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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Primary Recommendation

Quarto - Prospective PE: 4.6

April 2003

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • QRT
Over the month we met with  the management of Quarto, the International Co-Edition book publisher,  at their head office in Islington.   Historically, Quarto's rating has suffered from investors' perceptions that it is saddled with more debt than it can handle.  But, according to its latest figures, the second year of profit growth, net debt has fallen sharply and bargain hunters are already becoming attracted to Quarto's ultra-low prospective PE of 4.6,based on its forecast earnings of 21.6p this year.  The rating  looks particularly anomalous because Quarto enjoys substantial recurring and high margin income  from its backlist titles.  As founder and chief executive, Laurence Orbach, points ...

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Related Articles

Quarto - Tender offer boosts shares (September 2003)
Quarto - Bid approach (August 2003)
Quarto - Co-edition publisher set for re-rating (March 2003)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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