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Shaft Sinkers

April 2012

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.

Shaft Sinkers has released a surprisingly upbeat trading update highlighting that results will be ahead of market expectations, with revenue growth of 23% expected over the previous year. Net cash ended the year at Â£6m against expectations of Â£4m. Meanwhile, having confirmed in December that sinking works at its Volgakaly potash mine (its largest project) had been suspended it now says that negotiations to resume operations are continuing.The shares have recovered 50% from their low but at 61.5p still look cheap on an FY 2012 PE multiple of 4.25 and EV/ EBITDA of 1.25, while broker Westhouse expects a dividend of 7.1p, putting it on a double digit yield. Speculative buy. ...

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Restaurant Group - To open another 25/30 restaurants

Shaft Sinkers (October 2012)

Shaft Sinkers - Punchy dividend yield of 7.4% (June 2012)

Shaft Sinkers (May 2012)

Shaft Sinkers (February 2012)

Shaft Sinkers (October 2011)

Shaft Sinkers - Prospective PE just 7.8 (July 2011)

Shaft Sinkers - Results beat forecasts (June 2011)

Shaft Sinkers (March 2011)

Shaft Sinkers - Very exciting recent issue could double or more from here (February 2011)

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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