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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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NCC - DKW introduces price target of 439p

August 2008

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:
  • NCC
  • Price:
  • 358p
Since we made NCC a main write-up in November 2004 at 184p the shares have performed extremely well, peaking at 420p before pulling back to the current 358p. Results for the year to 31 May show that further good progress has been made with revenue rising 41% to £35.7m and pretax profit increasing 29% to £10.5m.  Eps increased 33% to 22.4p. In spite of spending £10.4m on two acquisitions net debt was only £3.4m. NCC's core business involves providing escrow solutions in which it acts as a neutral third party that sits between a software developer and its licencee and holds critical material (usually source code), which it will release if the software developer goes bust. Escrow solutions now forms a key plank of any firm's ...

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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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