Updates and Ideas

Speedy Hire - Tool hire group growing asset utilisation and ROCE rapidly

August 2019

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.

When I joined The Momentum Investor early in the 2000s, tool hire group Speedy was one of those easily understandable “concept” stocks investors love. It has a simple premise of opening a batch of new depots each year to expand its UK presence and it enjoyed double digit growth with regularity, with a high PE to match. But eventually the law of big numbers and a maturing market kicked in and this decade the shares have experienced a yo-yo performance, not helped by the previous management’s pivot away from UK SME customers (they claimed the resources required to service them wasn’t worth it) in favour of the biggest spending clients while a Middle Eastern subsidiary experienced problems due to fraud.However, ...

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Manolete

Premier Oil - Jefferies thinks Zama discovery could attract bidder

Speedy Hire - Take profits and sell (February 2014)

Speedy Hire - Tool hire group forecast to increase eps 108% over next three years (September 2013)

Speedy Hire - Introduce stop-loss at 565p (July 2008)

Speedy Hire - Q3 revenue up 43% (April 2008)

Speedy Hire - Prospective PE for 2009 just 9.3 (January 2008)

Speedy Hire - Acquires leading rival (July 2007)

Speedy Hire - Tool hire firmâ€™s earnings forecast to grow 50% over next two years (June 2007)

Speedy Hire - Another in-fill acquisition (December 2006)

Speedy Hire - Substantial acquisition (July 2006)

Speedy Hire - Tool hire firm enjoying strong demand (April 2006)

Speedy Hire - Another chance to take profits (June 2005)

Speedy Hire - Take some profit after re-rating (March 2005)

Speedy Hire - Shares finally break their shackles (January 2005)

Speedy Hire (November 2004)

Speedy Hire - Like-for-Like sales up 11% (September 2004)

Speedy Hire - Now over 280 tool hire depots (July 2004)

Speedy Hire - Earnings forecast to grow 31% in next two years; prospective PE just 9.9 (May 2004)

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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