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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Primary Recommendation

Clarkson - Shipbroker sees earnings explode

February 2005

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:
  • CKN
Clarksons, one of only two quoted shipbrokers on the London Stock Exchange, is currently experiencing the best trading conditions in its entire 153-year history. Most of its money is made through commissions based on the value of shipping freight rates, which have gone through the roof in recent years largely thanks to demand from the Far East, most notably China. So it's hardly surprising that Clarksons has enjoyed stellar growth in this period with pretax profit and earnings both expected to have risen fourfold to £18m and 73.9p respectively in the two years ended 31 December 2004.  Based on these estimates, Clarksons is trading on a PE of 9.6, which falls to 7.1 if its net cashof around £30m is stripped out, a miserly rat ...

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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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