Primary Recommendation

Sports Direct - Very attractive PE of 10 after weather related slow-down

February 2016

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.

Very occasionally investors are given opportunities to make a great deal of money by purchasing growth shares at prices that offer outstanding value, often because of spurious scare stories and / or the occasional stumble.In the case of sports retail giant, Sports Direct, the shares have suffered from a pincer movement, starting with a media focus on its staff being searched daily and subject to a six strike policy. Although founder and majority shareholder Mike Ashley has pledged a modest staff pay rise to soften the PR blow, most recently the company warned that EBITDA for the year ending April 2016 will now be £380m-£420m, a small downgrade on its previous target of £420m, in part due to unseasonal weather. ...

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Ibstock - Supplier of clay bricks benefits from industry wide shortage

2016 NAPS - 10 selections

Sports Direct (September 2017)

Sports Direct - Change of strategy (February 2017)

Sports Direct - Resumes share buy-back program (November 2016)

Sports Direct - Share buyback lifts sentiment (September 2016)

Sports Direct - Big reduction in net debt (September 2015)

Sports Direct - Gross margins jump (September 2014)

Sports Direct (August 2014)

Sports Direct - Founder sells 24m shares (May 2014)

Sports Direct - Bonus targets made tougher (April 2014)

Sports Direct - Gain has reached 105% (February 2014)

Sports Direct - Exploiting huge gap left by JJB's demise (September 2013)

Sports Direct - Two International aquisitions (August 2013)

Sports Direct (June 2013)

Sports Direct - Acquires 114 Republic stores from administrator (April 2013)

Sports Direct - "Super stretch" bonus scheme targets increased (February 2013)

Sports Direct - Aquires plum JJB assets (November 2012)

Sports Direct (October 2012)

Sports Direct (December 2011)

Sports Direct - Net debt more than halved (September 2011)

Sports Direct (June 2011)

Sports Direct (March 2011)

Sports Direct - Take a part profit (December 2010)

Sports Direct - Net debt falls by Â£119m (September 2010)

Sports Direct - Sports retailer beating expectations (March 2010)

Sports Direct - EBITDA to be at least Â£150m (December 2009)

Sports Direct - Take profits (October 2009)

Sports Direct - Shares have rallied well (September 2009)

Sports Direct - Strong sales over festive period (April 2009)

Sports Direct - Largest sports retailer on the mend; PE is just 6.2 (February 2009)

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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