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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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DX Group - Eps to double over three years; prospective PE just 5.3 (ex net cash)

January 2023

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:
  • DX.
  • Price:
  • 27.75p
When I first wrote about parcels and freight delivery business DX at 18p in December 2020, its original eps forecasts were for 0.9p, 1.7p and 3.1p for the years ended June ‘21- ‘23 but after an incredible seven “beats” to analysts’ forecasts, it ultimately achieved 2.0p and 2.8p respectively in ‘21 and ‘22 while an upgraded 3.5p and 4.0p is now expected for FY’23 and ‘24. The shares initially roared to a high of 37p in January 2021 but there was a surprising pull-back after DX went down what I can only describe as an Alice in Wonderland style rabbit hole in which the former chairman botched a corporate governance transgression (a former employee was not correctly disciplined for selling company information to a competitor). Even t ...

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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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