Primary Recommendations

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.

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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Essentra - Outperforms early in a new cycle

DX Group - Bid agreed; gain 161% (January 2024)

DX Group - Possible 48p-a-share offer (November 2023)

DX Group - Acquisition of 15 Tuffnells sites heralds step change in growth prospects (September 2023)

DX Group (March 2023)

DX Group - Moves to remove Chairmen could put both shares “in play” (December 2022)

DX Group (August 2022)

DX Group - Liberum upgrades price target to 55p (December 2021)

DX Group (October 2021)

DX Group - FinnCap raises price target to 51p (July 2021)

DX Group - Third upgrade since last November (April 2021)

DX Group - Trading materially ahead of expectations (March 2021)

DX - Trading Materially Ahead of expectations (January 2021)

DX Group - Parcels shipper benefiting from Covid related pre-Christmas surge (December 2020)

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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