Updates

Michelmersh

January 2024

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.

Within a tough construction market, brick manufacturer Michelmersh continues to perform well with trading remaining resilient. According to broker Canaccord, pricing is still firm, input costs are stabilising and Michelmersh is operating at full capacity to deliver against its diverse forward order book. Thanks to it being the leading producer of UK premium clay bricks (a niche market), visibility of future work is still good. Based on Canaccord’s unchanged eps forecast for eps of 10.7p next year, the shares trade on a prospective PE of just 7.9 and dividend yield (dps: 4.5p) of 3.8%. The broker’s price target is 180p. I am a strong holder. ...

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2024 New Year NAPS - 10 selections

Loungers - Strong trading delivers new upgrade

Michelmersh - Dividend yield 4.9% and NAV per share of 98p suggest material under-valuation (October 2024)

Michelmersh Brick - Three “reverse profit warnings” in two years! (May 2024)

Michelmersh (November 2023)

Michelmersh (May 2023)

Michelmersh - Significantly eps enhancing acquisition (February 2023)

Michelmersh (November 2022)

Michelmersh (June 2022)

Michelmersh Brick - Manufacturer of premium bricks beating expectations (February 2022)

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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