Updates

Cape - Iffy contract triggers Â£14m charge

July 2012

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.

After seemingly recovering from a difficult period last year Cape has suffered another setback, this time involving delays to an LNG contract in Algeria, which it now estimates will cause a one-off Â£14m charge against current year profits in respect of current and future losses. Analysts at Canaccord have reduced their current year eps forecasts by 22% to 37.7p and pretax profit from Â£74.3m to Â£60m. They believe that as part of the contract review process Cape will have reviewed all major contracts and found this one to be the only problem. But this is the second blot in its copy-book in successive years and the old adage is that â€œprofit warnings come in threes.â€ Indeed, the risk now is that incoming chief executive Joe Oatl ...

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TMI Trader Portfolio - July '12

Cape - Shares continue sharp rally (November 2012)

Cape (September 2012)

Cape - Propsective PE: 8.2 (May 2012)

Cape - Shares bounce by 130p (March 2012)

Cape - Sell off ocer-done; forward PE now 6.6 (January 2012)

Cape - Industrial services firm eyes huge LNG opportunity (October 2011)

Cape - Shares soar over Â£5 (May 2011)

Cape - Gain to date: 314% (February 2011)

Cape (October 2010)

Cape - Big upgrades to eps forecasts (April 2010)

Cape (February 2010)

Cape (December 2009)

Cape - Gain approaching 150% (November 2009)

Cape (August 2009)

Cape - Collins Stewart raises price target (July 2009)

Cape - Strong demand profile means shares are dirt cheap on PE of 3.3 (May 2009)

Cape (November 2008)

Cape - Price target lifted to 386p (July 2008)

Cape - Shares re-rated after forecasts upgrade (May 2008)

Cape - Industrial services firm with huge (March 2008)

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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