Secondary Recommendation

Swallowfield - Personal care brands could trigger supercharged re-rating

July 2017

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.

Shares in recent issue, Warpaint, 289p, which sells value-for-money colour cosmetics, have come spectacularly to life, rising from a float price of 97p to the current 403p as investors warm to the sudden clamour for affordable eye products and face make-up. Warpaint now trades on a princely prospective PE of 30.7 for FY17 but we feel it’s stardust might galvanise shares in TMI favourite, Swallowfield, which operates in the related areas of skincare, bathing and bodycare, complementing a legacy contract manufacturing business. Like Warpaint, Swallowfield has also gone into overdrive but we believe it’s at just the start of the race. Latest forecasts expect eps, which had stood at just 6.5p in the year ended June 2015, to reach ...

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UP Global Solutions - Household brands owner to increase eps from 7.1p to 13.6p om three years to 2019

Eddie Stobart - Trucking business expanding into e-commerce market

Swallowfield (June 2019)

Swallowfield - Personal care brands to reach 70% of enlarged profit by 2020 (November 2018)

Swallowfield (September 2018)

Swallowfield - Price target rises 20p to 390p (April 2018)

SWallowfield - Shares spike to over £4 (December 2017)

Swallowfield - Shares spike to new high (April 2017)

Swallowfield - Brands division to drive eps from 6.5p to 27.5p between FY15 and FY19 (February 2017)

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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