Updates & Ideas

Capital Group - Growth of higher margin labs business should re-rate shares

July 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.

The fact that the media barely registered the excitement of gold hitting all-time highs of US$2,400 is symptomatic of a world anaesthetised to shocks and uncertainty, but with the prospect of falling interest rates historically a signal for further gains in the precious metal, it could go higher. This development likely bodes well for Capital Group, one of the largest providers of mining services for gold miners. CEO Peter Stokes, who I met with again over the month, suggests its African focus has held the shares back given the perception of higher risks in that region; they trade on a lowly 3x EBITDA, versus 5x for its US and Canadian peers. Capital’s mainstay is the provision of mining services via its fleet of 127 rigs, which ...

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Spire Healthcare - Hospital group benefiting from longer NHS waiting lists

On the Beach - Extremely cheap on ex-cash prospective PE of 5.5

Capital Limited (March 2024)

Capital Limited (December 2023)

Capital Limited - New contract to add US$30m to sales (August 2023)

Capital Limited (June 2023)

Capital Ltd - Mining services firm enjoys buoyant gold market; rising margins not reflected in PE of 6.3 (March 2023)

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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