Primary Recommendation

Aldermore - Fast growing challenger bank on dirt cheap prospective PE of 6.7

March 2016

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.

Aldermore is amongst the new breed of challenger banks that operate without big branch networks and have been winning market share from the big five of Lloyds, RBS, HSBC, Barclays and Santander. Its main areas of business are residential & commercial mortgages and asset finance. It differentiates itself by appealing to creditworthy customers turned away by those mainstream lenders because they fail automated credit scoring systems. Typically the “computer says no” because they recently moved jobs, have multiple income streams or are self-employed, but Aldermore’s cautious manual underwriting has ensured that arrears are low, while a lack of competition means its business is highly profitable.The company is gro ...

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Bovis Homes - House builder targets 50% increase in output; price target 1588p

Aldermore - Cost to income ratio improves to 45% (October 2016)

Aldermore - Shares dirt cheap on prospective PE of 7.7 (April 2016)

Aldermore - NIMâ€ˆjumps from 3.3% to 3.6% (October 2015)

Aldermore - Fast growing challenger bank filling gap in lending market (May 2015)

Allied Gold (March 2012)

Allied Gold (September 2011)

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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