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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Primary Recommendation

Homeserve - Supplier of home assistance policies spots tremendous US opportunity

March 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.

  • Epic Code:
  • HSV
  • Price:
  • 604p
FTSE-250 constituent Homeserve, which sells home assistance insurance policies, is what legendary investor Warren Buffett might describe as an “idiot proof” business. The basic premise is that a homeowner pays a modest amount in “premiums” and in return the company guarantees to send someone round to fix any problems that might arise with their plumbing, heating, electrics or pest control. As a result, the customer enjoys peace of mind knowing that they won’t have to spend hours procuring a reliable tradesman at a time when their house is freezing or dark and their toilets / taps are leaking. It’s a great business to be in because customer renewal rates are over 80% and cash flows are highly predictable and resistant to down-turns ...

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Related Articles

Homeserve - Time to take profits and sell (August 2021)
Homeserve (September 2020)
Homeserve - Gain to date 118% (July 2020)
Homeserve (June 2020)
Homeserve - Gain to date: 106% (January 2020)
Homeserve - Broker price target increases from 1200p to 1350p (July 2019)
Homeserve (June 2019)
Homeserve - Eps forecasts upgraded by 7-11% (January 2019)
Homeserve - Quick 51% gain (August 2018)
Homeserve (May 2018)
Homeserve - US opportunity compelling (January 2018)
Homeserve - Shares hit new high of 803p (August 2017)
Homeserve - Results at upper end of expectations (June 2017)
Homeserve (January 2013)
Homeserve - Introduce stop-loss of 201p (May 2012)
Homeserve - Results bring some respite (January 2012)
Homeserve - Mis-selling hits share price (December 2011)
Homeserve - Customer retention still high (November 2011)
Homeserve - Results push shares to high (July 2011)
Homeserve - Provider of home repair insurance eyes strong overseas growth (May 2011)
Homeserve (March 2009)
Homeserve - Shock fall in renewal rates (January 2009)
Homeserve - Renewals holding up (November 2008)
Homeserve - Share price fall overdone (August 2008)
Homeserve - Significant new opportunity in the USA (April 2008)
Homeserve - Large US opportunity (October 2007)
Homeserve - US deal (October 2006)
Homeserve - Take a part-profit (July 2006)
Homeserve - Shares gain 378p in 10 months (January 2006)
Homeserve - Director buying boosts shares (May 2005)
Homeserve - Home assistance firm going great guns (March 2005)

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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