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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Big Yellow - Rise in housing transactions should lift profits

May 2013

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:
  • BYG
  • Price:
  • 393p
Thanks largely to its strategy of focusing on the more prosperous London and the South where rental yields are higher Big Yellow has established itself as the pre-eminent player in self storage, with its pretax profit rising from £7.8m to £23.6m in the past seven years. But investors may be underestimating the potential for future growth because the business ebbs and flows with housing transactions. As the mortgage market thaws and the Government introduces more aggressive lending schemes, transactional volumes should rise, lifting utilisation within its centres.Co-founder and chief executive Jimmy Gibson, who we met with over the month, highlights that Big Yellow’s growth has been achieved while maintaining low borrowings and ...

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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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