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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Secondary Recommendation

Lavendon - Trades on unjustified discount to rival firms

September 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:
  • LVD
  • Price:
  • 181p
One sector, which has ridden this year's bull run with great elan is tool and equipment hire, with shares such as Ashtead,689p and Speedy Hire, 59p now sporting generous prospective PEs of 18.5 and 19.8 respectively. But it's often the case that a sector re-rating is fairly uneven in the early stages of a new cycle and one firm that has largely missed out on the rally is Lavendon, a leader in the provision of powered access equipment, whose prospective PE is still just 13.5x. However, Lavendon looks even more under-valued when you consider that its market value is just four times its annual cash flow, reflecting a very conservative approach to depreciating its ...

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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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