its in an upward trend expect around 50+ in short term
it is a divident paying company and has show very good growth

do research before you do anything

After comparing TNO with BEG and VTS I have decided to invest in TNO. On fundermentals TNO and BEG seem very alike with low gearing and same yield and cover values. VTS gearing at 76% was a concern in todays climate. The only advantage that BEG have is they are more exposed to insolvency work, but TNO have increased this area by acquisitions and should generate over 20% of business from this area.

When you look at the graphs I noticed that BEG have increased 75% from the low and VTS up 40% with TNO only 10% up on it's low. So they should have some catching up soon.

Certainly need to have some exposure to this sector, with the UK economy looking far from rosy for the next 12/18 months.

Welcome aboard spitfire43, your last sentence was my view exactly several weeks ago, at that time I could have bought BEG around 103p ish & VTS around 95p, however I chose TNO and they have barely moved, so yes some catching up to do hopefully.
2517

Take a look a the gragh for TNO, BEG and YTS below. You will notice that TNO had a dead cross in early 2008 and BEG in June 2007 (50ma moves below 200ma) which is a sell signal. But both now show a golden coss recently (50ma moves above 200ma) which is a buy signal. No such golden cross on VTS yet.

A golden cross can often indicate the start of a long bull run.

If sold in Jan 08 on the dc the sp was around 54p ish, and if bought on the gc May 08 the sp was around 57.5p ish, between the dc & the gc a low of only around 49.5p ish was seen, so may not have been worth selling on the dc, remains to be seen if buying on the recent gc was worth while. Buying the gc of sept 06 was certainly profitable. Thanks for the charts spitfire43, ps I know just a bit more than diddleysquat about charts, wish I knew more. Good luck
2517

I used to know diddleysquart about charts but now trying to learn more, I think they are a good tool for a back up to the fundies. It's typical that as soon as I buy into TNO the sp drops 0.25p, but good volumes today with 62k buys against 3.5k sells.

See article below from the Independent, which isn't that surprising in todays economic environment. Must rub off on TNO at some stage me thinks......

Major credit insurer predicts 20 per cent rise in firms going bust

By James Thompson
Tuesday, 1 July 2008

The credit insurance giant Euler Hermes has upgraded by more than 10 per cent its forecast for the number of UK companies that will hit the buffers this year.


Fabrice Desnos, its UK chief executive, said it forecasts that there will be about 23,400 corporate insolvencies across all sectors in the UK this year, a increase of between 18 per cent and 20 per cent on last year's 19,484 figure.

But just six months ago, Euler Hermes was forecasting that there would only be an 8 per cent increase in corporate failures in 2008 in the UK. The figure compares to a forecast of a 15 per cent increase in corporate insolvencies worldwide in 2008, compared to last year.

Mr Desnos said there were a number of factors behind its gloomy forecast for the UK, such as banks not being willing to prop up struggling businesses, rising inflation and falling supply and demand for goods and services.

"Bank support is more difficult to secure. There is no escape route, you will not find a private equity company or a management buy-out," he said.

"Supply and demand have been hit quite strongly in all directions. The supply of credit has reduced dramatically and essentially from banks." Euler Hermes is the UK's biggest supplier of credit insurance to companies, such as retail suppliers which take out insurance to protect themselves against the risk of non-payment.

In particular, Mr Desnos said that the UK retail and construction sectors would be hit the hardest. "Definitely retail and construction are the ones we are most concerned about. And it is the companies around these sectors, such as in haulage, that will [also] be hit," he said.

Furniture retailers, such as ScS, have blamed the "unexpected and sudden withdrawal of credit insurance from the market", for its financial woes, although many other small to mid-sized retailers have had their suppliers' insurance cover cut.

But he stressed that Euler Hermes is still providing the same amount of cover to companies in the UK as it was six months ago, but hinted that it was being more selective about who it insures and the levels it provides. "We are just trying to pick the winners and losers," said Mr Desnos.

Euler Hermes, which has a 36 per cent share of the UK non-food retail market, has billions of pounds of cover in UK retail and provides cover to tens of thousands of suppliers to trade with non-food retailers.

good trading update today, see below

Tenon Group Plc. said it expects full-year results to be comfortably in line with expectations and that it sees continued progress in growth and profits.

The company, a national adviser dedicated to entrepreneurs, said its acquisitions have been fully integrated and that they were performing well.

Results for the year to June 30 will be announced on Sept. 11.

I see that yesterday Daniel Stewart have started coverage of TNO with a buy rating, no forecast figures yet but will be intersting to see them. I thought the trading update was very positive, so would expect to see some upgrades soon. A positive start this morning up 0.25p with one purchase, how long will it take for the market to catch on.

Have just been looking at BEG results which were slightly down, and the sp fell at first but has since recovered. They said the second half was much stronger than the first, I think the sp is anticipating a much stronger performance, because they are on a current PE = 27, with 21 for 2009 and 16 for 2010. I wish I had brought at 119p, but feel at 166p now, that I missed the boat.

2517GEORGE

Have found the statement released by Daniel Stewart yesterday, makes interesting reading and says gives pretty much the same sentiment as we have. See below -

Daniel Stewart said that having been impressed with Tenon management, it is further encouraged by Thursday's statement. The broker said it believes the company's wide geographic coverage and strong presence in the business recovery market will stand it in very good stead during the ongoing downturn. Daniel Stewart highlighted the discrepancy between the valuations of Tenon -- PE ratio of 8.7 times June 2009 -- and Begbies Traynor Group Plc. -- 20.1 times April 2009. The broker said that whilst it believes the latter is a high quality business that will reap the rewards of the rising number of business failures, the same can be said of Tenon. Daniel Stewart said it does not believe the very significant discount to Begbies Traynor is justified.

spitfire43, couldn't agree more, TNO appears to have been left behind somewhat for the time being, I believe around 25% of TNO income is derived from insolvency work (BEG around 75%). I chose TNO over BEG (107ish at the time) hindsight tells me I bought the wrong one, that said I firmly believe TNO will start the catch-up process soon.
2517

I was playing with some forecast figures, and came up with a EPS of 6.65p for the full year, the consensus is 5.4p. And my figure was without taking account of a increase of insolvency work, I just used past results as a guide. So hopefully we should see some upgrades now.

Must admit I'm considering increasing my holdings, if nothing else I would feel safe holding these after the trading update.

Increased holdings today, the sp seems to be starting to move a tad, well that was before I brought some more.

I noticed that TNO have a strong institutional following with all the top 7 holdings above 3%, and JP Morgan topped up in the past week.

sp still slowly moving up, hopefully the start of a re-rating.

good buying volumes Friday after a buy tip in investors chronicle.

see below an aticle in the Telegragh over the weekend, no surprises really, it just confirms what we know is in the process of accuring.

The number of companies that have been placed in administration in the past three months has jumped 60pc compared with last year, official insolvency statistics reveal.

Business recovery experts said the dramatic rise was a sign that the economic slowdown was taking hold.

They warned of a similar jump in company liquidations by the end of the year when the administrations were wound down.

advertisementThe Insolvency Service said that between April and June there were 3,560 liquidations, up 12pc compared with the first three months of the year and a 15pc increase on the second quarter last year.

Receiverships, often initiated by the high street banks and involving businesses that are at least three years old, have also more than doubled.

Nick Wood, recovery and reorganisation partner with accountants Grant Thornton, said banks and major accountancy firms were gearing up for a significant flow of work in the autumn.

"The negative sentiment expressed in a huge range of economic indicators is now feeding through to the real economy, with businesses that a year ago had been able to paper over the cracks now being fully exposed. Unfortunately, this feels like just the beginning," he said.

Geoff Carton-Kelly, head of restructuring and recovery at Baker Tilly, the accountancy firm, said: We expect about 15,000 company insolvencies in 2008, 20pc higher than in 2007, at a rate of over 280 companies per week.

"A sharp drop in discretionary spending is having a direct impact on the corporate insolvency figures, with pubs, clubs and other leisure companies featuring highly among those companies going in to liquidation as well as property developers and associated businesses who are finding life very challenging in the current environment."

The Insolvency Service said the liquidations represented 0.6pc of all active companies.

TNO up 0.75p, with no transactions, so could be another reason.

I have just checked back for transactions for August, which are 1.1m buys against 0.438m sells so far. So I would hope that the sp is starting to reflect this buying pressure.

Could the sp be on the move now.

Looking at the 1 year chart with the sp at 60p now, we had a golden cross at the end of July, this followed an earlier one at the end of May. The next resistance level is at 62.5p which was in November 2007.

Finals are due to be reported 11th September.

Results released today, at first glance they may not look to exciting but when you look at operating profit which is well up, and adjusted EPS of 6.11p (not including amortisation) against basic EPS of 4.69p. I believe the benefits should be seen this next financial year.

Having said this, I will keep a close year on market reaction to results.

See below...........

Tenon Group Plc., a national adviser dedicated to entrepreneurs, posted a higher pretax profit as turnover rose versus last year.

For the year ended June 30, 2008, the group reported a pretax profit of 12.4 million pounds compared with 12.3 million a year ago while revenues increased to 160.3 million from 136.7 million.

'With our financial and management strength we are very well placed to take advantage of the opportunities we expect to arise in the current market conditions and to continue to invest in the future of our business,' chief executive Andy Raynor said in a statement.

He added the company remains very ambitious for increased market presence, greater sales focus and further acquisitions.

Tenon Group also recommended an increased dividend of 1.4 pence per share, up 17 percent from the 1.2 pence paid in 2007.

See broker comment below.........

full-year results which prompt both Charles Stanley Securities and Numis Securities to reiterate their "buy" recommendations. Charles Stanley says the results, which came in ahead of its expectations, may prompt modest upgrades after the analyst meeting. The broker has a 75 pence target price on Tenon. Numis notes that Tenon's 19 percent increase in underlying EPS to 6.1 pence surpasses its expectation of 5.6 pence. The broker says it expects to increase its forecasts by about 7 percent, and has increased its target price to 81 pence from 77.

Article from todays Times. see below...............

There was a time when Tenon, the tax advisory and corporate restructuring specialist, looked sorely in need of its own services.

After a period of vigorous expansion it was one of three AIM companies floated at the turn of the decade to consolidate smaller accountancy firms it was left with debt four times that of its stock market value and a 114 million post-tax loss. But over the past five years it has got to grips with working capital, paid down debt and consistently produced double-digit gains in sales and profits.

Those virtues were on display in yesterdays full-year results: turnover up 17 per cent, earnings up 19 per cent, the dividend raised 17 per cent and net debt down to 9.1 million. Revenues from corporate finance rose 62 per cent: a figure to put investment banks to shame.

That strength will be difficult to sustain, as will Tenons so-far resilient sales of personal financial services. The counterweight is provided by the recent growth through acquisition of its corporate recovery practice where revenues are running at 40 million, making Tenon the same size as the better-known Begbies Traynor, and giving it ready leverage to economic downturn. The recent retrenchment of Grant Thornton and BDO Stoy Hayward from its niche advising private entrepreneurial companies should also help.

At 58p, up p, or eight times this years earnings, buy on weakness.