Please suggest any stocks that are currently on Low P/E's for the current and forward figures :

Rules for suggestion :

1/ Current year PER (Price to Earnings Ratio) of less than 12 times.
2/ Foward (next year) PER of less than 10 times.
3/ Market cap of over 10m GBP.
4/ No Profit Warning or similar bad news in the past 9 months.
5/ Pls indicate if the company has debt and what their cash in bank position is.
6/ Pls indicate whether they are presently cash flow positive from operations.
7/ Pls include the latest broker forecasts and all other information in the suggestion.



*** Things to remember as the P/E ratio can be misleading ***

a/ Stocks with low a P/E might have very high debt levels - which can be crippling.
b/ Stocks with low a P/E might have had recent bad news, still being/to be priced in.
c/ Stocks with low a P/E might be suffering bad sentiment due to ongoing issues/problems/past problems/projected future problems.
d/ Is the company "cash flow positive" from operations, if not then it means they are draining away their cash presently.
e/ You need to balance for yourself the debt/cash/cash generation aspects, this is the key to finding the stocks that could/will "please" the markets, and those that will remain "unloved".
f/ A company with a significant amount of cash in the bank has a lower EV weighted PER than the headline figure, if you work out EV (Enterprise Value), which is market cap minus cash, then work into that the earnings figure. (In the above chart both MWE and RCG have significant cash balances and so their EV PER is lower than the headline figure above, however, this again needs to be weighted against cash flow positive or negative from operations i.e. is the cash lump sum growing, or being used up ?)

Go for PEGs less than 0.75 IMO. ;-)))))))

FAN, ATCG & EDD looking good then Big Al??

I was in FAN and it continued to fall so I got out.


Even the fundies might be wrong so always have a stop

andysmith, I will have a look this weekend.

LOQ, should be worth a look. Could be a good riser for next year if anyones intrested in looking ahead.

What I noticed with FAN is that rise from 100p to 115p was on relatively low volume after the recent statements reporting strong trading and then fall back again as some profit-taking and then the market wobble was also on relatively low volume. The forward PE & PEG is low. This stock reminds me of CCT when I tipped it at <50p two years ago, the sp didn't really get moving despite good forward projections until the results were posted and then the rapid rise took off, I sold along the way at x2.5, x3.5 and 4bagger!! Hoping for double money with FAN.

Updated

Low PE. Have a look at CART. PE <5

Was at 1223+p but dropped after death of CEO and failed attempts at contracts and reduced profit warnings.

Dropped to below 60p and I bought again at 58p before its recovery occurred, although I had been daft enough to hold on the way down.
I bought again on Friday at 124p.

I thought the value of the share was above 350p based on existing contracts and projected results.

I think on recently announced contracts suggest a price in advance of 350 or even higher.

Projected dividend 2.5p


BUT DYOH

Hi Fred, but my rule 4 is "No recent profit warning or similar bad news in the last 9 months".

Which tends to rule out the high profile crashes like CART, SMC, WNG etc.

Recent RNS more promising. But sentiment is/was against share. I w/s.

From a look at the charts the following stocks appear pointed up and moving :

AHT, ATCG, EDD, LEAD, TRI, WHI

Will be interesting of all the stocks which ones manage the best gains during September.

From the picks in the header, BVM and FIO have their results out this coming Wednesday the 5th, so a chance to see their performance and outlook.

I am going to add

SmartFocus.

EPIC : STF

Price 18p

Current year forecast EPS 1.4p = PER x12.8

Forward forecast EPS is 2.4p = PER x7.5

No long term debt (repaid in H1 its said)

Results due 25th September.

Last trading update is linked below :

http://www.investegate.co.uk/Article.aspx?id=200707230822496670A

Updated :

Added : SQS, STF, HOR + (APG to pending as no forecasts)

Results to look forward to this week are ATCG and STF.

Good to see three stock on list that I have shares in EDD, FIO and RNWH and another i'm following ATCG. I use pretty much same rules for picking company's, will be looking at some of the other company's listed and may have a few new ones.

Like the thread, great idea.

Updated with :

UVEL forecasts added.

GETM added.