This company sells at a ridiculously low price earnings ration of less than 12, it has tripled in price in the last 12 months and is extremely good value at 200p. It has been backed by the both Investors Chronicle and Shares magazine as a strong buy. The technical fundamentals from a charting viewpoint are second to none. The company is is the fast growth sector of childrens toys.

http://tallglic.blogspot.com/

Final Results.

RNS Number : 9285S

Character Group PLC

29 November 2011

The Character Group PLC

designers, developer and international distributor of toys, games and giftware

Issued by Citigate Dewe Rogerson Ltd, Birmingham

Date: Tuesday, 29 November 2011

Embargoed: 7.00am

Preliminary Results

for the year ended 31 August 2011

-- Group Sales up 11.4% to GBP94.95 million (2010:GBP85.23m)
-- Group Profit before Tax up 19.8% to GBP9.05 million (2010: GBP7.55m)
-- Basic earnings per share up 41.5% to 28.47 pence (2010: 20.12p)
-- Final dividend - proposed: 3.00 pence +50%; Total for the year: 6.00p
-- Key ranges performed well in tough retail environment
-- New Product introductions through remainder of this financial year
"The Group's strategy of focusing on brands and licensed products, where the business can bring into play its expertise in character licensing, product & brand development and distribution, has enabled the business to report solid growth in both revenue and profitability."

"Looking ahead, whilst we cannot influence the overall toy industry, and retail spending in total, we believe that by continuing to 'refresh' our product lines at retail and by marketing our products in innovative ways, we shall be relatively successful when compared to the industry as a whole."

"Bearing in mind the tough economic conditions, we have reduced our sales forecasts for the current financial year and taken steps to reduce our total costs accordingly. We expect, however, to continue to be cash generative and provided we see no further deterioration in sales, we also expect to maintain our profitability for 2012 at a similar level to the financial year ended 31 August 2011."

Richard King, Executive Chairman

FULL STATEMENT ATTACHED

Character Group drops 11 percent as the toy and games developer, with licenses for TV characters such as Bob the Builder, says trading during the year has been disappointing, prompting Merchant Securities to cut back its estimates for the firm and downgrade its rating for the stock to "sell from "hold".

"We do not believe the group has the key blockbusters for the current calendar year, which could prevent revenue growth from being achieved in FY13," Merchant Securities says in a note also cutting its target price for Character Group to 119 pence from 170 pence

WATCH: Character Group - Toy industry recognise Character Options - top awards

Click here to watch

Shares - Analysts forecast a 50% upside to a share price of 300p.

Interactive investor - After a terrible 2013, last year was far better for Character Group (CCT). An update earlier this month confirmed that sales in the run up to Christmas were better-than-expected and up 28% in the current financial year. Profit in the year to August 2015 should "at least" hit current forecasts, said the company behind kids' toys from massive hits like Peppa Pig, Minecraft, Teletubbies and Scooby Doo.

Voted Toy Supplier of the Year at the recent Toy Industry Awards, Character had Charles Stanley analyst Peter Smedley running for his calculator. After upgrading forecasts for the next three years, Character shares still trade on less than 9 times forward earnings. It should be more. Says Smedley:

We believe, however, that the company's underlying fundamental momentum is so powerful, combined with both the scope for our still conservatively framed estimates to move up even further in 2015 and the increasing likelihood of significant share buybacks, that a PT of 450p, giving 50%+ upside, is achievable.

Recent broker upgrades result in the shares trading at a seemingly modest 9x forecasts earnings for the year ending August 2015, however we would suggest that this business is about a lot more than boring old earnings per share.

We have analysed the results going back to 2000 and can offer some thoughts. Read more at at http://www.investorschampion.com/research/ or http://tinyurl.com/pq4vlvc

Half yearly report

"Record performance- Revenue, + 24%, Profit before tax +178%, and Dividend +51.5%

30 Apr Charles Stanley 540.00 Buy

ST of IC today -

Target price

From my lens at least, Character's shares are lining up for another assault on the 430p intraday high hit on the day of the half year results at the end of April, a price level that coincides with the all-time high dating back to April 1999. I don't expect the resistance level to hold especially as we could be in line for some earnings upgrades when the company issues a pre-close trading update at the end of the summer.

So, with the shares on the cusp of breaking into blue sky territory, I feel buying now is a smart play and a target price of 525p should be achievable by the year-end, implying 26 per cent share price upside. Even then the shares would only be rated on a forward PE ratio of 11.5 for fiscal 2016. Buy.

ST of IC today - So ahead of the pre-close trading update, I would continue to run your bumper profits. Charles Stanley has a target price of 540p and Allenby Capital has a target of 575p, but I can see scope for both to be raised if Character beats its aforementioned profit estimates. Run profits.

ST of IC today - So with Character's shares rated on a reasonable 12 times' earnings for the fiscal year just ended, and offering a dividend yield north of 2 per cent, I feel there is scope for the share price rally to continue and take-out my 525p target price. Joint house broker Allenby Capital has a target price of 575p, or 15 per cent above the current share price.

Shares - Character's pre-tax profit is expected to rise by 9.8% to £12.1 million in the year ending 31 Aug 2016. Despite this attractive growth pile Character's 2016 price to earnings ratio is a mere 10.8which looks too cheap.

Preliminary results

1 Dec Panmure Gordon 635.00 Buy

ST of IC - New target price

So with Character’s shares trading on 10 times earnings, offering a 2.5 per cent prospective dividend yield, and the board committed to continuing its policy of making earnings accretive share buy backs, then I feel the upside from the Teletubbies toy launch next month is being seriously underestimated by investors.

In fact, having seen the shares hit my target price of 525p ahead of a pre-close trading update at which point I recommended running profits (‘Four small caps with further to go’, 10 September 2015), I now rate them an outright buy again on a bid-offer spread of 480p to 485p given there is almost 25 per cent upside to my new target price of 600p.

Naked Trader today - Moving away from new issues I've added some toy company Character (LON:CCT) shares.

Looks very cheap and with teletubbies going well, could be a decent statement coming soon. The shares tend to do nothing for ages then suddenly re-rate. And they have done nothing for ages!

Timing much to be desire by "naked traded" They could be on a breakout from the resistance, but the Indicators are already at overbought and soon exhausted, meaning that soon should be a better price to buy than the 507.50p.
I suspect some of the fans have already bought in today.

i also suspect that the buying is ahead of results in 3 weeks time

Notice of 2016 Half-Year Results

The Company will be announcing its financial results for the half year ended 29 February 2016 on Wednesday 27 April 2016.