They have bought a Chinese manufacturing outfit,watch for profitability announcement and then 50p easy
Up 13% today at 42.5

Shagger

Even to this untrained eye the chart looks interesting + Director buy this week

It look so attractive....

Buy Stadium Group at 86.5p (tipped on 15/9/2005 - wrong tip - now 58p)
From top share tipping service, Watshot.com

Stadium Group (SDM) now concentrates on the provision of a very wide range of products mainly associated with power handling for the automotive, industrial, consumer and telecommunications sectors. It is one of those companies which joined AIM from the Official List, because the board got fed up. Fed up with what a stronger pound than it had been used to was doing to its plastic and electronic assembly markets. Fed up with Stock Market indifference. Fed up with being unable to sell abroad, and seeing its margins at home under endless pressure.

So in March 2001, in the wake of the acquisition of a consumer electronics business in the Republic of China, the former head man of the electronics division, Nigel Rogers, became Group Chief Executive, and instituted a strategic review. Given the background it is perhaps no surprise that he concluded that everything in the company's considerable bag of tricks, except electronics, should be disposed of; that the seven UK plants in the latter sphere should be rationalised; and that this exercise should be carried out with a view to supporting the Chinese facility, and turning it into a world-class business.


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Stadium Group as previously constituted contained a lot of elements which - rightly or wrongly - investors do not like. Apart from the plateau which the earnings had reached, and the long-term global threat to UK manufacturing, the group was both a rather untidy mix, and a small bit player in large markets. A bit old fashioned in other words. But there were old-fashioned virtues too - like making money and paying dividends. But much blood was be shed and investors knew that they were unlikely to be spared. And it was a bad time. China was not then everyone's idea of a good place to have one's assets, and there were fears of a world recession.

The full-year figures on commencing the tackling of the job - those to December 2001 - showed an 8 million pounds loss, no joke even if by ignoring exceptional items and goodwill amortisation there was still a real net profit - 500,000 pounds - and albeit that a dividend, a halved dividend, was still an evident indication of confidence. But these figures were soon dated as the post balance sheet disposals brought in 14 million pounds. The pro-forma gearing was now down to 40%, as the company locked on to the task of squeezing more from its considerable electronics turnover. There was plenty of scope, as turnover had topped 24 million pounds - the reward for which was an operating margin of just over 1%.

So did the gamble come off? Yes. No. Maybe.

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Yes, because Stadium Group is now a stable and expanding entity - gearing at the 2004 year end was a trifle over 10% - and the earnings per share have been steadily advancing, having weighed-in at 7.3p (adjusted for a small exceptional item and for goodwill amortisation) against 5.3p for the previous year. And no? Well the shareholders have seen the steady advance of the enterprise stall for about a year now, at least in terms of share-price movement. And that maybe? Read on.

Asian sales growth means that by last year two-thirds of the sales in this key division (70% of group total: and 70% of operating profit) came from this source. Turnover so sourced was hit by by the dollar/sterling equation, but in local currency, grew by 23%. Branded plastics the remaining 30% on both counts was static but is still expanding its Far Eastern sourcing. The forecast is for earnings per share of almost 8p this year, and with the shares at 86.5p this would mean circa 11-times earnings in prospect. There should be a fine 4% yield too. The interim statement on 5th September confirmed a 4% increase in turnover to 18.05 million pounds, a 34% increase in pre-tax profits to 1.34 million pounds and a 10% increase in interim dividend to 1.1p.

There are counter-factors at work. Generally, the makers of unconsidered trifles fail to set the investment pulses racing, and good management has to toil in the semi-darkness as the spotlight falls on this or that modish target; and this has happened to Stadium Group I fear. And talking of darkness, the tracer bullets which are hitting many a target right now I fear are coming from a black hole if there ever was one, companies' pension-fund actuaries. This blemished my last hot tip, and I expect that there will be something in the half-year report about an update on how this affects Stadium Group. But everybody's life goes on, not just those of the pensioners - and I expect Stadium to exceed market estimates and break new ground within the next 12 months - go to 110p indeed. Buy.

I see Brewin Dolphin Securities had forcast earnings of 7.07 eps as recently as 16-02-06 - todays rise to 7.6p ought to have both surprised and pleased everyone. Taking that into account and also the yield of 6% and a price of 60p seems a little miserly!

WATCH: Stadium Group (SDM) acquires United Wireless Ltd


Click the link below to listen

A reassuring pre‐close trading update. The Group’s expanding Technology Products division, which launched more than thirty new products last year, the majority of which were designed-in, highly customised solutions for blue-chip customers: looks very interesting.

Read more at http://tinyurl.com/qhtdxok

Four new arrivals on AIM in July. The newcomers included a fascinating social media business from Myanmar which already boasts 1m users.

Other new arrivals included an estate agency and professional fee funding business. Our Blog offers more information on this interesting bunch.
See more at: http://www.investorschampion.com/blog/

Remember to use our updated AIMsearch search tool to discover which AIM companies benefit from the valuable tax benefits at http://aimsearch.investorschampion.com/

Stadium Group announced encouraging interim results for the six months ending 30th June 2015. The most promising aspect is the growing influence of the Technology Products division.

See more at: http://tinyurl.com/p9jofj2

Taken a big hit today.