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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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DX Group - Moves to remove Chairmen could put both shares “in play”

December 2022

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:
  • DX.
  • Price:
  • 23.75p
After an 11 month suspension the shares have resumed trading with results for the year ended June expected in the second half of November. With DX Freight continuing to make strong progress, supported by the successful expansion of Parcels, FinnCap forecasts EBIT profit to increase from £16.7m to £24.8m for new eps of 2.8p. The broker expects EBIT to rise again to £29.9m and £34.4m for eps of 3.4p and 4.0p for this financial year and next, dropping the prospective PE to 7.0 and then 5.9. That looks low given the strong forecast growth and net cash of £27m, while FinnCap’s target price is 57p. The elephant in the room is of course the whiffy corporate governance smell following the botched resurrection of an internal corruptio ...

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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.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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