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Primary Recommendation

Homebuy - Flourishing home collected credit business

August 2006

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:
  • HBG
  • Price:
  • 215p
Investors imagine that a business supplying sub-prime consumer credit is a weak one, partly because of its grubby image. That helps explain why an excellent business like Homebuy is modestly rated despite a strong track record of growth and rising profitability. As a result of completing a key deal at the start of last year, Homebuy reported a four-fold increase in pretax profit to £12.5m and doubled earnings per share of 23p and for the current year, pretax profit is expected to climb to £19m for eps of 28.8p, to drop the prospective PE to only 7.5. For various reasons, an estimated 4-5 million of the UK population still do not have bank facilities or are denied credit from mainstream lenders and Homebuy is thriving b ...

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Homebuy (September 2006)

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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