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Superglass - PE of 4 and yield of 11.3%

December 2008

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:
  • SPGH
  • Price:
  • 30p
We think in coming months Superglass will be a moneyspinner and one of the few companies to report that profits are going to be ahead of expectations. In particular, we think it will be helped by Alistair Darling's pre-budget report to provide £100m of new money and £50m of brought forward money to help people insulate their homes. As results for the year to 31 August demonstrate, Superglass is one of only three suppliers of glass wool insulation (as opposed to foam based), which is a preferred product for domestic cavity and wall insulation and has a c.23% market share. For 2008, there was a 7% decline in sales to £41.1m but in an operationally geared business and with the impact of higher energy costs, this resulted in operat ...

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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.

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