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XL Media - Has paid US$21.5m in dividends in 22 months but is still unloved

February 2016

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:
  • XLM
  • Price:
  • 62.75p
Ahead of reporting in March, XLMedia said that FY15 ended with a bang and it expects to exceed even the recently upgraded expectations with sales of at least US$88.6m and adjusted pretax profit of at least US$25.9m. This represents an astonishing jump of 74% and 73% respectively on last year’s numbers.  Cenkos forecasts a further climb to US$30.2m this year for eps of 11.3 cents. Strip out the massive cash pile and the shares trade on around 7x forecast eps. But in light of a share price that still fails to reflect XLM’s consistently strong financial performance, which has allowed it to pay US$21.25m in dividends in the 22 months since IPO, a period in which EBITDA increased by 112% and the business has been substa ...

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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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