Updates and Ideas

Styles & Wood - Cash of Â£8.7m after debt for equity swap

November 2009

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.

Sometimes you hear odd stories of contracting firms taking on business during a downturn at zero or even negative margin and you might wonder what that's about. The situation is often explained by the fact that most contracting firms operate with negative working capital and pay their own sub-contractors some time later than when they receive payment. During good times the cash flow will be strong but when turnover begins to fall, cash flows out and borrowings balloon. The problem can also be exacerbated as customers think there is a danger of the firm collapsing, thereby reducing the number of contract awards and at the same time suppliers tighten credit terms. This situation is exemplified by Styles & Wood (STY; 27.5p), whic ...

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RCG Holdings - Prospective PE barely 3 despite share price rise

Northbridge Industrial - Middle East expansion

Styles & Wood - Prospective PE of 5.8 and company says trading going strong (July 2017)

Styles & Wood - Eps forecasts upgraded to 54.4p and 59.4p (February 2017)

Styles & Wood - 16% upgrade to eps forecasts (October 2016)

Styles & Wood - Shares hit 430p during the month (July 2016)

Styles & Wood - Broker estimates it will have its complete market cap. in cash by 2020 (June 2016)

Styles & Wood - Eyewatering drop in net debt from £11.4m to £1.4m 221.5p (May 2016)

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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