as we have had reasonably positive trading updates from Bellway (BWY) the house builder and Mondi (MNDI) the packaging group which amongst other things produces cardboard boxes. I note that both of these are top decile stocks on the Stockopedia ranking system.
Bellway are talking about 15%+ volume growth and margins approaching 20% although they do talk about volumes being first half weighted. I guess this is understandable given the election coming up and given the rise in house prices we have seen in some areas. So something to watch out for there in the second half. However the shares, which have come back a little since the year end still look good value with a PE of 8.5x and a yield of 3.5% and they still appear near the top of the Compound Income Scores. So it seems there is nothing in the statement to suggest any action is required unless you are worried about a second half slow down.
Meanwhile Mondi seem to have come in slightly ahead of consensus which is for 101c as the basic underlying earnings per share (euro cents) is forecast to be 106-109 (2013 95.0), increasing between 12% and 15%. These shares have done quite well being up by around 20% since I wrote them up last April. This leaves them looking more fairly valued now on around 14.5x with a 3% or so yield and a 6% earnings yield. This leaves it just outside the top quartile of the Compound Income scores so OK, but may be not worth chasing up here given a strong rally recently has left them looking overbought in the short term. However I note there has been some corporate activity in the sector recently so maybe investors are anticipating some action here too?