If you have been following my posts you should have had today in your diary and also you cannot fail to have missed it in the media that today is the day when Super Mario has to come up with the goods, or rather Euros, to avoid upsetting investors everywhere. The latest thinking seems to be that they will announce €50 billion a month starting in March until the end of 2016 perhaps to give a total of €1.1 trillion. Whether this will be the case and if it does any good or not I guess we'll have to wait and see at 1.30 pm UK time today and beyond.
Otherwise today a couple of stocks that I have covered here in the past put out updates / results. Firstly there was the software provider to the healthcare industry EMIS which gave a trading update saying they expect to be in line with their expectations and that they are confident about the outlook for EMIS in 2015.
That all sounds good so lets see how its done since I first did a check up on it back in March 2014, see link for original write up, or the category list here for updates since then. Well not too bad as you will see from the graph below which has seen the shares rise from their depressed 600 pence level to their current 836 pence or so today for a rise of nearly 40% against a fairly flat market over the same time period.
This has been achieved on the back of slightly upgraded forecasts 40 pence of earnings and 18 pence of dividend and a more significant re-rating from 15x and 3% to 20x and 2.2% for the current year which makes it start to look expensive in my book, although still good quality. Some mid single digits growth for the current year to December 2015 is forecast which still leaves it on a fairly full looking 19.3x and 2.3%. The EBIT / EV yield is also only currently around 4.8% which combined with the yield puts it in the bottom quartile of value on my CI Scores, confirming my impression that it is starting to look expensive. Otherwise the quality metrics and the earnings revisions trend help to improve its overall score and put it just outside the top quintile. However, given the valuation and more limited growth forecast for this year I wouldn't suggest it as a new money buy and in fact it is only just about a quality hold for me given the rating.
The other stock which reported today is Safestore (SAFE) which I mentioned briefly in passing back in November 2014 when they updated and said they expected to be slightly ahead of the top end of the consensus range. It seems that analysts were too lazy to upgrade as they have today reported earnings and dividends about 4% and 10% ahead.
They seem to be doing well as they seem to be successfully filling more of their vacant space. I am kind of regretting selling this one but hey ho must move on.
Any way that's all for today while we wait like Pavlov's dogs for Draghi to ring the bell on QE in Europe but does it mean that the Euro will be a safe store of value going forward and will investors be in investing Heaven until '17 as a result?
Talking of which reminds me of an appropriate song for Mario Draghi today which appropriately saw Heaven 17 going all Eurotrash and trying to do a Kraftwerk with a track called I'm Your Money. So see and hear the video above which just seems so appropriate for today.