Just a quick update on a stock which featured in my December Advent calendar as a Christmas cracker or a turkey?
Well the stock concerned Character Group (CCT) has had an update in which they said their turnover so far this year is up by 28% versus last year and this compares with forecasts of around 10%. On the back of this they have said that they remain confident that the Company can deliver another year of solid progress, resulting in achieving at least current market expectations for the year ending 31 August 2015. The stock is up again today and has risen by about 20% since I wrote about it (see chart at the end). However this one operates in the toy industry which can be quite fickle with fads and fashions. As a result they have had a volatile history, but currently seem to be on a bit of a roll, so certainly not one to buy and forget if you decided to play it, as they could well come crashing back down at some point in the future.
Having said that they still look reasonably cheap on around 8.6x with 2.5% yield although that is now towards the lower end of what I normally like to see. This however is based off of current forecasts which they say they can at least achieve. So I guess some brokers might upgrade given this update.
If you are wondering how I came up with some of the interesting stocks that I write about, they often crop up in my Compound Income Scores which I have been using successfully for some time. This one still comes out near the top of the list as it scores well on most of the metrics I use. I quietly launched these this week as a service to readers. These have been updated again and you can read about them here if you missed the launch and that is of interest to you. Have a great weekend and see you next week for another roller coaster week in the market.