Wednesday, February 20, 2008
A couple of shares to keep an eye on
Two shares I am looking at quite closely at the moment.
Two software companies there. Both are growth companies. Bond International trades at 138p to buy, versus a 2007 forecast of 16.4p and a 2008 forecast of 18.2p. That's a ten percent growth rate but a P/E of 8.4. Too cheap. There is considerable risk to earnings if employment takes a hit though, as it would be expected to in a slowdown.
Statpro on the other hand is expected to make 6.9p in 2007 and 8.3p in 2008. Much higher growth (20%) but at 86p to buy, a higher P/E ratio too, of 12.5. Statpro is considered to have better earnings and a strong customer base. The disparity between growth and P/E is widest at Statpro, which suggests is the cheaper share.
Both are cracking companies, whicever way you look at it though.
The Artful Dodger
- Bond International (LSE:BDI), the recruitment software specialist
- Statpro Group (LSE:SOG), asset management software specialist
Two software companies there. Both are growth companies. Bond International trades at 138p to buy, versus a 2007 forecast of 16.4p and a 2008 forecast of 18.2p. That's a ten percent growth rate but a P/E of 8.4. Too cheap. There is considerable risk to earnings if employment takes a hit though, as it would be expected to in a slowdown.
Statpro on the other hand is expected to make 6.9p in 2007 and 8.3p in 2008. Much higher growth (20%) but at 86p to buy, a higher P/E ratio too, of 12.5. Statpro is considered to have better earnings and a strong customer base. The disparity between growth and P/E is widest at Statpro, which suggests is the cheaper share.
Both are cracking companies, whicever way you look at it though.
The Artful Dodger
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