Pennant International provides a range of services that extend across e-Learning, Computer Based Training, Emulation and Simulation, Technical Documentation, Media Services, Cartography, Supportability Engineering Software products and related services. I have a holding in my growth portfolio (epic code: PEN)
Since my analysis here back on 4 July Pennant had climbed from 72p to 89.5p and with a strong set of interims in early August, never looked like falling back below 80p - until last week. This caught my attention as there seemed to be little reason for the fall back.
There was an unusual announcement yesterday where the FD John Waller sold 91,875 shares at 72p from his holding of 1,566,875, with the company picking those shares up to be held in treasury. Even if those shares had been sold in the market, management would still have held over 50% of the shares, so I'm at a loss as to why the company felt the need to do this.
Possibly it was this announcement that caused the SP to move down by 3.5p on the day, but either way I saw it as an opportunity and purchased some shares for my growth portfolio at 74p.
They closed today at 74.5p on 10.5x 2014's expected earnings that should be up 57% on 2012. The outlook statement from their recent interims also provides encouragement:
"...The order book provides good visibility through 2014 and beyond. During the period there has been significant ongoing activity with a broad global spread of potential customers on a number of significant opportunities, particularly in the defence and rail sectors.
"The pipeline is robust and active and the Group's good relationships with its customers and strong balance sheet continue to provide a strong platform from which to build and to realize the opportunities arising..."
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