Over the past few years I have saved up enough money that I can afford to lose. I researched quite a bit and have 2 options on the table. I live in the UK, so I will be investing in UK companies only, due to the pound being so weak. I'd love your thoughts on the companies.
Redrow - they build houses in Wales and England
PROS PB 1.4 PB 6.6 Cosistant earnings to date. Debt to equity ratio is 0.59 Netcash 100m No signs of Dieworsification Are planning 10% buyback of shares Undervalued Long term prospects
CONS No insiders are buying 90% institutional ownership Brexit Uncertainty
Flowtech Fluidpower - they do everything regarding hydrolics and hydrolic fluids
-PROS -PB 0.7 -PE 11 -Debt to equity 0.54 -Insiders have bought very recently 20-27 Sept -Undervalued -Niche and boring -New CEO has been with the company 8 years -Long term prospects
CONS -29% drop on the 19th of September (this could also be a plus)? Due to // £1.5m contact being delayed // CEO retiring// operating profit to be "marginally below market expectations" in the near future // brexit worries -87% institutional ownership -Debt Is manageable but net cash vs debt is currently 2.4m vs 24m
Overall I feel redrow is the safer option, but flowtech is at such a low price currently, and the fact that insiders are buying tells me they are confident in the future. I do have resevations about the high level of institutional ownership in both companies. With people panicking about brexit, I fear big investors may panic sell driving the price down considerably.
Cheers!
Submitted November 12, 2018 at 07:37AM by SleepySloths97 https://ift.tt/2PmHt3r
