Three Stocks Under Spotlight: PDG, TMT, GLEN

Three Stocks Under Spotlight: PDG, TMT, GLEN

Pendragon PLC

London Stock Exchange-listed, Pendragon Plc is an online automotive retailer, engaged in the sale of a range of new cars, light motor vehicles, used cars, commercial vans, trucks and other motor vehicles. The group is headquartered in the Nottinghamshire, the United Kingdom. The company has four operating segments, namely: UK Motor (Sales and service), Software for automotive business, leasing services with high Return on Investment due to consistent supply of used vehicles driving profitability, US Motor (Sales and Service). Teleios Capital Partners GmbH, Odey Asset Management LLP and Schroder Investment Management Ltd. are the major shareholders in the company. (Source: Thomson Reuters).

Recent News

The company is expected to announce its interim results (H1 FY19 period ended 30th June 2019) in mid-September 2019.

Financial highlights for FY18 period ended 31st December 2018

The company’s revenue plunged by 2.4 per cent to £4,627 million in FY18 in comparison to that in previous year. This can be attributed to declining sales of new cars. However, used car market is doing well and delivering good margins for the company. The company’s gross profit declined by 0.4 per cent to £550.5 million in FY18 in comparison to the corresponding previous-year period. The company incurred an operating loss £14.4 million in FY18. The company’s loss before tax stood at £44.4 million in FY18, while the company’s loss per share was recorded at 3.6 pence per share. The underlying PBT (Profit before tax) was down by £12.6 million, due to declining new car sales and investments in new car stores. The company’s net debt was recorded at £127.6 million in FY18, which was at similar levels in comparison to the prior-year period. The company proposed a final dividend of 0.7 pence per share. The company expects the revenue from used car segment to double by 2021.

PDG Share price performance

While writing (as on 14 August 2019, at 10:56 AM GMT), PDG shares were trading at GBX 11.04 per share, up by 3.75 per cent as compared to the previous day’s closing price level. The company’s market capitalisation was around £148.82 million.

In the last 52-weeks, PDG shares have registered a high of GBX 28.90 (as on 01 November 2018) and a low of GBX 10.00 (as on 13 August 2019). At the current trading level, its shares were trading 61.79 per cent below the 52-week high price level and 10.4 per cent above the 52-week low price level.

At the time of writing, before the market close, the stock’s volume stood at 508,080. Stock’s average traded volume for 5 days was 613,878; 30 days- 672,798.20 and 90 days -981,295.66. The company’s stock beta as on date was 0.41, which makes it less volatile as against the benchmark index.

The average traded volume for 5 days plunged by 8.76 per cent as against 30 days average traded volume. The shares of the company (at the time of writing) were below the 60-days’ and 200-days’ SMA, which shows a negative trend in the stock price movement.

In the past 1 year, PDG shares have delivered a negative return of 59.16 per cent. Also, on a YTD (Year-to-Date) basis, the stock plunged by approximately 52.71 per cent and was down by 54.72 per cent in the last three months.

Share’s RSI (Relative Strength Index) for the 30-days, 14-days and 9-days was recorded at 31.76, 30.14 and 29.26 respectively. Also, the stock’s 3-days RSI was recorded at 27.78.

The company has been consistent in paying dividends to investors. In the last seven years, the company’s highest dividend yield has been of 6.67 per cent (FY18), while its lowest has been of 0.57 per cent (FY12).

TMT Investments PLC

TMT Investments plc invests in the technology, media and telecommunications (TMT) sectors. The Company aims to create value for shareholders, primarily through appreciation of capital, by tapping opportunities in the TMT sector. In addition, the company provides funding to private entities in form of equity and related instruments or convertible loans for investment capital to facilitate their development, consolidation or acquisition.

Financial highlights for FY18 period ended 31st December 2018

The company’s gain on investments stood at US$22,168,230 in FY18 as against US$16,509,456 in FY17. The company’s operating profit surged to US$19,437,934 in FY18 as against US$14,871,667 in FY17. The company’s NAV per share stood at US$3.09 in FY18 as against US$2.43 in FY17. The company has current cash reserves of US$22.2 million.

TMT Share price performance

While writing (as on 14 August 2019, at 11:13 AM GMT), TMT shares were trading at USD 5.50 per share; surged by 31.91 per cent as compared to the previous day’s closing price level. The company’s market capitalisation was around $137.17 million.

In the last 52-wks, TMT shares have registered a high of USD 5.50 (as on 14 August 2019) and a low of USD 1.95 (as on 11 December 2018). At the current trading level, its shares were trading at a new 52-week high price level and 217.94 per cent above the 52-week low price level.

At the time of writing, before the market close, the stock’s volume stood at 829. Stock’s average traded volume for 5 days was 4,714; 30 days- 4,962.10 and 90 days – 4,721.81. The company’s stock beta was negatively corelated against the benchmark index.

The shares of the company (at the time of writing) were trading above the 60-days and 200-days SMA, which shows a positive trend in stock price movement.

In the past 1 year, TMT shares have delivered a positive return of 115.29 per cent. Also, on a YTD (Year-to-Date) basis, the stock surged by approximately 125.03 per cent and was up by 47.14 per cent in the last three months.

Share’s RSI (Relative Strength Index) for the 30-days, 14-days and 9-days was recorded at 80.51, 87.84 and 91.32 respectively. Also, the stock’s 3-days RSI was recorded at 97.68.

Glencore PLC

Glencore Plc (GLEN) is among the world’s leading diversified natural resource companies, engaged in the business of production and distribution of minerals and metals, crude oil and oil products, coal and agricultural products. The company currently operates in more than 50 countries and has an employee base of 158,000, including contractors. The company is currently managing over 150 mines across the globe.

Recent News

On 25th October 2019, the company will announce the third quarter production update of the financial year 2019.

Financial Highlights (H1 FY19, US$ million)

In H1 FY2019, the company’s adjusted EBITDA was down by 32 per cent to $5.6 billion as compared with the corresponding period of the last year. Net income attributable to equity holders decreased by 92 per cent to $0.2 billion against the $2.8 billion in H1 FY18, due to the impairment charges in the African copper and Chad oil portfolios and lower average period-on-period commodity prices. Adjusted EBIT stood at $2.2 billion, a decrease of 56 per cent from the previous year same period data. Basic earnings per share declined from $0.19 in H1 FY18 to $0.02 in H1 FY19. Funds from operations reduced by 37 per cent to $3.5 billion against the $5.6 billion in H1 FY18, driven by a decrease in commodity prices and operational challenges in African operations.  Cash generated by operating activities, before working capital changes, stood at $5.4 billion, a 21 per cent decline against the same period in 2018. Net purchase and sale of property, plant and equipment surged by 7 per cent to $2.2 billion as compared with the corresponding period of the last year. On 30th June 2019, net debt to adjusted EBITDA was 1.24x, an increase of 33 per cent against the 0.93x at 31st December 2018.

The company is expected to close its Mutanda mine for minimum of two years from the end of 2019, due to the impact of lower cobalt prices as well as the new mining code. The company hopes to increase production at its Katanga mine in the country, which has suffered from operational and maintenance problems.

GLEN Share Price Performance

On 14th August 2019, at the time of writing (before the market close, GMT 9:30 AM), Glencore PLC shares were trading at GBX 234.15 and a declined by 0.85% against the previous day’s closing price. Stock’s 52 weeks High and Low is GBX 343.90/GBX 220.36. The company’s stock beta as on date was 2.07, reflecting the higher volatility compared to the benchmark index.

Comparative stock price chart of PDG, TMT, GLEN

(Source: Thomson Reuters)