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4 shares the pros are buying and selling

Our regular roundup of trades by professional investors, featuring FairFX, Superdry, Goals Soccer Centres and Bisichi Mining.

by David Campbell, Selin Bucak on Apr 30, 2018 at 05:00

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Key stats
Market capitalisation£155m
No. of shares out155m
No. of shares floating98m
No. of common shareholdersnot stated
No. of employees66
Trading volume (10 day avg.)1m
Turnover£938m
Profit before tax£1m
Earnings per share0.36p
Cashflow per share0.58p
Cash per share33.44p

FairFX (FFX)

Who’s trading? Richard Bernstein

The trade: The activist investor has reduced his holding in electronic banking and payments group FairFX from 18.3% of the shares to 17.5%, worth £27.2 million at a share price of 100p. Shares are held in his Crystal Amber fund.

How have the shares performed? After a drop in February, FairFX’s shares have been steadily climbing up to 100p, doubled from a 52-week low of 51p.

What does the company say? The company achieved its first ever year of profitability in 2017, posting a pre-tax profit of £229,000 after receiving a boost from two acquisitions. Over the year, it acquired Q Money and CardOne Banking, driving group revenue to £15.5 million, an increase of 52% since 2016.

What’s the outlook? The business had a strong start to 2018, announcing a revenue increase of 85.3% for the first quarter to £4.8 million. Chief executive Ian Strafford-Taylor said: ‘The group has a pipeline of development for 2018 to further boost revenue and operational efficiency and consequently, the board is confident that the outlook for the full year remains in line with market expectations.’

Key stats
Market capitalisation£1,244m
No. of shares out82m
No. of shares floating53m
No. of common shareholdersnot stated
No. of employees3143
Trading volume (10 day avg.)m
Turnover£752m
Profit before tax£125m
Earnings per share80.73p
Cashflow per share125.38p
Cash per share83.09p

Superdry (SDRY)

Who’s trading? Citywire AAA-rated Frank Jennings

The trade: The Oppenheimer global small cap star trimmed his exposure to high street fashion phenomena Superdry from just over 5% of the shares to 3.8%, worth £48 million at a price of £15.26.

How have the shares performed? After briefly climbing to an all-time record of £19.77 at the end of 2017 the shares have slid back into the middle of a range which has defined the last three years.

What does the company say? The FTSE 250 stalwart said last month it was confident the business would meet analyst’s forecasts of up to £100 million in profit when it reports in May, but investors remain cautious about the fickleness of fashion and low margins of recent franchise sales growth.

What’s the outlook? Investors started the year with high hopes for Superdry, which have been dented if not yet dashed as both retail and wholesale growth slowed over the latter half of 2017. Broker Liberum cut the stock from ‘buy’ to ‘hold’ earlier this month and slashed its price target from £18.50 to £16.50.

Key stats
Market capitalisation£55m
No. of shares out75m
No. of shares floating52m
No. of common shareholdersnot stated
No. of employees691
Trading volume (10 day avg.)m
Turnover£33m
Profit before tax£10m
Earnings per share9.21p
Cashflow per share13.88p
Cash per share3.47p

Goals Soccer Centres (GOAL)

Who’s trading? Citywire AAA-rated Giles Hargreave

The trade: Hargreave upped his stake in five-a-side pitch operator Goals Soccer Centres from 4.9% of the shares to just over 5%, worth £2.7 million at a price of 71p.

How have the shares performed? After sliding 73% from a post-2008 high of 236p in early 2015 to an all-time low of 65p in early March, shares in Goals have clawed back a little of their recent losses.

What does the company say? The business points to an ongoing renovation programme as cause of the recent sluggish UK sales which have weighed on the stock, and last year established a 50:50 joint venture with Manchester City’s owners to accelerate its scheduled expansion in North America.

What’s the outlook? Canaccord Genuity last month trimmed its target price from 140p to 130p but remains significantly cheerier than an analyst consensus of 93p. A perennially delayed return on a 2016 cash injection has tested investor patience, as the business began to skirt its loan limits last month.

Key stats
Market capitalisation£10m
No. of shares out11m
No. of shares floating4m
No. of common shareholdersnot stated
No. of employees240
Trading volume (10 day avg.)m
Turnover£37m
Profit before tax£6m
Earnings per share7.02p
Cashflow per share25.39p
Cash per share59.73p

Bisichi Mining (BISI)

Who’s trading? Citywire AA-rated Paul Mumford

The trade: The Cavendish Opportunities micro-cap veteran upped his stake in resource minnow Bisichi Mining from 17.9% of the shares to just over 18% worth £1.7 million at a price of 92p.

How have the shares performed: Shares in South African coal miner Bisichi rocketed almost 20% to a three-year high in late April, having traded sideways-to-down since mid-2015.

What does the company say: In numbers for 2017, the business last month reported adjusted profit almost four times higher than the prior year, up from £1.5 million to £5.8 million, as both site upgrades and a 29% recovery in global coal prices put the company’s accounts on a stronger footing.

What’s the outlook? The recovery in energy prices may be in the rear view mirror but the company is in the midst of converting its UK ex-mining real estate portfolio into a stable source of rental income, smoothing the volatility of commodity earnings, and upped its dividend 20% last year to 5p.

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  • Bisichi Mining PLC (BISI.L)
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  • FairFX Group PLC (FFX.L)
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  • Goals Soccer Centres PLC (GOAL.L)
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  • Superdry PLC (SDRY.L)
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