Citywire for Financial Professionals
Share this page:
Stay connected:

 

Citywire printed articles sponsored by:


View the rest of this gallery online at http://citywire.co.uk/money/gallery/a1123209

4 shares the pros are buying and selling

Our regular roundup of trades by professional investors, featuring Proactis, Rosslyn Data, Rockrose Energy and Coats.

by David Campbell, Selin Bucak on May 29, 2018 at 05:00

If you would like to receive news alerts on any of the stocks mentioned, click on the star icons below to add them to your favourites.
Key stats
Market capitalisation£38m
No. of shares out31m
No. of shares floating16m
No. of common shareholdersnot stated
No. of employees67
Trading volume (10 day avg.)m
Turnover£8m
Profit before tax£1m
Earnings per share0.49p
Cashflow per share3.41p
Cash per share8.49p

Proactis (PHD)

Who’s trading? Citywire AAA-rated Mark Niznik

The trade: Manager of the Artemis UK Smaller Companies fund has increased his stake in software company Proactis from 8.5% to 10.4% of the shares worth £11.6 million at a share price of 120.9p.

How have the shares performed? Proactis plunged by almost 40% in one day on 24 April on the back of its interim results. It is down 42% from a 52-week high of 207p.

What does the company say? In August 2017 the group started a restructuring plan, following an acquisition which was expected to deliver £5 million in annualised cost savings. While the pound’s resurgence impacted the company’s performance in the US and Europe, revenue was still up 124% to £26.4 million in the six months to 31 January.

What’s the outlook? In a report following the results analysts at N+1 Singer reiterated their ‘buy’ rating on the stock, with a price target of 189p. Meanwhile analysts at FinnCap underlined some of the challenges in the business, but pointed out that this was just a bump in the road, retaining a share price target of 250p.

Key stats
Market capitalisation£9m
No. of shares out188m
No. of shares floating158m
No. of common shareholdersnot stated
No. of employees54
Trading volume (10 day avg.)1m
Turnover£4m
Profit before tax£-2m
Earnings per share-2.17p
Cashflow per share-2.12p
Cash per share0.36p

Rosslyn Data (RDTR)

Who’s trading? Citywire AAA-rated Paul Jourdan, Douglas Lawson and David Stevenson

The trade: The Amati AIM VCT managers trimmed their stake in analytics business Rosslyn Data from 10.1% of the shares to just over 9% worth £824,000 at a share price of 4.8p.

How have the shares performed? The company has bounced from the record low of 4p struck in March but remain 84% lower than where they entered trading at 32p in May 2014.

What does the company say? Rosslyn has consistently promised jam tomorrow as it switched chief executive and strategy, and raised new equity in order to purchase rival Integritie last year. It warned in January that its increased size meant increasingly large and infrequent contract wins however, as it reported a pre-tax loss of £1.5 million.

What’s the outlook? House broker Cenkos is the only source of analyst coverage and predictably rates it a buy. While winning blue-chip clients to its cloud data services and rapidly adding revenue, actual profitability has proved elusive as it invested in research and systems. Management predicts the firm should break even this year.

Key stats
Market capitalisation£2,523m
No. of shares out373m
No. of shares floating262m
No. of common shareholdersnot stated
No. of employees10205
Trading volume (10 day avg.)1m
Turnover£1,753m
Profit before tax£361m
Earnings per share36.53p
Cashflow per share68.56p
Cash per share23.72p

Rockrose Energy (RRE)

Who’s trading? Citywire AA-rated Paul Mumford

The trade: The Cavendish AIM fund manager and microcap veteran upped his stake in offshore specialist Rockrose Energy from 7.9% of the shares to 10.1% worth £6.1 million at a price of 394p.

How have the shares performed? The business listed into the teeth of the oil price slump in early 2016 and has since dramatically revalued as the market recovered, climbing 620% on where it entered trading.

What does the company say? Rockrose suspended trading late last year as it completed a series of acquisitions and saw its valuation near-triple when it re-entered trading in February. The business said it remained acquisitive but was also confident of the organic growth potential of its existing portfolio of extraction rights.

What’s the outlook? Recent momentum has been powered by a spike in the oil price, as the US re-imposed sanctions on Iran. While Rockrose is largely ignored by sell-side analysts, it boasts well-respected energy economist Jon Fitzpatrick as its senior adviser

Key stats
Market capitalisation£1,151m
No. of shares out1,426m
No. of shares floating1,395m
No. of common shareholdersnot stated
No. of employees19270
Trading volume (10 day avg.)7m
Turnover1,132m USD
Profit before tax162m USD
Earnings per share0.04 USD
Cashflow per share0.07 USD
Cash per share0.06 USD

Coats (COA)

Who’s trading? Citywire A-rated Alex Wright

The trade: Star value manager Wright slashed his stake in thread manufacturer Coats, where he was formerly largest fund holder, from 9.9% of the shares to just over 6% worth £7 million at a price of 81p.

How have the shares performed? Coats rocketed 260% in the three years to January 2018 to reach a 20-year high of 90p. It has since traded sideways-to-down before recently breaking out higher.

What does the company say? Coats – the world’s largest supplier of sewing thread, formerly known as Guinness Peat – has thrived by shifting to the east in recent years and developing high tech products for the sports and industrial markets. Profits climbed 10% last year from $158 million (£117 million) to $174 million.

More about this:

Look up the shares

  • Coats Group PLC (COA.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Proactis Holdings PLC (PHD.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • RockRose Energy PLC (RRE.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Rosslyn Data Technologies PLC (RDTR.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • Alex Wright
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • David Stevenson
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Mark Niznik
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Paul Jourdan
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Paul Mumford
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

More galleries

 See all

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

Sorry, this link is not
quite ready yet