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One of My Most Tipped Shares, Creightons is now a more than 30-bagger. And that's Not a Typo.

By Malcolm Stacey | Thursday 29 June 2017

Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Hello Share Smatterers. If anyone ever berates you for risking your money on penny shares, you might want to tell them the following tale.

I last commended Creightons (CRL) at the start of this month. It’s nice to end it with a success story. As I write, the share is up by nearly 30% on the day. Compared with Creightons' share nadir, admittedly a few years ago now, we are looking at a more than 30-bagger. And that’s not a typo, either.

Creightons makes consumer goods, some of which I regard as pointless. But of course the great British public love to buy unnecessary stuff. And the full year preliminary trading results for Creighton reflect this happy trend. Here are the highlights.

  •       Revenue increased by 45.7% to £30.6m (2016: £21.0m).
  •       Operating profit increased by 171% to £1,513,000 (2016: £558,000).
  •       Operating profit margin of 4.9% (2016 2.7%).
  •       Cash generated £1.2m (2016: £0.9m).
  •       Diluted EPS 1.88p (2016: 0.84p).

Pretty good, don’t you think? And some extra good news is that - at last - the company has decided to pay a dividend. This is 0.23p per share. Ok, we’ve looked at the financials, now let’s consider a few of the operational highlights.

  •        Sales from contract business increased by 210%.
  •        Export sales growth of 62%.
  •        Sales of Branded products increased by 16%.
  •        New multiple and internet retailers.

This pocket-sized company is also collecting prestigious awards from the ‘Beauty Press’. I first bought 17 years ago at about 10p a share following advice from my City friend Alan Green. Over many years rot set in and at one unhappy stage, I seem to recall the shares were around 1p. But then came slow revival. The share, as I write, is over 31p. So some lucky punters could be sitting on a more than 30-bagger.

That means they could have bought shares in 29 companies at the same time and, even if they all failed 100%, they would still be up on the exercise. Therefore, the Creightons story, which is far from complete, is a fine example of the wisdom of putting penny dreadfuls in your portfolio.

There’s free champers tonight in the Punter’s Return.

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