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By Malcolm Stacey | Thursday 14 September 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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 Subscribers. If your company is underway in 1895, you are entitled to call it Victoria (VCP). Though perhaps the stern queen would not have approved of the firms supply of carpets to casinos.
Victoria makes posh carpeting, including Wiltons, and exports it. Its customers, both private and commercial, include cruise ships and hotels. Its biggest markets are in Blighty, Australia and Europe.
At the end of last month, it made a trading statement, boasting of rosy progress so far this year. And it was expecting to bob along nicely for the rest of 2017.
VectorVest, a vigorous company which looks at the charts, reckons that there are very bullish signs, which I don’t understand, being one of the world’s great unbelievers in technical analysis. It notes ‘a strong bull trend of rising price bottoms over the past year’.
VV agrees with me that the share price is currently undervalued. It may be that investors are worried about the effect of Brexit on Victoria’s trade with Europe. But surely profitable new agreements will eventually be drawn up to help both Britons and those wily foreigners who already export to us much more than we do to them.
At any rate, Victoria’s share price has almost exactly doubled in the last 12 months. Remembering that the trend is your friend, I foresee even better over the next few months. Also, the run-up to Christmas usually sees the carpet market pick up as people smarten up their homes for visitors.
Now the PE ratio I have is 45, which is a bit scary. Until you factor in that this is an ambitious company which is growing fast with an eye to beneficial acquisitions. And at least an investment here releases us from the fashionable worry about oil, retail and mining shares. I prefer bare boards to carpets in my home, but I’m an eccentric and most people seek the cosiness of carpets.
Though there’s only sawdust on the floors of the Punter’s Return.
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