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By Malcolm Stacey | Wednesday 6 December 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 Crumblers. When Ashtead (AHT) rose to 1700p, I thought enough was enough. I sold because I could not see Big Donald’s infrastructure plans coming to much. Ashtead, you’ll recall, is big in the construction industry in the USA. But the share is now tickling the 2000p mark. So a mistake there. Except that it’s never wrong to take a profit. And in this case it was, for me, at least a 10 bagger. But Ashtead is not the only company which hires out tools and plant to builders. Which brings me to today’s commendation.
This is Speedy Hire (SDY), a firm which has two hundred places to hire tools in Britain and Ireland. So, though you may not have heard of it, Speedy Hire is still quite big.
Its last set of numbers are from the middle of last month. Half-year results gave us an increase in pre-tax profit. This was up by more than a tenth on last time to £6 million. The dividend was improved by a half to 0.5p a share. During the six month period, some restructuring and efficiencies have been going on. The big cheese opined that the full year would be better than expectations and that the future looked bright.
He might well say that, of course, but the half-year figures back him up. While you only have to look at the soaraway success of Ashtead to see that hiring tools is a bouncy market which encourages rapid growth.
When the interims came out the share was about 55p. It’s still only 56p. So the perky results don’t look to have yet been reflected fairly. It might therefore make a reasonable investment for those who missed out on Ashtead and are looking for a way of making up for it.
See you in the Punter’s Return.
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