|
|
|
|
|
Buy All Leisure at 190.5p Having listed in October last year the cruise operator All Leisure is yet to make waves in the market. While the shares have remained relatively flat at 190.5p I think that the company is well worth putting in your portfolio for the long term. All Leisure has three brands which are mainly aimed at the older generation, or "grey pound" as its known. Voyages of Discovery offers round the world cruises on its ship "Discovery", Discover Egypt provides package tours to Egypt and finally Swan Hellenic, which the company bought last year, offers cruises on its ship "Minerva". Although the company saw its revenues fall by 5% over the year to 31st October 2007 pre-tax profits rose by 12.5% to £7 million with earnings coming into dock at 12.3p. After raising £10 million along with the IPO the company had £28 million of cash in the bank at the end of the year which I'll talk about in more detail later. The outlook for the current year is really encouraging. At the end of January All Leisure reported that sales for its summer programmes are progressing well with 91% of budgeted revenues already achieved for Swan Hellenic's maiden programme in summer this year. Around 65% of Voyages of Discovery's budget has been met too providing great earnings visibility. You may be concerned about All Leisure's exposure to falling discretionary spending but with the average customer tending to be in their early 60s and generally more affluent than most the company is not greatly exposed to that risk. Overall I am a big fan of this stock and think that it could make a splash in the coming years. Earnings are forecast to rise to 17.4p this year on the back of the first contribution from Swan Hellenic and on a PE of 11 times the shares look cheap considering the strong growth that is forecast. What is really exiting is that the cash in the bank will be enable the company to splash out on a new ship which I can sea (sick)(sic) adding significantly to earnings. Take the plunge and BUY. Key Data EPIC: ALLG Scarlett Moore pens a weekly share tip for users of Sharecrazy Supermarket. It costs just 3.99 pounds a month to access Scarlett's tips. The supermarket also offers an in depth sector report each quarter worth £15 (this quarter's report is 6 Oil stocks you must buy NOW!), the rumour mill (read the latest rumours and stories on stocks and shares every day), a 20% discount on top investment books and websites and discounts on top English wine plus much more. To access this premium product for the equivalent of less than a quid a week click HERE.
*The value of your investment and the income from it can go down as well as up and you may not get back a significant proportion of your investment. Past performance is not a guarantee of future performance. If you are in any doubt as to the suitability of an investment, you should seek independent financial advice. |
|
