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Buy Empresaria at 88p Investors love the recruitment sector about as much as they love Alistair Darling at the moment. Worries over a downturn in the economy, which many recruitment stocks would be exposed to, have led to a raft of stocks in the sector trading on single digit multiples despite very few signs of a significant fall in trading. One such stock that has caught my eye is Empresaria, the international specialist staffing group. One of the main attractions about the company is the fact that it has operations in 17 countries around the world. Due to a ramp up in the number of overseas acquisitions and start-ups the majority of the company’s revenues and 60% of its net fee income now comes from outside the UK, so if a much feared downturn does come about the company can offset this somewhat. Empresaria recently revealed an upbeat trading statement saying that in the year ended 31st December 2007 it recorded revenues of £146 million, almost double 2006 revenues, and net fee income of £40 million. The company reported growth in all of its operating regions around the world. Although its focus is shifting abroad the UK business experienced strong organic growth, especially in the construction and services sector. The shares were trading at an all time high of 187p in June last year just before the market troubles began. Although they have made up some ground recently, after falling below 80p, I think that at 88p Empresaria a definitely worth a punt. The company is expected to post earnings in the region of 9p for calendar 2007. Boosted by increasing contributions from the Asian businesses earnings should rise to 12p in the current year. That means the shares are currently being valued by the market at just 7 times earnings, which would seem to already factor in a downturn of nightmarish proportions. Sentiment may not improve for a while yet but if you have a long term investment philosophy then shares in Empresaria could prove to be lucrative. BUY Key Data EPIC: EMR 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. |
