A listed corporate insolvency specialist, and therefore in the right area for the current downturn, but its relatively small size, weaker than forecast results and a stream of reasons why the company has not performed as well as trading statements would have implied, make it at risk; smaller caps with such opacity can often see their share prices squeezed in these conditions.
Begbies Traynor is the UK's only listed company specialising solely in corporate insolvencies. It has an attractive earnings-enhancing acquisition model which should allow it to double market share over 3 years from 5% to 10%, in what is still a very fragmented industry. Even assuming no increase in the overall market for corporate insolvencies then, should the company succeed in enticing sole practitioners to work with them in an autonomous environment (rather than being a small pawn in a large accountancy practice such as KPMG), the growth potential is dramatic. If, as we suspect, UK business conditions deteriorate over the coming years and business insolvencies rise, there is further upside.
| Sedol |
Type |
Price |
Date |
| B0305S9 |
Sell |
£ 1.016 |
09/01/2008 |
| B0305S9 |
Buy |
£ 1.60 |
17/11/2006 |
| B0305S9 |
Buy |
£ 1.68 |
05/07/2006 |
| B0305S9 |
Buy |
£ 1.42 |
29/03/2006 |
| B0305S9 |
Buy |
£ 1.00 |
19/07/2005 |
| B0305S9 |
Buy |
£ 0.935 |
09/06/2005 |
| B0305S9 |
Buy |
£ 0.94 |
09/06/2005 |
| B0305S9 |
Buy |
£ 0.89 |
08/06/2005 |
|
