Coronavirus Share Tips [Monday, 25th May, 2020]

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Coronavirus Share Tips [Monday, 25th May, 2020]

Post by BeautifulSunshine » Mon May 25 2020 5:48pm

Stock market crash: I’d invest £5k in these dirt-cheap small-caps in an ISA

Royston Wild | Monday, 25th May, 2020
The recent stock market crash has been unkind to scores and scores of UK-listed shares. The threat of a deep and extended global recession should be taken seriously, naturally. But the extent of some share selling has been quite OTT, in my opinion.

CareTech Holding (LSE: CTH) is a small-cap I think has been way, way oversold. At current prices of 385p per share, the care and education specialist deals on a forward price-to-earnings (P/E) ratio of just 9.5 times. It’s a rating that both undermines its exceptional defensive qualities and its rising revenues opportunities, in my opinion.

The company provides a wide range of essential social care services for children and adults. It thus provides an indispensable service that does not bend to changes in the broader economic landscape. Indeed, recent CareTech comments disclosing that business has remained “resilient” since the end of March underline just what a brilliant investing lifeboat it is during tough times like these.

Don’t think of CareTech as just a wise buy as the global economy shakes, though. The firm remains committed to acquisitions to bolster its longer-term profits outlook. Earlier this year entered it secured a 51% stake in AS Group, a business it describes as “the largest provider of private outpatient mental health services in the United Arab Emirates.” It has plenty of financial firepower to follow through on its packed pipeline of investment opportunities too.

Arrow descending on a graph portraying stock market crash

Another crash casualty
Tyman is another small-cap I’d happily stash into my own stocks portfolio following the recent crash. At current prices around 165p per share, it trades on a rock-bottom forward P/E ratio of around 7.5 times. It’s a reading that I don’t think reflects its rock-solid balance sheet or its brilliant long-term profits picture.

The business makes the components for doors and windows that are essential for homebuilding. It stands to struggle in the near term due to the cyclical nature of its operations. But the strength of its market-leading brands all over the globe — it has operations across Europe, The Americas and Asia — should put it in the box seat for a strong recovery when the global economic downturn eases.

A glorious foodie
I’d also be happy to buy sausage skin maker Devro today. This small-cap’s price of 160p per share means that it trades on an earnings multiple of approximately 10 times, based on current forecasts. And it’s a company that’s expected to keep growing earnings over the next couple of years, irrespective of the upcoming macroeconomic slump.

We can’t do without food, obviously. And so those involved in the production of edible goods tend to be more resilient in times like these. But don’t just think that Devro as a top buy for the next few years. The recent investments it has made to boost its product ranges and its global manufacturing base should bolster its profit-making abilities over the longer term too.

The high-calibre small-cap stock flying under the City’s radar

Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity…

You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy.

And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline.
Source:
https://www.fool.co.uk/investing/2020/0 ... in-an-isa/

£1k to invest? I would consider buying this FTSE 250 tech stock now

Jabran Khan | Monday, 25th May, 2020
I believe a tech stock’s performance depends on its purpose. For example, a tech stock that has ride hailing applications may not be performing too well in the lockdown. On the other hand, a food delivery app is probably doing much better.

Software development companies specialising in online gaming platforms are a double-edged swords, in my opinion. Although sporting events may have been cancelled, casino games have seen a rise in popularity during the lockdown.

Tech stock extraordinaire
Gaming is big business. But Playtech (LSE:PTEC) isn’t your typical online gaming company. Since 1999, Playtech has grown to become the world’s largest online gaming software supplier. It employs nearly 6,000 people across 19 countries and possesses 140 global licenses. It has licence agreements with well-known names, including William Hill, Ladbrokes, and Warner Bros.

Playtech has operated very much in the background of the gaming industry, creating and delivering platforms for gaming companies. Throughout its 20 years of existence, it has made shrew acquisitions to further its product range and diversify its offerings.

Trading update and performance
Since the turn of the year, PTEC has lost over 40% of its share price value. I feel this presents a unique opportunity to grab bargain price shares in a great tech stock.

Playtech took early steps in response to Covid-19. And it has kept investors abreast of all its developments with updates in March, April, and May. Its main actions were to prioritise the health and wellbeing of its employees, and to preserve cash flow.

This meant Playtech’s employees began working from home in February, almost one month before the UK lockdown was imposed. Its board and executive management team took a 20% pay cut. Furthermore it decided to defer its current dividend.

Results for 1 January to 30 April fell in line with expectations. Playtech pointed towards the exceptional performance of its trading platform TradeTech, which benefitted significantly from the increased market volatility and trading volumes. Playtech also has over €600m in liquidity which should see it through a turbulent time. It estimated that €65m was saved by suspending its dividend payments. This a shrewd move that many companies have been forced to take.

Verdict
Overall, I think Playtech could be a bargain tech stock to snap up at its current price. I believe that Playtech’s diversified portfolio of products and services set it apart from other run of the mill tech stocks.

Playtech has a truly global reach, which will benefit it, especially during this turbulent time. Although the lockdown is still in effect here in the UK, many European and Asian countries are emerging from lockdowns. Playtech has significant interests in Asia and Europe.

To say the pandemic will not affect Playtech would be untrue. PTEC has been transparent in its performance over the past three months and about how the virus is affecting it. That said, analysts predict that there will be growth for this technology giant, which I feel will thrive as time goes on.
Source:
https://www.fool.co.uk/investing/2020/0 ... stock-now/
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