Quindell
It feels as though Quindell (LSE: QPP) is rarely out of the news. This time around the company is filling column inches as a result of its rumoured approach to former Conservative party leader Michael Howard, whom Quindell is apparently keen to have sitting on its board.
Clearly, discussions are at an early stage… but this could be a good move for Quindell, since Lord Howard has an excellent reputation and could bring considerable decision-making experience to the company’s board.
One problem with Quindell, though, is that it is at the start of a major transition that leaves investors in the company in the dark as to what it will eventually become. Of course, it has the potential to become a highly successful telematics business, with the rumoured offer for this division highlighting its future potential. However, as to whether now is the right time to buy Quindell, there are simply too many known unknowns at the present time regarding its future performance, which makes it a relatively risky proposition in the short term at least.
Kingfisher
Shares in owner of B&Q, Kingfisher (LSE: KGF), have been given a boost by an improved outlook for the Eurozone. Certainly, the region has a long way to go in terms of returning to growth and the impact of QE has not yet been fully felt. But, with Kingfisher relying on France for 38% of its sales, improved confidence in the Eurozone has helped to push the company’s share price up by 23% in the last six months.
Looking ahead, Kingfisher is forecast to increase its bottom line by 9% next year, which is higher than the FTSE 100’s growth rate. And, with the company trading on a price to earnings (P/E) ratio of 16.5, it seems to offer better value for money than the FTSE 100, which has a P/E ratio of 16. As such, and while its future is highly dependent upon the performance of the French economy, now could be a good time to buy a slice of Kingfisher.
CRH
Low interest rates are great news for materials supplier to the construction industry, CRH (LSE: CRH). That’s because they mean increased availability of mortgages and buoyant house prices which, in turn, leads house builders to become more ambitious with their building programmes and demand more materials from the likes of CRH.
Looking ahead, low interest rates seem set to stay for a number of years. As such, CRH is likely to deliver growing profitability, with its bottom line expected to rise by 48% this year and by a further 31% next year. And, with CRH trading on a P/E ratio of just 21.2, it equates to a price to earnings growth (PEG) ratio of just 0.5. This indicates that a wide margin of safety is on offer and that CRH could be a great buy at the present time.
