Are shares in these companies worth buying after news today?

There was some impressive news out today but does it mean you should buy?

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

These three companies all released updates today so the question is: should we be buying their shares on the back of this news? 

First update

Time Out  (LSE: TMO) released its first trading update today after its initial public offering in June. The company raised £90m to pay down debt and invest in growing its e-commerce and digital advertising operations. Today’s update was encouraging: year-on-year group revenue was up 16% and digital revenue grew by 33%. The company has started life well on the London market and the share price is flat since admission to it. An encouraging element has been the relentless buying of shares by institutions. Invesco added to its initial stake and now holds over 11.5% of the shares in issue. Britain’s most loved fund manager has also been buying and Neil Woodford owns over 15% of the company through his Woodford Investment fund. This to me is a seal of approval for the stock and should give investors confidence. 

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

Growing production

Cameroon-focused Victoria Oil & Gas  (LSE: VOG) updated the market today on its operations in the second quarter of this year. The numbers look quite encouraging, production is up to 13.04 mmscf/d which led to revenue for the quarter of $12.5m. Importantly the next two phases of pipeline should be commissioned by the end of 2016 and it will be able to feed an additional 12 customers who have already signed gas sales agreements. 

CEO Ahmet Dik said: “We now look forward to expanding our supply capability to the next level to meet the on-going strong demand for gas we are experiencing in Douala.” Things are beginning to look better for the company after many years of slow movement. I look forward to the next set of results but I’ll be sitting on the sidelines until then. 

Currency boost

Croda International  (LSE: CRDA) also released interim results today. At constant currencies, sales were up 2.1% and adjusted profit before tax up 6.3% to £144.6m. These numbers are impressive and to add to this, currency movements have boosted profits significantly. In fact, the pre-tax figure was boosted by £4m, which is a nice surprise for shareholders. Croda’s management has reacted to this by increasing the dividend by 5.6% even after investing over £50m into capital investments in the last six months.

But while these results are good, there were references to “subdued demand in the first half of 2016,” which is slightly worrying. It places much more emphasis on cutting costs and if demand for Croda’s products is subdued for a year or two, then the share price may fall.  

Steve Foots, Croda’s CEO, said: “The group is on track to deliver our expectations for the full year, in constant currency terms, while Sterling weakness will benefit our reported results.” And that should be encouraging for shareholders because further Sterling weakness will boost revenue and profits beyond expectations.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Jack Dingwall has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

A beach at sunset where there is an inscription on the sand "Breathe Deeeply".
Investing Articles

Stock market crash: here’s why falling prices is good news

Over in the US, a stock market crash is battering high-priced stocks. But I see falling shares as an opportunity…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Investing Articles

These 5 FTSE 100 shares crashed in 2022. I’d buy 1 today

Although the FTSE 100 index is flat in 2022, some Footsie shares have crashed hard this year. But I see…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

How investors can boost their passive income when the FTSE is falling

Stock markets are plagued with fears right now. Here's why I firmly believe those fears improve our passive income prospects.

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Investing Articles

2 cheap UK shares to buy right now!

Recent market volatility means many top stocks now trade at rock-bottom prices. Here are two cheap UK shares I'm thinking…

Read more »

Rolls-Royce's business aviation engine, the Pearl 700
Investing Articles

The Rolls-Royce share price is just pennies. Am I missing something?

As the Rolls-Royce share price lingers in penny stock territory, our writer revisits the investment case that has attracted him…

Read more »

Compass pointing towards 'best price'
Investing Articles

How to put a valuation on the Woodbois share price

The Woodbois share price has fallen from its recent spike, so should I buy now? And how can I work…

Read more »

Inflation in newspapers
Investing Articles

I’d fight inflation with these 2 FTSE 100 dividend shares

With inflation hitting a 9%, I'm boosting my passive income and turning to these two FTSE 100 dividend stocks.

Read more »

New Ways of Investing - Hands Only Using Smart Phone
Investing Articles

2 cheap Footsie stocks to buy for BIG dividends!

The recent stock market sell-off leaves plenty of top stocks looking too cheap to miss. Here are two great Footsie…

Read more »