Shooting the lights out
Twitter is an incredibly useful service, albeit it definitely makes it much harder to invest, when whole industries can be rocked overnight by a simple tweet from the White House. However what President Trump has been 100% consistent on, is his ‘America First’ policy.Indeed we believe this 'over-riding #1 priority’ should continue to support the US as the best performing G7 economy heading into the Nov’20 Presidential Elections, and remain the ‘destination of choice’ for many fund managers. Fortunately too for UK investors, there are US domestically-focused companies listed right here in London.
Take ClearStar, a tech-enabled background & medical screening (MIS) specialist, based in Atlanta (Georgia) that is both expanding rapidly & materially undervalued. Today the firm said that it had backed up June’s “highest ever monthly revenue [Est +29% organically]†with another blistering performance in July. Not only breaking the $1m/month barrier at its leading MIS division, but also delivering total revenues of $2.25m, up approx. 26%-30% LFL.
Growth is being driven by the group’s best-in-class mobile software, on-boarding of clients, contract wins and up/X-selling. Augmented by favourable macro tailwinds, such as the ongoing popularity of the gig economy, crackdowns on illegal workers & legalisation of cannabis for recreational use.
Consequently we are becoming increasingly confident that CLSU will hit (& perhaps even exceed) our conservative FY19 revenue forecast of $23.0m (14.4% LFL), and reiterate the 135p/share valuation. In fact if this momentum is maintained, then there should be scope for future upgrades in due course.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
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