Account gamble
Following Fogarty
John Bull
After a bad start to the current year, picking Lesney Products as a " sell," my selection of Revertex has been well justified with the shares up 6p in the results to 77p last week, And I feel this would be a situation worth staying with a little longer. Any investment deci sion, however, should be fully reappraised after the full year's report has been seen.
Now in about two weeks we shall see the full report of E. Fo garty. And I expect it will have a favourable impact on the market after the poor reaction to the preliminary figures earlier this month. Then Fogarty stated that pre-tax profits had fallen from £524,000 to E480,000 though with earnings down from I3.5p to 12p the dividend was effectively raised from 164 to 17i per cent. The point is that Fogarty's second half showed a marked im provement as indicated by the re duction in the profit fall from a third to 8 per cent over the two naives of 1972. Increased profits are expected for the first half. Fogarty, which trades as processor of man-made fibres, down and feather fillings, and manufactures house textiles, has so far been trading at a satisfactory, level compared with the same period in 1972. Then the group had been adversely affected by industrial disputes and delayed buying by people expecting cuts in purchase tax in the Budget.
As I have indicated, however, things are going much better and I expect to see _growth from two particular areas. Firstly, a new rug-making plant is coming on stream and orders are in a satisfactory state; and secondly, there is the growing popularity of continental quilts or duvets in this country and Fogarty supplies the stuffing for these.
So, with the hope that Fogarty's chairman, Mr Charles Bert Fleet, will say some encouraging things about prospects I am recommending the shares currently standing at 102p.
First Last Account
dealing dealing Day 9 April 27 April 8 May 30 April 11 May 22 May 14 May 1 June 12June
Previous page
