This company provides a range of logistics services to different businesses. It focuses on the fashion, retail and electronics industries.
Complete Newbie here…this caught my eye and I think it might be worth picking up as I think it has potential. Can I get another opinion please? I know I have a lot to learn and am grateful for all tips and advice.
https://www.proactiveinvestors.co.uk/companies/news/945145/clipper-logistics-growing-at-a-fair-clip-945145.html
*Not an investment advice and I don’t hold these stocks
In my view, Clipper Logistics and Wincanton are arguably the best 2 logistics companies when it comes to small caps.
I’ll supplement with the pros and cons over the weekend.
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I don’t hold these so I haven’t exerted all my brain power in the analysis so someone here may supplement / rectify
Wincanton (LON:WIN)
| Checklist | Good or Bad |
|---|---|
| Profitable |  |
| Growth YOY |
Digital and eFulfilment up by 40% |
| Analyst Consensus |
Strong Buy (5) |
| Last earnings report |
Above market expectations |
| New business opportunities |
Heineken, B&Q, Snug signed up |
| Net Debt |
 Fairly high mainly due to pension deficit |
Clipper Logistics (LON:CLG)
| Checklist | Good or Bad |
|---|---|
| Profitable | |
| Growth YOY |
structural shift to e-commerce which led to unprecedented levels of activity in H2 2020 according to the latest RNS which is probably expected due to PPE contracts + Black Friday and Christmas |
| Analyst Consensus |
Buy (2) |
| Last earnings report |
Above market expectations |
| New business opportunities |
Strong pipeline as indicated in the latest RNS - no further details on this |
| Net Debt |
Fairly high mainly due to lease liabilities |
| Insider Selling |
one director sold 11m shares for £62m recently which could be since the SP has doubled but makes me uncomfortable buying when there is insider selling on a large scale |
CLG looks a bit too expensive now which is over 30 times the current year earnings.
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Interesting, I agree with many of the positives for CLG , though I had no idea about the director selling shares. The Pension situation with WIN is a great point, thanks for the tips,