Sunday share tips: Purplebricks, Bluejay Mining, Playtech
Sell Purplebricks shares, advised the Inside the City column in the Sunday Times, noting recent stock disposals by some founders after the online estate agent has seen its share price rise from 100p at its IPO two years ago to above 500p earlier this summer. "Add a slowing housing market to the equation and maybe they’ve got the right idea." The company, which is still lossmaking, offers people selling their houses the chance to save money by not taking commission on the sale but instead a fixed fee of £849 - or £1,199 in London but are charged extra for viewings.
Final results in June revealed it generated UK turnover of up 132% to £43.2m and £3.5m in Australia after a launch during the year. The AIM-listed company Sold and completed on over £5.8bn of UK property (with a further £3.69bn in the pipeline subject to contract). The company said its conversion from instruction to sale is currently 83%, with a sale agreed every nine minutes 24/7, and that it increased the average revenue per instruction to £1,035.
Buy Bluejay Mining, said Midas in the Mail on Sunday, as it took a look at the Greenland-focused ilmenite miner. Ilmenite is used to make titanium. The 60 square mile Pituffik project is poised to move into commercial production. Aided by solid local infrastructure the ilmenite sands will be moved to ports and shipped overseas at a cost-sustainable rate.
Chief executive Roderick McIllree aims to fly some samples to potential customers before the end of the year and said the project was on track to begin production later next year. Production is forecast to hit close to 100,000 tons in 2018, climbing to above 300,000 two years after that. Other assets in Bluejay's portfolio include Disko copper and nickel project also in Greenland and a sizeable copper site in Finland too.
Playtech was a buy for Questor in the Sunday Telegraph as the online gaming software group's momentum sees its shares nearing highs and still trading on a forward p/e ratio of roughly 12. A provider of technology and services to numerous online poker, bingo and other gaming sites, with its big money spinner being online casinos.
A trading update in May said growth in daily average gaming revenues remained strong, helped by acquisitions made in prior years, but that early stages of a contract with Sun Bingo was challenging but that performance was improving. For the full year Playtech is forecast to have amassed close to €470m cash and swell this by around 50% over the next two years. This provides ample funds for more purchases.