Rail, bus and coach transport operators The first group (LSE: FGP) said a month ago that the number of passengers on the bus had reached 65% of the pre-epidemic level. And, at the time, managers expected more volume recovery as a school and university autumn condition “Start working perfectly.”
A strong earnings recovery is predicted
Meanwhile, urban analysts envisioned a strong recovery in earnings in March 2022 this year. If business hits those expectations, earnings will exceed 2019 levels.
With the share price hovering around 91p, earnings expected for March 23 next year are above 12. This is a reasonable assessment in my eyes. However, there is a fair amount of debt on the balance sheet, which can be problematic if we see another economic downturn.
But there are little signs of economic weakness affecting laser-guided concrete-leveling equipment manufacturers. Somero Enterprise (LSE: SOM). In September, the company reported an impressive half-year results report with much more shooting, including revenue, cash flow and profits.
Catch the covid
Managers feel that the progress was partly due to customers being involved in projects delayed by the epidemic. Looking ahead, Samero also expects a strong second half. Outside of that, CEO Jack Cooney says the company is building “Strategic investments to provide healthy profits and cash flow in the coming years.“
Meanwhile, 125% of the shareholders have been raised in the interim dividend. And the company is also engaged in a program to return some of its own shares. But despite the progress, the assessment looks decent to me. With the share price hovering around 500p, the forward earnings for 2022 are hovering around 12p. And the expected dividend yield is about 5.5%.
There are some risks that trading in the future may be easier once the workflow of customers is normal. But Somero has been expanding his business for several years and the trend is likely to continue.
Corporate debt investment
And good for strong trading for business Blackstone Anne Financing (LSE: BGLF). The company’s goal is to invest directly in floating rate senior secured loans and bonds, which usually represent debt incurred by the company and other institutions. And it indirectly invests in these types of securities by investing in collateral securities (CLO) securities and loan warehouses. – A CLO is a single security that is supported by a pool. And the process of depositing assets into marketable securities is called securitization.
In a half-yearly report in September, the directors said there had been a reduction “Actual and expected investment declines and default expectations. And it leads to a positive performance for the business. But looking ahead, the agency is wary of how the epidemic could unfold. However, the outlook for the rest of 2021 “Optimistic”.
There are obvious risks with this one. This is because the company has expressed the possibility of defaulting on another firm in their case. However, I think the assessment helps to compensate for such high risks. And, of course, the default is not guaranteed.
The share price is close to 81 euro cents, the value of the assets from the price is close to 0.9 and the yield on the shareholder dividend is close to 9%.
Kevin Godbold has no position in any of the shares mentioned. Motley Full UK is recommended by Somero Enterprise, Inc. Here at The Motley Flower we believe that considering a variety of insights makes us a better investor.