Quindell
Investors in Quindell (LSE: QPP) have received some positive news flow of late regarding the proposed sale of its professional services division to law firm, Slater & Gordon. Firstly, Slater & Gordon has had no issues in raising the funds required from its investors and, secondly, the deal has been approved by the Solicitors Regulation Authority. All that is now required for the sale to complete is the approval of the Financial Conduct Authority.
Clearly, this is good news for Quindell, but there remain question marks over exactly what it will be focused upon in future. Certainly, we already know that a big payday is just around the corner for the company’s shareholders, but as to how Quindell plans to generate future returns for its investors, it is very much a case of wait and see.
Certainly, with a new management team and a multitude of businesses, Quindell has the resources to become a successful business. However, potential investors may wish to wait for more clarity on how this will happen before buying a slice of Quindell.
International Personal Finance
Shares in IPF (LSE: IPF) are up by 1% today despite the lender reporting a fall in profit for the first quarter of the year. In fact, IPF’s pretax profit was down to £10.7m from £12.4m in the first quarter of the prior year, with £2m in restructuring costs and £2.6m in a weaker currency environment being the key reasons behind the fall. As such, IPF expects to post full year earnings that are only 2% higher than they were last year.
However, next year is set to be much better for the business, with IPF’s bottom line expected to rise by 14%. And, with it trading on a price to earnings (P/E) ratio of just 12.7, it appears to offer good value for money given its upbeat growth prospects. Furthermore, with interest rates set to stay low over the medium term, demand for new loans could remain relatively high moving forward, thereby providing a boost to IPF’s bottom line.
Howden Joinery
Over the last year, shares in Howden Joinery (LSE: HWDN) have soared by 45% and, as today’s update shows, it is currently trading very much in line with expectations. Furthermore, Howden is on-track to open 30 new depots this year, with the company saying that trading conditions are unchanged from those experienced last year.
However, Howden may find it difficult to replicate its superb performance over the last year. That’s because it currently trades on a P/E ratio of 18.7 and, with its bottom line due to rise by 9% this year, it equates to a rather rich price to earnings growth (PEG) ratio of 2, which indicates that its shares may be fully valued.