Two shares that gets the thumbs up – Private Businesses

The pharmaceutical company Meda has historically grown through acquisitions of other companies and sales rights around the world. This is to avoid costly and risky research that characterizes the pharmaceutical industry. The focus has instead been on economies of scale in distribution, sales and manufacturing.

The business world agrees that the valuation of the Meda share is high, but still sees a profit developments and trace a P / E ratio of 23, this year and 22 next year. The recommendation is to buy the target price 168 dollars on a one-year term.

The network DCG singled out by the magazine as an unknown on the stock market, but with digits that convinces. Since the IPO in 2008, DCG has maintained an annual growth rate of 15 percent, while operating profit increased by around 18 percent per year. With stable revenue and contract periods that often runs between three and five years is deemed IT company’s profitability to remain stable and operational risk low.

Furthermore, termed growth potential as high, both within the existing business and through new customers in the public sector. The low share liquidity may become a problem, but to the long portfolio DCG an attractive candidate. Target price is set to SEK 145.

The retail chain Clas Ohlson has according to Business World several of the company’s quality characteristics. Among other things, the return on capital employed of 30 percent, the cash flows are good and the company continues to grow, albeit at a much slower pace than before.

Meanwhile, the trend of profitability has been falling since 2002/2003 because of increased competition from other chains and costly expansion into new markets. Furthermore meets Clas Ohlson by a strong dollar, which is the company’s most important purchasing currency. This risk affecting the gross margin in the coming quarters.

Affärsvärldens recommendation is to wait.

Industrial retailer B & amp; B Tools has both managed to strengthen its balance sheet and increase profitability, improvements unfortunately not reflected in sales.

The outlook for increased sales is mixed, with moderate growth in certain business areas, but with unchanged numbers in the core business. With the already tight margins can be as big profit as in recent years, become difficult to achieve.

The paper assesses the growth potential as moderate and trace a profit increase of around 10 percent. The recommendation will also have to wait.