The city view - Stanley Gibbons

Following a meeting with the management of Stanley Gibbons, Seymour Pierce re-iterates its 'Buy' recommendation on the company.

The broker is confident that stamps will continue to outstrip other forms of investment and that the company is too lowly rated at less than 8x this year's earnings following the decline of 30% in the shares over the past six months. Seymour Pierce has slightly notched up its 2008 pre-tax profits forecast from £5 million to £5.5 million.

The broker also suggests Stanley Gibbons benefits from a strong balance sheet. Its cash balance is predicted to rise to over £7 million this year and management have stated that they do not intend for stock levels to go above the current level of £10 million. The shares remain unchanged today (November 18) at 134.5p.

Tagged as: stanley gibbons

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