Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CLEARSTAR INC. We currently have 4 research reports from 2 professional analysts.
|26Jan17 07:00||RNS||Trading Update|
|01Nov16 07:00||RNS||Director/PDMR Shareholding|
|27Sep16 07:01||RNS||Interim Results|
|27Sep16 07:00||RNS||Change of Adviser|
|24May16 18:16||RNS||Result of AGM|
|24May16 07:00||RNS||AGM Statement|
|29Apr16 17:21||RNS||Notice of AGM and Posting of Annual Report|
Frequency of research reports
Research reports on
27 Sep 16
Victoria* (VCP): May the floors be with you (CORP) | ClearStar* (CLSU): Screening Buy (CORP) | Avingtrans^ (AVG): FY results – at the fulcrum of change (BUY) | Netcall* (NET): Prelims show strategic progress (CORP) | Alternative Networks* (AN.): Year-end trading update (CORP) | Universe* (UNG): Project delays break up party (CORP)
27 Sep 16
We initiate coverage on a long-established, well-managed and well-funded US company in the steadily growing global background-screening market. ClearStar is taking advantage of a highly competitive technology platform, an impressive existing customer base and excellent long-term prospects. It has traditionally supplied its solutions and services through channel partnerships, which see large volumes and high levels of recurring revenues. However, it has been investing in developing a direct business which offers higher growth and improved gross margin, through an opportune direct service acquisition in late 2014, augmented with additional sales and support investment. The interims show the original (pre-acquisition) direct business has doubled YoY as a result, improving margins and pushing the company towards profitability. Furthermore, since 2014 it has been developing a global platform which will allow it to reach beyond its current US market. Post the 2014 IPO, results were impaired by the unexpected acquisition and investment in new products so the shares have drifted to a point where there is significant value for new investors. Comparable market peers currently trade on an average EV/Sales multiple of 2.2x; even discounting this by 25% derives a 60p target price, more than 40% uplift on the current valuation.
The Cybersecurity Rebellion: “No, I’m Spartacus!”
07 Jun 16
Steve “Woz” Wozniak, infamous co-founder of Apple, was the latest culprit to send shivers across the tech world by claiming Cybersecurity is the greatest threat the world has faced since the atom bomb. Mr Wozniak was alluding to the heightened sense of fear that recent high profile breaches have caused Cybersecurity to be put at the forefront of political, corporate and now it would appear, investor agendas. As the topic gains increasing awareness, it gives rise to a number of companies claiming to be a “thought leader” in the Cybersecurity space, holding the best IP and the best routes to market. With many companies singing from the same loss making hymn sheet it is making it ever difficult to spot the true “Spartacus” from the crowd.
Check this out
05 Nov 15
ClearStar is a well established tech platform and service provider to the background check industry with circa 2,300 generally very sticky customers. In fact ClearStar now serves over 27,000 employees annually and has over a 90% retention rate. The company is vying for profitability through both the execution of a targetted growth strategy and the search for further internal efficiencies. During 2016 the company expects to recognise circa $1.2m of annualised cost savings.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
N+1 Singer - NCC Group - Further issues in Assurance
22 Feb 17
NCC released a trading update yesterday afternoon highlighting further issues in its Assurance division. Sales growth has been lower than expected in all regions, resulting in a significant reduction in full year expectations. We have reduced our EPS forecasts by 25% in FY’17 and 22%/25% in FY’18/’19 respectively. Escrow continues to perform in line with expectations. In response to these issues the Board has announced a strategic review into all of the Assurance businesses. The results of the strategic review are expected to be announced at the FY results in July. With an extended period of uncertainty on the horizon we believe it will be hard for investors to gain confidence in NCC in the short term. That said we see fundamental value in the stock. Escrow is unaffected by this warning and remains an extremely high quality business, which we value at £353m in our SOTP. At the current share price this leaves Assurance valued at c.5x cal’17 EBITDA. While this appears to be an attractive multiple for a rare cybersecurity asset, we would like further clarity on the underlying nature of the current issues, hence our Hold recommendation. Our 138p target price assumes a 12x EBITDA multiple for Assurance but we apply a 20% discount to the group to account for the current uncertainty.