Taptica PLC is up 142% year-to-date. It has grown revenues at a compound annual growth rate of 44.5% over the past five years, and net income at 40% over the same period. Yet bizarrely it sits on a P/E ratio of only 13.7 times forward earnings. It’s time to take a look.
The following is an excerpt from ‘The Warren Buffett Way‘, by Robert Hagstrom.
“When Buffett first purchased Coca-Cola in 1988, people asked: “Where is the value of Coke?” The company’s stock price was 15 times earnings and 12 times cash flow – a 30 percent and 50 percent premium to the market average. Buffett paid five times book value for a company with 6.6 percent earnings yield at a time when long-term bonds were yielding 9 percent.
“Everyone has a plan, until they get punched in the mouth” – Mike Tyson
I’ve been investing seriously for nearly two years now. In that time the FTSE All-Share index has returned 16.9% (minus dividends), and I have been fortunate in that my portfolio currently stands up over 40%. But we are currently in year eight of a bull market and, like many, I am yet to experience a severe draw-down in portfolio value. I have yet to be punched in the mouth, so to speak.
In the Q2 2017 update, performance has again been more than satisfactory. The portfolio has returned 21.12% year-to-dateagainst 5.50% for my designated benchmark, the FTSE All-Share Total Return Index. Total return since inception in August 2015 therefore is now 39.96%. You can view the current portfolio here. For the (almost) two years this portfolio has been running there has been an annualised return of 20.52%.
It’s been a slower quarter compared to Q1, which returned just under 17.5% for the first three months of the year. Most of the performance change has been down to large movements in a few positions, namely Wizz Air and Creightons to the upside, and Dialog Semiconductor to the downside.