Based on analysts’ forecasts Speedy Hire is on a prospective PE ratio of less than five and a yield of 4.9 per cent.
This seems hard to believe. There is a good rule in the stock market that when a share seems improbably good value it is improbable.
Forget the analysts’ projections and just think about what is happening in the world. Residential and commercial property prices are plummeting, projects are being cancelled all over the place and the public sector deficit is heading into orbit meaning there is also going to be a massive squeeze on public spending.
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Rapid growth through acquisition
In June 2007, at the top of the market, Speedy practically doubled in size when it bought Hewden Tools for £115m.
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