Tuesday tips round-up: Quindell, SkyePharma

1st Apr 2014 07:03

Track records are important; hence, investors may want to carefully consider the investment thesis behind Quindell. The firm specialises in handling motor and household claims for insurers and now works in some way, shape or form, with the majority of the top ten insurers. Judged solely on its numbers, the company is certainly impressive. On Monday it reported pre-tax profits for the year ended on December 31st of 107m pounds, for an increase of 202 per cent on the back of a 133 per cent surge in sales. The AIM-listed company now has a market capitalisation of over 2.25bn pounds after also acquiring more than 20 companies in the two and a half years since its debut on the market. However, chief Rob Terry has done this before. He transformed The Innovation Group into a business with revenues of £1bn a year. That venture ended in tears towards the end of the dot-com bubble despite its much vaunted revolutionary technology. Quindell has raised its guidance on new business to £2bn a year in three years' time. Despite the shares doubling in price since January they may still be worth a look if you believe Terry won't put in a repeat performance, The Times' Tempus wrote.SkyePharma's time may have arrived. After having spent the better part of the decade trying to convince everyone of the merits of their asthma treatment Flutiform markets seem to have finally stood up and listened. The drug combines ingredients from successful AstraZeneca and GlaxoSmithKline drugs. In response, the company's shares have leapt five-fold in the intervening twelve months as the company launched its product in Japan as well as in 15 European countries. The latter market alone, from which it obtains a 10% royalty, may be worth £250m. Nonetheless, the company may be hampered by the reputation of its founder for flamboyancy and for "over-promising and under-delivering". He was forced out in 2006. Even so, it has a full and promising range of products. At yesterday's closing price the stock looks attractive, Tempus says.Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.AB