Current Analysis: Iomart Group
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Iomart Group PLC (IMRTF) provides managed cloud services. The company's reportable segment includes Easyspace and Cloud Services.
The Cloud Services segment provides managed cloud computing facilities and services, through a network of owned data centers to the larger SME and corporate markets.
The Easyspace segment provides a range of shared hosting and domain registration services to micro and SME companies.
It generates maximum revenue from the Cloud Services segment. Geographically, it derives a majority of its revenue from the United Kingdom and also has a presence in the Rest of the World.
iomart Group Plc was founded in 1998 and is headquartered in Glasgow, the United Kingdom.
Three key data points gauge Iomart Group PLC or any dividend-paying firm.
The key three are:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
IMRTF Price
Over the past year, Iomart’s share price fell about 48.6% from $3.70 to $1.90 as of Wednesday’s market close.
If IMRTF stock trades in the range of $1.00 to $3.00 this next year, its recent $1.90 share price might rise to $2.20 by next year. Of course, IMRTF’s price could drop about the same $0.30 estimated amount or more.
My upside estimate of $0.30, however, is about at the mid-point of the average annual price swings shown over the past seven years the company has paid dividends.
IMRTF Dividend
Iomart Group PLC has paid variable semi-annual dividends since August 30, 2016. Iomart’s most recent SA dividend, paid on September 9 to shareholders of record on August 17th, was $0.0445.
The next likely dividend could measure up to an annual forward-looking yield of 3.57%.
IMRTF Returns
Add the $0.07 anticipated annual dividend to Iomart’s estimated $0.30 possible price upside, revealing a $0.37 estimated gross gain per share for the coming year.
At Monday’s $1.90 closing price, a little under $1000 would buy 526 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.02 per share.
Subtracting that likely $0.02 brokerage cost from my estimated $0.37 gross gain per share makes a net gain of $0.35 X 526 shares = $184.10 or about a 18.35% net gain.
This might be about time to pounce on Iomart Group PLC shares. But beware, IMRTF is a Scottish Cloud services company paying variable semi-annual dividends for eight years. Furthermore, the estimated $35.80 annual dividend from $1000 invested comes in at almost 19.4 times greater than the recent $1.90 single share price. The question is what semi-annual dividend payments are forthcoming?
Remember the true value of any stock is best realized through personal ownership of shares.
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Disclaimer: Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall ...
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