Investor's Champion Blog
Provides refreshingly forthright, independent comment on predominantly small cap companies and specialist investment funds. Informed opinion, based on first-hand research, but pulls no punches in exposing management weaknesses.

Chieftain Group-one of AIM's forgotten minnows

We originally reported on Chieftain Group (CFT) the AIM listed engineering business at the beginning of September.

Today it announced that its R. Blackett Charlton unit had won a contract from Huntsman Pigments to provide engineering maintenance and project services at Huntsman's Greatham site on Teesside. The contract is initially for three years, with an option to extend for a further two years.

Since our note on 8th September the shares have climbed c22% to 167.50p.
The house broker’s full year forecasts for £1.3m of pre-tax profit appear to look increasingly undemanding and even after the recent run the shares still appear to trade at only c10.5x 2006 full year estimates which were issued several months ago.

As one of AIM’s forgotten minnows, which is only covered by the house broker, Chieftain might warrant a little more attention.

 

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