United kingdom Daily news: Midas update: Software group Idox's quadruple rise

Minggu, 01 Juli 2012

Midas update: Software group Idox's quadruple rise

Midas update: Software group Idox's quadruple rise

By Joanne Hart

PUBLISHED: 08:35 EST, 1 July 2012 | UPDATED: 10:02 EST, 1 July 2012

Markets might be gloomy but some stocks are still offering huge rewards to canny investors.

Shares in software company Idox have almost quadrupled since Midas Extra first recommended the stock in April 2008.

They were 101/2p then, today they are 40p and brokers believe they have further to go.

Midas: Joanne Hart gives her update on software company Idox

Idox provides software that helps its clients save money by offering more services online. Customers include local authorities, private companies and charities and profit growth has been strong.

Last week, chairman Martin Brooks announced a 54 per cent surge in half-year profits to Â£7.3million, fullyear profits are expected to rise 34 per cent to Â£14.1million and the dividend is forecast to grow 33 per cent to 0.8p.

Midas verdict: Midas Extra investors who bought in 2008 have done well and should celebrate by selling 50 per cent to 65 per cent of their shares. New investors should keep an eye on this stock and buy on any weakness.

Traded on: Aim Ticker: IDOX Contact: 0870 333 7101 or idoxgroup.com AVON Rubber is another winner, tipped by Midas two years ago at 102p and today trading at 3031/2p. The company makes rubber masks for military use and tubes used in dairies - an unusual combination, but it works for Avon.

In the year to September 2010, it delivered profits of Â£7.1million. This year, more than Â£11million is forecast, rising to Â£13million in 2013.

Avon's biggest mask customer is the US Department of Defence, where it has a 10-year contract to fit all servicemen.

Even though the US defence budget is under pressure, Avon should still do well from this deal and is gaining customers elsewhere too. On the dairy side, it is winning business as emerging countries drink more milk.

Midas verdict: Shareholders should take some profits at current levels and sell about a third of their stock. But they should not sell totally as the business still has momentum.