Don't buy or sell Sinclair Pharma plc, Ladbrokes plc or Close Brothers Group plc until you've read this!

Updated
Ladbrokes
Ladbrokes

Shares in Sinclair Pharma(LSE: SPH) have soared by as much as 10% today after it released an upbeat trading update. Notably, the company has signed a US distribution and strategic marketing agreement with Thermi for Silhouette InstaLift, which Sinclair believes will deliver immediate access to the world's largest aesthetics market. Furthermore, Sinclair has created a Brazilian affiliate to sell Silhouette Soft, which is set to be immediately earnings enhancing.

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In addition, Sinclair Pharma's current trading remains strong and it expects to record a 40% rise in revenue in the 2016 financial year. And with its strategic review being completed, Sinclair Pharma is now at the end of its offer period, with the company concluding that it has bright prospects for shareholder value creation as an independent entity.

With Sinclair Pharma expected to remain lossmaking in each of the next two financial years, its share price may come under a degree of pressure in the short-to-medium term. That's especially the case since other healthcare companies offer rising profitability at a low price. As such, it may be prudent to await a lower share price before piling-in.

Bright future

Also reporting today was Close Brothers(LSE: CBG). It reported a positive third quarter, with the banking company recording growth in its loan book, tighter cost control as well as improved trading conditions for its Winterflood division.

Encouragingly, Close Brothers' banking division continues to see robust demand for its specialist lending services, with improving levels of new business. Its loan book rose by 4% versus the same quarter of last year, with the return on the loan book being strong as both the net interest margin and bad debt ratio have remained flat on the first half of the year. And with Winterflood delivering improved performance after a tough first half of the year and Close Brothers' asset management segment posting a solid net inflow, the future of the overall business remains bright.

With Close Brothers trading on a price-to-earnings (P/E) ratio of 10.6, it seems to offer excellent value for money. Therefore, buying now could lead to strong share price gains over the medium-to-long term.

Share price jump

Meanwhile, shares in betting company Ladbrokes(LSE: LAD) have jumped by as much as 10% today after it was announced that it may have to sell 350-400 shops in order for its merger with Gala Coral to proceed. That's because the Competition & Markets Authority said that there may be competition concerns in specific local areas and while it means that the two companies may end up being smaller than first hoped post-merger, the deal appears to at least be on track.

Clearly, the betting industry is undergoing a period of consolidation as revenues and profitability come under pressure. With Ladbrokes trading on a P/E ratio of almost 22, there appear to be much better value options elsewhere.

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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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