Richard uses his “Skin in the game” table to find companies whose directors are major shareholders. The experiment starts off badly with Asset Co., but gets better. Frontier Development and Focusrite could be great owner-managed businesses. To recap: We can use SharePad to find companies that are run by managers who are themselves significant shareholders. […]
Month: November 2019
Weekly Commentary: 25/11/19 – Superstocks
Superstocks I have been living with value stock affliction for some time. It can be irritating particularly when the wind is blowing the wrong way. In the past it has led to text messages from colleagues saying “What price did you get into G4M – oh dear you don’t have any” – just after they […]
Is there life on the High Street?
With Debenhams going bang, the demise of Mothercare, and Carpetright finally succumbing to their challenges (Carpetright was taken over – but at a price only slightly higher than the all time low), the narrative of the high street being dead seems to be coming true with every new departure. Thomas Cook went bust a few […]
Screening For My Next Long-Term Winner: Dotdigital
Today I have returned to the share screen I employed to pinpoint Victrex earlier this year. To quickly recap, this screen applies two ratios favoured by ‘quality’ investors — operating margin and return on equity (ROE). The exact criteria I re-used were: 1) An operating margin (latest and 10-year average) of 20% or more, and; […]
Weekly Commentary: 18/11/19 – What Goes Around….
What Goes Around…. It is clear the technology growth bubble is now starting to unwind but the difficult question is where to go to next? I have wondered about the mining sector in previous weeks and last week I used some SharePad screens to find cheap, well capitalised, quality companies. In truth I have been […]
Investing alongside managers with skin in the game
Richard uses SharePad to find companies whose managers are also significant shareholders. They are likely to be building businesses for the long-term, he says. The reasons for investors to look kindly on owner-managers, executives that have large shareholdings in the firms they run, are ably described in this article by Harry Fraser, manager of the […]
Weekly Commentary: 11/11/19 – The Cult of Equities
The Cult of Equities Each week that passes my excitement is building. Value is coming back. I have felt like a fish out of water as what appear to me to be millennials tell me I am crazy not buying the latest hot stock on a PE of 45X. And these millennials are buying their […]
Support & Resistance
Support and resistance are two common concepts when it comes to technical analysis. They are the most basic but also the most important points when plotting levels on a chart. Technical analysis is a self-fulfilling prophecy as many traders and investors look at the same levels on charts, and therefore support becomes support because people […]
Weekly Commentary: 04/11/19 – Profiting from Folly and Disaster
Profiting from Folly and Disaster Old fashioned companies such as TP ICAP have started putting strong trading statement out which is strange times indeed. This is an old-fashioned voice broker of financial products. The staff are renowned for loud and boisterous traditional city behaviour which resulted in a £15m settlement with the regulator for their […]