Screening for shares with a consistently high margin and ROE leads to model portfolio specialist Tatton Asset Management. Maynard Paton reviews the small-cap’s impressive financials, efficient workforce, owner-aligned founder and bold growth target. Today I have revisited a ShareScope screen that applies two ratios favoured by ‘quality’ investors — operating margin and return on equity […]
Wynnstay has paid an increased dividend every year since 2004 yet its shares trade nearly 40% below net tangible assets. Maynard Paton weighs up whether the agricultural supplier is a value bargain or a value trap. I am back again looking for ‘value bargains’ and revisiting a screen that identifies companies trading at less than […]
Canadian 200-bagger Constellation Software has inspired Software Circle to become a serial acquirer of ‘vertical market’ software businesses. Maynard Paton studies the promising early progress of AIM-traded emulator. Mark Leonard has been described as the “best capital allocator you have never heard of“. According to Forbes, Mr Leonard is now worth $5 billion after he […]
Many investors like to buy shares that are popular or those of companies that are doing well. Phil takes a look at why sometimes buying shares that professional investors are betting against can generate big gains. Finding unpopular shares Most investors make money by buying shares that eventually go up in price. However, it is […]
A liking for ‘value bargains’ prompts Maynard Paton to search again for asset-rich shares with depressed ratings. Screening for low price to books and net cash positions leads to engineer Castings. I always love a traditional ‘value bargain’. Hence this revisit to an old screen that pinpoints companies trading at less than book value. Importantly, […]
The market has become very unhappy with buy-and-hold investor Nick Train. Maynard Paton studies Lindsell Train Investment Trust and reckons Mr Train’s fund-management business could now be valued on a P/E of less than 2. Could now be the time to back Nick Train? The buy-and-hold fund manager was for years feted for selecting blue-chip […]
RWS has lifted its dividend for 19 consecutive years yet the shares currently offer a 6.5% yield. Maynard Paton studies the translation group’s acquisition history, profit adjustments and management changes. An illustrious dividend history and a worthwhile yield have brought RWS to my attention. The language-translation group presently offers: An unbroken record of dividend increases […]
Obscure small-cap Colefax has repurchased 75% of its share count since 1999. Maynard Paton weighs up the fabric designer’s impressive buyback record and cash-rich financials versus its modest growth history and awkward corporate governance. The email I received was intriguing: “The numbers speak for themselves. The company has repurchased 75% of shares outstanding since 1999, […]
Poor record-keeping at a small subsidiary prompted an adverse audit at Victoria last year. Maynard Paton looks at other areas of the carpet manufacturer’s accounts in which the auditor identified ‘material errors’. Oh dear. Today I am writing about Victoria, a £228 million carpet manufacturer that last year attracted attention following an adverse audit. When […]
Yü Group has delivered wonderful multi-bagger returns during the last few years. Maynard Paton recaps the energy supplier’s entrepreneurial leadership and remarkable recovery following an accounting bombshell. Everybody loves shares that keep on rising. SharePad lists 37 names that have consistently delivered 15% or more annualised returns during the last one, three and five years: […]
Rockwood Strategic is buying underperforming small-caps, revitalising their boards and pushing for takeovers. Maynard Paton reviews the investment trust’s ‘activist approach, portfolio performance and current holdings. Rockwood Strategic could be the ideal choice for anyone wishing to capitalise on the sorry state of UK small-caps. A check of your own portfolio may support Rockwood’s belief […]
Property Franchise has consistently exhibited attractive financials and will soon combine with rival Belvoir. Maynard Paton delves into the small-cap’s balance sheet, acquisitive history, franchising KPIs and merger prospects. Today I am studying Property Franchise, an estate-agency franchising business that appeared on my radar after I reviewed fellow estate-agency franchisor Belvoir last year. To recap, […]
Phil takes a look at a strategy of identifying unloved shares as a way of generating market beating returns. In my last couple of articles, I’ve discussed some of the issues that investors face when looking at good companies. One of the biggest difficulties faced is that the shares of such companies can be highly […]
Fashion website Sosandar plans to open shops to bolster its sales and margins. Maynard Paton weighs up management’s bold financial ambition against the wider sector’s haphazard progress. Fashion website Sosandar provides a fascinating dilemma for small-cap growth investors. Bulls will highlight the online retailer’s very rapid expansion and bold ambition to raise profits to £10 […]
A search for ‘owner managers’ leads Maynard Paton to the impressive dividend record of Lok’nStore and the ‘extremely stable’ nature of self storage. I love ‘owner managers’ — company bosses with significant shareholdings who want to build wealth for the long haul. Such leaders do seem to act differently to standard chief executives. A hefty […]
Significant, acquisition-free expansion is prized by many investors. Maynard Paton studies the organic growth record of pay-by-mobile small-cap Fonix Mobile. Whisper it, but a few UK small-caps are still progressing well and maintaining resilient share prices in this difficult market. Fonix Mobile is a good example. Recent full-year results from this £206 million business showed […]
The UK stock market is undoubtedly cheap, but that doesn’t mean it won’t stay that way. Phil uses SharePad to show how you might sift this unpopular market for undervalued shares and creates 4 new SharePad stock screening filters for good measure. When I first entered the world of investing over a quarter of a […]
Screening for consistently high margins and ROE leads to currency manager Record. Maynard Paton weighs up the small-cap’s super cash flow, well-paid workforce, diversification ambitions and bold targets. I have once again revisited a SharePad screen that applies two ratios favoured by ‘quality’ investors — operating margin and return on equity (ROE). The exact criteria […]
Devoted company bosses do not always create great returns for outside shareholders. Maynard Paton studies chocolate retailer Hotel Chocolat and the board’s decisions and composition. I love ‘owner managers’ — company bosses with significant shareholdings who live and breathe their business and want to build wealth for the long haul. Typically, entrepreneurs, and owner-managers who […]
Screening for consistently high margins and ROE leads to property franchisor Belvoir. Maynard Paton weighs up the small-cap’s acquisitive history, super cash flow, visible management and immediate prospects. Today I have revisited a SharePad screen that applies two ratios favoured by ‘quality’ investors — operating margin and return on equity (ROE). The exact criteria I […]
Newspaper publisher Reach trades on a P/E of 3. Maynard Paton believes the rock-bottom rating reflects a pension scheme ‘black hole’. Let me start by confessing this article covers pension deficits. What follows is therefore not thrilling and does require some concentration. But please stick with me, especially if you have ever fallen victim to […]
Screening for a growing dividend, lowly valuation, net cash and decent director ownership leads to 40-bagger James Latham. Maynard Paton studies the timber distributor’s history, financials, management and prospects. I have embarked on further ‘back to basics‘ filtering to unearth a potential long-term winner for my portfolio. This new screen identifies companies that offer rising […]
WANdisco has owned up to ‘significant accounting irregularities’ and the prospects for shareholders now look grim. Maynard Paton revisits the software developer to identify the warning signs Small-Cap Spotlight Report Revisited: WANdisco (LSE: WAND) You can become a better investor by occasionally visiting the stock-market graveyard. One company that now seems destined for the cemetery […]
Cerillion’s shares have five-bagged since their pandemic low and remain near their all-time high. Maynard Paton studies the software group’s revenue profile, cash conversion and current valuation. Another month and another round of ‘back to basics’ filtering. Introduced earlier this year to identify James Halstead, this screen shortlists companies that offer cash-flush balance sheets, robust […]
Finding good investment ideas among companies that have floated on the stockmarket recently can be like looking for a needle in a haystack. Richard thinks he knows what to look for, maybe it is Moonpig. Some of my favourite new investment ideas in recent months have been recent flotations, companies like Marks Electrical and Dr. […]
Richard surveys the latest annual reports for promising long-term investments. Big Technologies, Digitalbox, Somero, and Xaar catch his eye, but only one of them holds his gaze. Still, a strike rate of one out of four is not bad. Almost every weekday I open a table of all the shares listed in London in SharePad […]
From touring with Led Zeppelin to a £193 million shareholding: Phil Dudderidge has enjoyed enormous success leading music-equipment specialist Focusrite. Maynard Paton recaps the investment story. The market continues to wobble and I have therefore kept with my ‘back to basics’ filtering. Applied the other week to identify James Halstead, this screen short-lists companies that […]
A wobbly market prompts Maynard Paton to search for potential ‘safe havens’. Filters for net cash, high margins and a pandemic-defiant dividend lead to vinyl flooring specialist James Halstead. Recent market wobbles have prompted some ‘back to basics’ filtering. Hence a new screen to identify companies that have strong balance sheets, robust margins and a […]
Specialist SIPP firm Curtis Banks has seen its dividend go up but shares go nowhere during the last five years. Maynard Paton now wonders whether the small-cap’s recurring income and high margins make it a ‘QARP’ stock. Shares offering ‘Quality At a Reasonable Price’ have been hard to find during the last few years. But […]
WANdisco has raised $217 million since 2012 yet has never made a profit. But could deals with Microsoft and Amazon finally trigger a sales boost? The board’s optimism is not backed by its share dealing.
April is typically a strong month – perhaps because of all the tax-selling clearing and reducing sell pressure. New ISA money tends to enter the market too. Cash is a position, but many punters feel it burning a hole in their pockets and so tend to end up spending it.
I like companies that boast significant net cash. I therefore apply certain filter criteria to identify some reasonable cash-flush businesses.
I run my filter every week, usually on a Saturday morning. By running the filter every week, it allows five trading sessions to pass and therefore potentially offer up new stocks. Time is a trader’s greatest asset, and it makes no sense to run the filter every day when almost all of the stocks will be the same.
How do you answer that age-old investment conundrum – when to get in and when to get out? Here’s a technical approach to finding the best recovery candidates as they emerge.
I am probably jinxing it now, but owning shares in Howden Joinery has never lost me sleep. Despite the pandemic and a fall in profit, this year’s annual report has the same calming effect it does every year, and not just because of the pictures. Howdens explains the business very well, and quietly delivers on the promise.
Over the years I have ignored Kingspan because it is big, acquisitive, and supplies building materials. My gut reaction to these facts is that Kingspan is best avoided, but my gut could well be wrong.
One of my favourite SharePad screens identifies good-quality companies that have grown without acquisition. One such is Best of the Best.
For some time now IG Group has been flashing on my SharePad filters. The three screenshots just below show IG offers: High margins; Decent returns on equity; Cash-rich accounts; Attractive five-year growth; A lack of past acquisitions, and; A modest P/E. Those characteristics are an unusual mix in a market presently bereft of obvious quality […]
Happy 2021! I trust SharePad will help bring you good fortune in what could be another twelve months of financial thrills and spills. As usual I plan to trawl the market for interesting shares that I hope assists your company analysis and stock-picking. I start the year with Avon Rubber, a FTSE 250 member that […]
This year has confirmed that most of the news is at best irrelevant to me as an investor. Worse, the news stressed me out. It regularly fed my mind with impossible problems to solve. Companies I admired closed down, temporarily I hoped. They raised money in emergency fund-raisings. They furloughed staff. So far, the determination […]
I know this is going to make me sound like an alcoholic, but I rarely drink soft drinks. When a reader requested an overview of the soft drinks sector, I was not, therefore, particularly enthusiastic. For me, liking the product, or at least seeing its value, is a prerequisite for investment, and, on health grounds, […]
I am always looking for ‘multi-baggers’ — investments that can double, triple, quadruple or more. And here’s some very good news: I have stumbled on a company that can find them for me. Not just the occasional five-bagger or ten-bagger mind, but 20-baggers. It’s incredible stuff, especially as the track record of success extends for […]
There is no shortage of stocks that are delivering triple digit returns. Scholar Rock, Miragen, Zedge, Socket Mobile – even Tupperware is up nearly 1,000%. Source: ShareScope – Alpesh Patel Special Edition (click on image to enlarge) The problem is hindsight is great, but each of these and the other climbers have huge problems in […]
Today I have returned to one of my favourite SharePad screens. This screen applies two ratios favoured by ‘quality’ investors — operating margin and return on equity (ROE). The main filter criteria are: 1) An operating margin (latest and 10-year average) of 20% or more, and; 2) An ROE (latest and 10-year average) of 20% […]
Before I started fishing for a share to investigate for this week’s article, I culled my personal filter library. Many of the filters are derivations, refinements that effectively render older filters redundant. Some are failed experiments. Being a simple sole, I cut the library down to four: The old ones are the good ones – […]
This article was not supposed to be about paper maker James Cropper. I set out to write about Animalcare, a veterinary pharmaceutical company, but I quickly became disillusioned, wretched even. You probably will hear about Animalcare one day, because it is an interesting business, but it is also complicated and its complicatedness was epitomised by […]
I am not a great fan of the fund-management industry. I cannot think of another sector where the employees collect enormous salaries while the customers pay hefty fees and sometimes get nothing in return. Quite often us amateur investors are better off with simple index trackers rather than falling for the industry’s persuasive advisers and […]
First, a wealth warning. The last price-to-book ‘bargain’ I looked at for SharePad was Hammerson. Back then the property group’s £5 billion asset base could be acquired for a £1.6 billion market cap. Investors were in theory able to purchase £1 of assets for just 30p. Twelve months on, and the share price below tells […]
Let me start by thanking you for clicking on an article with Headlam in the title. Rest assured, not everyone will want to read about this rather dull business that has suffered badly during the pandemic. But for us contrarians, now may be the time to consider such stocks — unloved names that the market […]
A SharePad customer, Chris, reminded me of the power of ranking recently, when he emailed to say (among other things): “I find that I am playing with spreadsheets to get the data in place rather than actually making decisions. I guess sometimes too much data can be detrimental…” Decisions are hard, and messing around with […]
Has the market become too obsessed with ‘pandemic-proof’ shares? I ask because my SharePad screening has brought Frontier Developments to my attention. The shares of this computer-game developer have leapt 66% so far this year as industry sales rally during the lockdown. However, Frontier’s accounting looks rather questionable and the near-£800 million market cap seems […]
One way to invest during the pandemic is to consider shares that have climbed higher as the market has dropped. Such companies may well be ‘safe havens’ — businesses that are coping well with the lockdown, or perhaps even benefitting from the crisis. I applied the following simple criteria within SharePad to identify potential ‘pandemic-proof’ […]
While the stock market and the pandemic may have stabilised, I’m still thinking about financially strong firms. We never know when the next shock will happen, and a cash cushion gives us confidence a company will make it through when revenue melts away. I spent the last two articles experimenting with filters to find financially […]
Let me start with a confession.This Covid-19 ‘Special’ may not be all that special. I have just applied a new SharePad screen to seek ‘quality bargains’ amid the market chaos — and sadly the results were not that inspiring. The problem is nothing to do with me or my filters or SharePad. Instead, the Covid-19 […]
Recent market ructions have sent many shares tumbling — and perhaps created some buying opportunities. Amid the mayhem, I devised a straightforward screen. I simply looked for decent-sized businesses that were still expected to grow, paid a dividend and were conservatively financed, too I applied the following criteria within SharePad to identify some respectable candidates: […]
Cash flow movements can often indicate whether or not a business enjoys a powerful operational advantage. A strong business might: Receive customer payments upfront for goods/services it has yet to deliver, and/or; Pay suppliers months after goods/services have been received. However, a weak business might: Receive customer payments months after its goods/services have been delivered, […]
‘Run your winners’ is popular stock-market advice. Great companies often remain great investments for a lot longer than most people expect… … and can deliver life-changing rewards to anyone who refrains from selling out too soon. Where can we find potential winners to run? I thought the best performing shares of 2019 would provide a […]
This article has not turned out as I had expected. I searched on SharePad for magnificent dividend histories, and thought I would be evaluating a business with glorious financials and tip-top management. I have instead ended up with accounting alarm bells and a dissident shareholder trying to oust the boardroom. The screen I applied in […]
Studying free cash conversion is vital when evaluating a set of accounts. The measure compares free cash flow to reported earnings, and can indicate whether a business is a ‘cash fountain’ or a ‘cash guzzler’. Ideally we want to own companies that generate plenty of spare cash, because such cash can: * Underpin accounting profits; […]
Fallout from the demise of Thomas Cook reminds Richard of the virtues of vertical integration. In the month since the demise of Thomas Cook, the company that invented package tours, there has been much talk of rivals who will benefit from the fact that perhaps 2.5m Thomas Cook customers will be looking elsewhere for their […]
Dynamic growth shares are among the market’s most exciting investments. Find a business that has expanded rapidly and offers the prospect of further earnings growth — but also has an overlooked share price — and you could be on to a winner. Let’s use SharePad to pinpoint a possible example. Filter criteria These days many […]
Richard invents a new filter that promises to weed out big acquirers in a drive for simplicity he hopes will make investigating his next company easier. Complications tend to keep investors awake at night and wakeful nights are not conducive to long-term investment. You join me today on a quest for simplicity. Keeping it simple […]
Buying a share at a discount to its book (or net asset) value ought to be the safest way of investing. Indeed, what could go wrong if you can effectively buy assets worth £1 per share for, say, 50p? The reality — sadly — is not always that simple. Let me show you what I […]
A wise man once advised investors to stick to their circle of competence. Richard uses SharePad to keep his eye on the prize, and it leads him to Bloomsbury Publishing… My base filter in SharePad currently returns a total of 596 shares listed in London. It does not do anything clever. It just excludes the […]
Quality companies undergoing temporary problems can often become attractive investment opportunities. On that basis, perhaps AG Barr is worth closer inspection. The soft-drinks manufacturer famous for Irn-Bru recently warned that profits would be lower than expected… and the share price plunged accordingly: However, AG Barr does boast a quality track record. During the last 40 […]
Imagine this. You find a blue-chip company that offers: * 21 years of consecutive dividend increases, with the last ten years showing 10% per annum growth; * Management guidance of further 10% annual dividend growth “over the medium term”, and; * A share price with a 10% dividend yield. Too good to be true? Well, […]
Today I am revisiting the share screen that pinpointed Games Workshop back in January. The shares of the quirky wargaming retailer have soared more than 60% since that review… …and I wonder whether the same screen can unearth another promising opportunity. To recap, the exact criteria I am re-using are: 1) Annualised earnings per share […]
Today I have revisited a share screen that 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; 2) An ROE (latest and 10-year average) of 20% or more. Any business […]
Finding local businesses listed on the stock market is easy with the help of SharePad and Google Maps. Richard maps the market to find out what’s good in the ‘hood. When I wrote about Portmeirion last time, I promised to review a second “old favourite” in this article. In the meantime, though, I have been […]
This in-depth article covers one of the most impressive UK growth stocks of the last 20 years — Domino’s Pizza. Domino’s appeared on my radar after I revisited one of my previous SharePad screens. The screen in question searches for companies with dependable dividends and reasonable yields. The exact criteria are: 1) 10 or more […]
Today I have returned to the share screen I employed to pinpoint Victrex the other week. 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; […]
This week I am tracking down a potential long-term winner by employing two ratios favoured by ‘quality’ investors. The first measure is operating margin, which represents the percentage of sales converted into profit. In theory, a company exhibiting a high operating margin may enjoy pricing power over customers — which in turn may indicate a […]
I am convinced the very best shares to own are often led by executives who truly act in the interests of ordinary shareholders. In particular, bosses who: * do not dilute investors by issuing shares willy-nilly; * create dependable returns through a rising dividend, and; * own a lot of shares themselves… …should deliver better […]
Years ago I read Super Stocks, an investment book that claimed to reveal “powerful new ideas” to uncover “opportunities for spectacular profits”. I sadly can’t recall identifying any “opportunities for spectacular profits”… …but the book’s “powerful new ideas” did make some sense — not least the concept of identifying companies that undertook significant research and […]
This article has not turned out as I had expected. I was hoping to study a quality growth business that had seen its share price slump to attractive levels… …but instead I have ended up untangling some very awkward accounts and guessing whether management changes are signalling problems ahead. Sit back and brace yourself. The […]
Quality companies often produce exceptional returns for ordinary investors. Just ask Terry Smith or Nick Train. These ace fund managers have delivered wonderful gains by investing in first-class businesses such as Diageo, Reckitt Benckiser and London Stock Exchange. Let’s use SharePad to find a quality company to study for ourselves. Immense figures imply an incredibly […]
Being able to analyse international shares — at no extra cost! — is a wonderful feature of SharePad. And finding overseas shares within SharePad is easy, too. Simply click on Other Lists within the main toolbar… …and take your pick from the various US and European indices available. I have chosen the top 500 US […]
Could now be the time to return to dynamic growth shares? Wonder-stocks such as Fever-Tree, Boohoo.com and Keywords Studios are all well below their highs of 2018… …and I wonder whether the widespread selling has created a super-growth bargain somewhere in the market! Let’s employ SharePad to find out. I bought the shares at £8 […]
Before I start looking at Plus500 (LSE: PLUS), I have some good news…. …you can now employ my SharePad screening criteria with just a few clicks! The process involves SharePad’s amazing Filter library. This facility gives you complete access to numerous pre-defined filters that have been used within various SharePad articles. Just follow these instructions […]
The key thing to stress at the beginning and, as many of you will already be well aware, there are many ways to become a good investor. There are many different techniques, many different styles and strategies from fundamental analysis, technical analysis to even astrology and Biorhythms. It sounds like a cliché but the best […]
How did your portfolio fare during 2018? If you managed to side-step the market falls, very well done. For the rest of us — including me — I guess we can only cross our fingers and hope the FTSE performs a lot better during 2019! Still, with share prices in the doldrums and many investors […]
Before I go any further, let me just state that I am not here to say “I told you so”. But whenever I have lost money on a share, I have always found going back to see where I went wrong to be very instructive. In fact, trying to spot the warning signs from any […]
Many years ago, one of my favourite sources for investment ideas was the Financial Times. However, the FT’s articles did not interest me, and nor did the Lex column. Instead, I studied a small table that was tucked away on those pages that listed every share price. You see, this table named the shares that […]
I am always looking for shares that can double, triple, quadruple or more during the years ahead. And one good way of finding such great investments is to study shares that have, well, already doubled, tripled, quadrupled or more. Take Fever-Tree (LSE: FEVR). This tonic-water specialist has rewarded savvy investors handsomely since the firm floated […]
Portmeirion Group is based in Stoke on Trent and is a leading maker of homeware products such as tableware, cookware, placemats, candles and fragrances. It trades under some well-known brand names such as Portmeirion, Royal Worcester, Pimpernel, Spode and Wax Lyrical. Around half its products are manufactured at its own site in Stoke on Trent […]
Ten years ago, Morrisons was doing reasonably well. Under the leadership of Dutchman Marc Bolland it was wooing customers with a very simple and powerful strategy – offering good food at low prices. When he left to run Marks & Spencer, the supermarket industry was beginning to change and the company lost its way. It […]
