Category: Stock Watch

Risk-off market

risk illustration

The market has been risk-off in the last few weeks. Why? It’s anyone’s guess. The Talking Heads will say inflation, price of lumber rising, price of lumber falling, geopolitical tensions… If only they could tell us before the event instead of finding reasons for why things happened after the event.

Time to Get Out of Tech Stocks? If So, Into What for Returns?

Tech stocks were strong performers last year. The pandemic meant that providers of remote services like Zoom Video Communications or Peloton Interactive experienced massive sales growths, while a whole host of cybersecurity and cloud hosting companies did well alongside the usual big players like Microsoft, Apple and Amazon. However, as the economy bounces back from the disruption of COVID-19, tech stocks have slumped.

KAINOS

THE SETTING Kainos (Greek for fresh, innovative) was launched in 1986 when the old British IT champion ICL recognised the quality of computer science graduates from Queen’s University Belfast. ICL had a new project involving electricity network analysis and Queen’s had just set up one of the first university incubator companies, Qubis, which was keen […]

Screening For My Next Long-Term Winner: AG Barr

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 […]

How to work out whether a firm is good acquirer

Richard uses a trick from Judges Scientific’s playbook to assess local hero Scientific Digital Imaging. Both companies acquire scientific instrument manufacturers using a “buy and build strategy”. Last month we worked out how to populate Google Maps with SharePad data to find local companies to invest in. Today, we will take the process a stage […]

Screening For My Next Long-Term Winner: JD Sports Fashion

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 […]

Scapa has had a rocky three weeks. Its market capitalisation is down by 50%. Is it a buy?

THE SETTING After nine years of impressive revivification under CEO Heejae Chae, the specialist tapes maker Scapa has just delivered three tingling episodes in three weeks. It could have stabilised now but it’s worth well under half its starting price. Knock one came on the day of its annual results, 21 May. The results were […]

Screening For My Next Long-Term Winner: Jupiter Fund Management

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 […]

Screening For My Next Long-Term Winner: Domino’s Pizza

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 […]

Screening For My Next Long-Term Winner: Victrex

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 […]

RM: Will profit endure?

Richard considers whether the supplier of educational resources and software services can sustain profitability and reignite growth. There’s a good chance, he thinks, which makes RM an intriguing proposition at its current valuation. In my last article, we took a tour through SharePad and RM’s annual report to check its profit was real. RM is […]

RM: Is profit real?

Richard investigates RM, one of the stock market’s great survivors, starting with just one question. It takes him on a twisty trail… Before we get into the numbers, some reasons why RM, a supplier of 50,000 educational products and IT to schools and nurseries and on-screen marking services to exam boards, is worthy of investigation: […]

Screening For My Next Long-Term Winner: Accesso Technology

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 […]

Screening For My Next Long-Term Winner: Hargreaves Lansdown

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 […]

Screening For My Next Long-Term Winner: Games Workshop

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 […]

Screening For My Next Long-Term Winner: Plus500

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 […]

Screening For My Next Long-Term Winner: Warpaint London

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 […]

Evaluating a hot tip

Psst, company XYZ is going great guns, it’s shooting for the moon, get in before it is too late!!! In today’s article, Richard uses SharePad to evaluate Clipper Logistics, a tip he received anonymously on the Internet. Tips passed online are sometimes little more than ramps, invitations to boost the tipster’s wealth by buying shares […]

Screening For My Next Long-Term Winner: PayPoint

I don’t know about your shares, but my portfolio was thumped during this month’s market sell-off. The drubbing prompted me to consider whether I should remain invested in my racy growth stocks and contrarian recovery plays — or seek out some alternative opportunities instead. My latest SharePad trawling has therefore centred on dividends — which […]

Screening For My Next Long-Term Winner: Character

My SharePad screening for buying opportunities has short-listed Character (LSE: CCT) as a possible longer-term investment. The attraction here is a quite extraordinary story about buybacks. You see, since 2006, this small-cap has bought back shares every year to reduce its overall share count by a huge 60%. What’s more, the purchases have been an […]

Screening For My Next Long-Term Winner: CMC Markets

In this article I continue my hunt for shares that could deliver market-beating returns… …and this time my SharePad system has identified CMC Markets (LSE: CMCX) as a potential longer-term investment. CMC is a high-margin, cash-rich and owner-run business that I believe could sit well within a diversified income portfolio — despite the firm’s earnings […]

Motorpoint: A car dealer that stands out from the crowd

Financial statistics from SharePad and non-financial data from the company itself all indicate Motorpoint is no ordinary car dealer. If you’ve bought a vehicle from the company, or read its annual reports, you’ll probably know why. My article on Electrocomponents showed how I find most of my investing ideas with the simplest of SharePad filters, […]

Stock Watch: Hill & Smith Holdings

Shares in Hill & Smith Holdings (LSE:HILS) have been a very solid investment in recent years. The company’s strategy of focusing on niche infrastructure markets with significant regulation and health and safety characteristics has seen its businesses grow and become increasingly profitable. Total returns to shareholders have increased by 258% over the last five years. […]

Stock Watch: Superdry

Superdry wants to create a global lifestyle brand by selling premium, high quality and affordable clothing to people. Its brand may not be as recognisable as leading sportswear brands such as Nike or outdoor brands such as North Face but its distinctive logos with Americana and Japanese graphics are not an uncommon sight. Superdry is […]

Searching for companies paying out more of their profits

One of the main considerations for people investing in shares these days is the dividend income they will get from owning them. With a world of low interest rates on savings accounts and bonds and a change in the rules for taking pension income the choice of dividend-paying shares has arguably never been more important. […]

Stock Watch: Abcam – is lower profitability worth paying for?

Abcam shares are more popular than ever. Perhaps they’re worth it. Nailed on growth stock There’s no doubt Abcam has grown. In performance terms it’s about ten times better than it was when it floated in November 2005. Revenue in its first year as a listed company (to June 2006) was just under £20m. Eleven […]

Tech recruiter is statistically attractive, but is it special?

There are two questions I ask of all companies I might invest in. Do the statistics indicate the business is highly profitable and, if they do, can I identify what makes it special? SharePad can answer the first question, and it can help with the second. Today I’m looking at Harvey Nash because it satisfies […]

Stock Watch: Redrow

The state of the housing market – and the direction of house prices in particular – is a key driver of Britain’s economy. When house prices are going up, people feel wealthier, banks are happy to lend money against property and economic activity tends to increase. More houses are built, more people move home, more […]

Stock Watch: Ashtead Group

Ashtead makes its money by renting out equipment to construction and industrial companies – things like aerial platforms, forklift trucks, tools, diggers, cranes, power generators and pumps. It makes most of its profits in America and its shares have been a terrific investment. They have been a proverbial ten bagger over the last decade. After […]

Stock Watch: Castings

Castings plc is a foundry business. Foundries are factories which produce metal castings. Castings has two in the UK – in the West Midlands and South Yorkshire – which take scrap steel and alloys and turn them into castings up to 40kg in weight. It also has a machining business which allows it to turn […]

Stock Watch: RPC

RPC (rigid plastic containers) designs and manufacturers plastic products for packaging markets. The company makes thousands of different products such as plastic bottles, food containers, plastic tubes, paint containers, wheelie bins and bin liners. Plastic is everywhere in our lives and there is a good chance that most of us use or come across an […]

Stock Watch: James Halstead

James Halstead has been in business since 1915. It started out dyeing, finishing, waterproofing and rubberising textiles that were used in rainwear and outdoor clothing. Today it has established itself as a leading manufacturer and distributor of high quality flooring for commercial, contract and domestic markets. Its main commercial brand is its Polyflor vinyl flooring […]

Stock Watch: Watkins Jones

Stock Watch: Watkins Jones Watkins Jones is a property developer, best known for building private student accommodation. It floated on AIM in March 2016. The company makes money from three sources at the moment: Building student accommodation units for professional investors Managing student accommodation units for professional investors Building private residential accommodation The bulk of […]

Stock Watch: Smart Metering Systems (AIM:SMS)

I recently wrote about Smart Metering Systems in my exclusive weekly newsletter for SharePad and ShareScope customers. It’s an interesting company so I have decided to dedicate a Stock Watch to it. Smart Metering Systems (SMS) has been in business since 1995. The company’s roots were established following the deregulation of the domestic gas meter […]

Stock Watch: FW Thorpe

FW Thorpe was founded in 1936 and has been listed on the stock exchange since 1965. The company designs and manufactures professional lighting systems for commercial markets. It has been very successful in carving out a profitable niche for itself and its shares have proven to be a very decent long term investment. What makes […]

Stock Watch: FW Thorpe

FW Thorpe was founded in 1936 and has been listed on the stock exchange since 1965. The company designs and manufactures professional lighting systems for commercial markets. It has been very successful in carving out a profitable niche for itself and its shares have proven to be a very decent long term investment. What makes […]

Stock Watch: XP Power

XP Power is based is headquartered in Singapore and has manufacturing sites in Vietnam and China. The company makes power control systems which convert power from an electrical mains supply to a safe level to be used in its customers’ products. It sells its products into the Industrial, Healthcare and Technology sector where they are […]

Does Tesco buying Booker make sense?

Mergers and takeovers are part and parcel of the investing world. However, I think it’s fair to say that last week’s (27th January 2017) announcement that supermarket giant Tesco (LSE:TSCO) was buying cash and carry operator Booker (LSE:BOK) was something of a surprise. Takeovers or acquisitions as they are commonly known are a very grey area for investors. Are […]