11/9/17
This is a portfolio of shares that I have been selecting and very recently bought. It's a growth portfolio, mainly consisting of small and medium companies, which have been screened using the following filters:
1. Stockopedia Stock Rank (SR) > 80.
2. Quality Rank (Stockopedia) > 70.
3. Price within 10% of Ben Graham's Rule of Thumb.
4. ROCE > 10% (preferably 15%).
5. P/E < 3 yr earnings growth rate (egr).
6. Rising sales/ turnover, profit, eps, free cashflow, (dividends).
7. Piotroski >6, Altman Z score >3.
8. Quick ratio>1, Current ratio >1.2.
8. Low risk of earnings manipulation.
9. FCS ps > norm eps and div ps.
10. Net debt < x3 net profit.
11. Stable margins.
12. Director buying/selling reasonable.
13. Reasonable share dilution.
14. Positive company outlook.
15. Other investors seem comfortable with investment.
The aim of the filters is to identify companies which are growing in terms of turnover, profits, earnings per share and cash. They must have a strong balance sheet, not be overly diluting equity and the directors not selling en mass.
There is a small amount of discretion, if a company just misses the mark on one or two of the filters, it might still be acceptable. Director buying/selling and other investors views is difficult to quantify.
There are 14 companies: AMO, CAKE, FOUR, GAW, IGR, MACF, PETS, PLP, PSN, XLM, SOM, STAF, STHR, TAP.
I have tried to diversify and invested £3,000 in each company. The portfolio is available on Stockopedia as Edwinlefever's/ Queens Gate Fund.
Monday, 11 September 2017
Friday, 1 September 2017
31/8/17
Trade 5- Proactis PHD 570 shares bought at 178p (SL 149), £1020 (£5 comm). Bought in isa, as spread for spb was 6%.
Reasons- Growth company mc 167 mill (computer/software services). Trading update 22/8 v pos. P/E 15, peg 0.6, 1% y, roce 6%, z 7, pit 4, cr 0.6. No recent dir buy/sells. News/research pos.
The roce is far less than I would like and the Pit score and cr are also low. It's the low peg and the positive trading statement that have attracted me.
1/9/17
Trade 6- Everyman (EMAN) 606 bought at 167p (SL 139), £1010, £10 comm.
Reasons- Growth company (posh cinemas) mc ~90 mill. P/E 31 peg 0.6, roce 1.4%, pit 7, z 6, cr 0.6. Dir buying in April. Half yearly report (1/9) pos, news/research pos.
This is a roll-out. The p/e is higher than I like and the roce paltry. I did quite well with Prezzo, set up by the same entrepreneurs (less well with Tasty). The roce would have to be higher for me to invest longer term. The peg, outlook and director buying have influenced me. A better price would have been good; I was tempted after the trading statement in July, but dithered and then forgot.
Trade 5- Proactis PHD 570 shares bought at 178p (SL 149), £1020 (£5 comm). Bought in isa, as spread for spb was 6%.
Reasons- Growth company mc 167 mill (computer/software services). Trading update 22/8 v pos. P/E 15, peg 0.6, 1% y, roce 6%, z 7, pit 4, cr 0.6. No recent dir buy/sells. News/research pos.
The roce is far less than I would like and the Pit score and cr are also low. It's the low peg and the positive trading statement that have attracted me.
1/9/17
Trade 6- Everyman (EMAN) 606 bought at 167p (SL 139), £1010, £10 comm.
Reasons- Growth company (posh cinemas) mc ~90 mill. P/E 31 peg 0.6, roce 1.4%, pit 7, z 6, cr 0.6. Dir buying in April. Half yearly report (1/9) pos, news/research pos.
This is a roll-out. The p/e is higher than I like and the roce paltry. I did quite well with Prezzo, set up by the same entrepreneurs (less well with Tasty). The roce would have to be higher for me to invest longer term. The peg, outlook and director buying have influenced me. A better price would have been good; I was tempted after the trading statement in July, but dithered and then forgot.
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