Category Archives: My Rejected Shares

Ashmore: I Can No Longer Watch After Clients Lose $2.8bn

03 March 2017
By Maynard Paton

Today I’m continuing my hunt for Watch List shares by revisiting Ashmore (ASHM). I first placed the company on my Watch List during March 2015.

Here are the attractions that prompted this revisit:

* Fantastic financials: The books showcase a 67% operating margin and a £601m net cash and investment hoard

* Boardroom billionaire: Management continues to be led by the company’s founder, who has £1bn riding on the share price

* Conducive (post-Brexit) currencies: Group revenue is earned almost entirely in USD while costs are expensed mostly in GBP

As usual, I’m applying a question-and-answer template to help me pinpoint companies that match the criteria set out in How I Invest. I’m looking for as many Yes answers as possible. Continue reading

Shoe Zone: I’m Worried About Revenue And Have Given The Share The Boot

08 February 2017
By Maynard Paton

Today I’m continuing my hunt for possible investments by revisiting Shoe Zone (SHOE). I first placed this company on my Watch List during March 2015.

Here are the attractions that prompted this revisit:

* Owner-aligned boardroom: The executive family management boasts a 50%/£90m shareholding

* Generous dividend payments: The group will soon have distributed all of its earnings as ordinary and special dividends for the last two years

* Straightforward accounts: The books showcase net cash, modest capex and high returns on equity

As usual, I’m applying a question-and-answer template to help me pinpoint companies that match the criteria set out in How I Invest. I’m looking for as many Yes answers as possible. Continue reading

Cambria Automobiles: The Boss Owns 40% And The P/E Is 7

11 January 2017
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at Cambria Automobiles (CAMB).

Here are the initial attractions that prompted this research:

* Owner/entrepreneur boss: The company’s founder retains a 40%/£24m stake, has never sold a share, and continues to serve as chief executive

* Respectable financial progress: The accounts exhibit a 10-year history of mostly rising revenue, profit and dividends

* Interesting valuation: The shares have fallen 25% from their high and currently trade on a single-digit P/E

As usual, I’m applying a question-and-answer template to help me pinpoint companies that match the criteria set out in How I Invest. I’m looking for as many Yes answers as possible. Continue reading

Watch List: Updates On Ashmore, Bioventix, Daejan, Goodwin, Latchways And Shoe Zone

5 August 2015
By Maynard Paton

Today I’m reviewing the six shares that reside on my Watch List. After all, there’s no point in me operating a Watch List if I don’t occasionally review the progress of my potential investments — and ensure I’m all ready to buy when their valuations become more attractive!

So here is what’s happened at my Watch List companies since the initial write-ups.

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Panther Securities: The Boss Has Waived His Pay For 8 Years

30 July 2015
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at Panther Securities (PNS).

Here are the initial attractions that prompted this research:

Thin-cat management: The boss last collected a salary during 2006
Resilient dividend: The payout has not been cut following the group’s 1994 flotation
Interesting valuation: The shares trade at 86% of net asset value

As usual, I’m applying a question-and-answer template to help me pinpoint companies that match the criteria set out in How I Invest. I’m looking for as many Yes answers as possible.

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J Smart & Co: 20 Years Of Dividend Advances But Still Not For Me

10 July 2015
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at J Smart & Co (SMJ).

Here are the initial attractions that prompted this research:

Loyal management: The Smart family has controlled the business for decades
Dependable dividend: The payout has advanced every year since at least 1994
Interesting valuation: The shares trade at 52% of net asset value

As usual, I’m applying a question-and-answer template to help me pinpoint companies that match the criteria set out in How I Invest. I’m looking for as many Yes answers as possible.

Continue reading

BP Marsh: 11% Average NAV Growth For 25 Years

17 June 2015
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at BP Marsh (BPM).

Here are the initial attractions that prompted this research:

Lowly valuation: The shares trade at a 28% discount to the group’s net asset value
Appealing history: Book value has reportedly grown at an 11% annual average since 1990
Owner management: The present boss established the firm and boasts a 63% shareholding

As usual, I’m applying a question-and-answer template to help me pinpoint companies that match the criteria set out in How I Invest. I’m looking for as many Yes answers as possible.

Continue reading

Cenkos: The P/E Is 6 And The Yield is 9%

19 May 2015
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at Cenkos (CNKS).

Here are the initial attractions that prompted this research:

Lowly valuation: The P/E is 6 and the yield is 9%
Appealing accounts: Recent results showed high margins and net cash
Owner management: The directors control 23% of the business

As usual, I’m applying a question-and-answer template to help me pinpoint companies that match the criteria set out in How I Invest. I’m looking for as many Yes answers as possible.

Continue reading

Numis: The Downsides To A Dividend Up 17-Fold

13 May 2015
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at Numis (NUM).

Here are the initial attractions that prompted this research:

Appealing accounts: Recent results showed high margins and net cash
Dividend history: The payout has advanced 17-fold since 1999
Owner management: The directors control 21% of the business

As usual, I’m applying a question-and-answer template to help me pinpoint companies that match the criteria set out in How I Invest. I’m looking for as many Yes answers as possible.

Continue reading

Dewhurst: A P/E Of 8 But I’m Not 100% Convinced

23 April 2015
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at Dewhurst (DWHA).

Here are the initial attractions that prompted this research:

Loyal management: Dewhurst has been a family-run business since its formation in 1919
Rising dividend: The payout has advanced every year since at least 1999
Interesting valuation: The shares could offer a possible P/E of less than 8

As usual, I’m applying a question-and-answer template to help me pinpoint companies that match the criteria set out in How I Invest. I’m looking for as many Yes answers as possible.

Continue reading

Zytronic: The Dividend’s Up 5-Fold Yet I’m Still Not Sure

02 April 2015
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at Zytronic (ZYT).

Here are the initial attractions that prompted this research:

Appealing financials: Accounts showcase 15%-plus margins and an asset-rich balance sheet
Rising dividend: Payout has advanced 5-fold between 2005 and 2014
Interesting valuation: The shares could offer a possible P/E of 11

As usual, I’m applying a question-and-answer template to help me pinpoint companies that match the criteria set out in How I Invest. I’m looking for as many Yes answers as possible.

Continue reading

Ashmore: 66% Margins And £547m Net Cash

11 March 2015
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at Ashmore (ASHM).

Here are the initial attractions that prompted this research:

Majestic financials: Accounts showcase 66% average margins and £547m net cash and investments
Hefty insider ownership: Founder/chief exec enjoys £808m shareholding
Interesting valuation: The shares offer a trailing dividend yield of 5.9%

As usual, I’m applying a question-and-answer template to help me pinpoint companies that match the criteria set out in How I Invest. I’m looking for as many Yes answers as possible. Continue reading

Shoe Zone: Why This £69m Shareholding Could Be Worth Watching

02 March 2015
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at Shoe Zone (SHOE).

Here are the initial attractions that prompted this research:

Simple business: It’s a retailer of cheap shoes
Cash-rich: Latest balance sheet showed cash of £9m and no debt
Owner-aligned bosses: Family management boasts 55%/£69m shareholding

As usual, I’m applying a question-and-answer template to help me pinpoint companies that match the criteria set out in How I Invest. I’m looking for as many Yes answers as possible. Continue reading

Microgen: High Margins And Cash Rich But Not For Me

24 February 2015
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at Microgen (MCGN).

Here are the initial attractions that prompted this research:

High margins: 30% reported for 2013
Cash rich: Latest update reported £25m net cash
Veteran boss: Executive chairman appointed during 1998 and boasts £7m shareholding

As usual, I’m applying a question-and-answer template to help me pinpoint companies that match the criteria set out in How I Invest. I’m looking for as many Yes answers as possible. Continue reading