Category Archives: My Watch List

Goodwin: I’ve Decided To Keep Watch Despite The High Debt And New LTIP

15 March 2017
By Maynard Paton

Today I’m continuing my hunt for Watch List shares by revisiting Goodwin (GDWN). I first looked at this company during March 2015.

Here are the attractions that prompted this revisit:

* Resilient long-term dividend: The payout was last reduced in 2000 and has since increased 28-fold

* Owner-orientated executives: Veteran family management control a 53%/£69m shareholding

* Opportunity for recovery: Significantly reduced earnings have caused the shares to fall 50% during the last three years

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

Softcat: 44 Consecutive Quarters Of Organic Profit Growth

18 January 2017
By Maynard Paton

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

Here are the initial attractions that prompted this research:

* Illustrious financial progress: The group claims to have recorded 44 consecutive quarters of organic revenue and profit growth

* Owner-aligned boss: The chief executive has been in charge for 10 years and boasts a 7%/£44m stake

* Straightforward accounts: The books showcase net cash, little capex, sound cash generation and no acquisitions

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

CLS Holdings: A 23% Discount To NAV And A Boss With A £294m Shareholding

15 July 2016
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at CLS Holdings (CLI).

Here are the initial attractions that prompted this research:

* Illustrious financial progress: The accounts exhibit a 20-year history of rising net asset value alongside a remarkable record of substantial share buybacks.

* Owner-orientated boardroom: The company’s founder retains a £294m/51% stake and continues to serve as an executive director.

* Interesting valuation: The shares have fallen 30% from their high and currently trade at a 23% discount to the group’s 2015 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

Rotork: The Dividend Has Soared 2,688-Fold In 45 Years

10 February 2016
By Maynard Paton

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

Here are the initial attractions that prompted this research:

* Majestic financial history: The accounts exhibit at least 45 years of rising earnings and dividends, plus lucrative operating margins and super returns on equity

* Culture of long-term, stable leadership: The company has been led by only four different bosses since its 1957 formation

* Interesting valuation: The shares have dropped 50% from their peak and the group’s sizeable exposure to the troubled oil and gas industry could lead to further short-term weakness

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

Aveva: Super Margins, Substantial Cash And Significant Exposure To Oil And Gas

02 February 2016
By Maynard Paton

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

Here are the initial attractions that prompted this research:

* Wonderful accounts: The books showcase long-term growth, super margins and substantial net cash

* Proven and loyal leader: The company has been run by the same boss since the end of 1999

* Significant exposure to oil and gas: The troubled oil and gas industry represents 35-40% of revenue and recent interim results revealed lower earnings. Further weak trading could perhaps create a buying opportunity.

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

AB Dynamics: A Test Share For My Watch List

26 January 2016
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at AB Dynamics (ABDP).

Here are the initial attractions that prompted this research:

* Leader in a niche market: ABDP claims to be the “recognised leader in the supply of autonomous driving robots for vehicle testing”

* Attractive recent growth: Annual revenue has multiplied 6-fold in the last five years, producing high margins and robust returns on equity

* Veteran management: The company founder remains in charge today and continues to boast a substantial 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

Renishaw: Measuring Up Well For My Watch List

20 January 2016
By Maynard Paton

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

Here are the initial attractions that prompted this research:

* Respectable track record: The accounts showcase a long-term record of growth, and are bolstered by high margins and net cash

* Seasoned management: The company founders remain in charge today and continue to boast substantial shareholdings

* Interesting valuation: The shares have dropped 40% from their peak and sizeable exposure to China could lead to further short-term weakness

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

Castings: A Rare Combination In The Current Market

04 September 2015
By Maynard Paton

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

Here are the initial attractions that prompted this research:

Respectable financials: The accounts showcase a dependable dividend, net cash and property assets
Straightforward management: The executives do not collect grandiose wages nor own any options
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

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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Bioventix: 67% Margins From Monoclonal Antibodies

06 May 2015
By Maynard Paton

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

Here are the initial attractions that prompted this research:

Super profitability: Operating margins were a stratospheric 67% in 2014
Asset rich: The balance sheet carries net cash and freehold property
Owner management: The chief exec owns 12% 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

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

Goodwin: All That Matters Now Is What Price To Pay

04 March 2015
By Maynard Paton

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

Here are the initial attractions that prompted this research:

Illustrious financial history: Profits have surged 16-fold since 2000
Owner-orientated bosses: Family management boasts 53%/£107m shareholding
Interesting valuation: The shares are 32% off their high, leaving the trailing P/E at 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

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

Latchways Kick-Starts My Watch List

12 February 2015
By Maynard Paton

So I’ve now reviewed every one of My Shares in my portfolio — see the list of names on the right-hand side of this page.

That means I can finally kick-start My Watch List, the benefits of which I explained in this post.

I’ve decided to adopt a question-and-answer template for My Watch List write-ups. That way I can easily pinpoint any worthwhile shares according to How I Invest.

I am looking for as many Yes answers as possible.

I’m starting today with Latchways (LTC).

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