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17 January 2019
By Maynard Paton
I have been trawling SharePad again with another back-to-basics search.
For this screen I demanded:
- A forecast P/E of no more than 12;
- An operating margin of 15% or more;
- Net borrowing of zero or less (i.e. a net cash position);
- A yield of 4% or more, and;
- A market cap of £150m or more.
One share that stood out within the 16 matches was Plus500.
I remembered this company had issued a positive trading statement just after Christmas:
“Accordingly, with the year ended 31 December 2018 almost complete, the Board anticipates the financial performance will be ahead of current market expectations.”
If Plus500’s recent progress has been better than expected, why then is the forecast P/E just 6.1?