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18 March 2020
By Maynard Paton
Recent market ructions have sent many shares tumbling — and perhaps created some buying opportunities.
Amid the mayhem, I devised a straightforward screen. I simply looked for decent-sized businesses that were still expected to grow, paid a dividend and were conservatively financed.
I applied the following criteria within SharePad to identify some respectable candidates:
- Forecast earnings per share growth of at least 10% this year;
- A market cap of £250 million or more;
- Must have paid a dividend last year, and;
- Net borrowings of less than zero (i.e. a net cash position).
I then ordered the shortlist based on how far each share price had fallen since its 52-week high.
I selected AB Dynamics because, of the names on my shortlist, I knew AB possessed a reputation for ‘business quality’ and its shares had fallen among the furthest.