***SharePad New Subscriber Special Offer***
Readers of my blog can claim one month of free data. Click now for details. #ad
14 May 2020
By Maynard Paton
One way to invest during the pandemic is to consider shares that have climbed higher as the market has dropped.
Such companies may well be ‘safe havens’ — businesses that are coping well with the lockdown, or perhaps even benefitting from the crisis.
I applied the following simple criteria within SharePad to identify potential ‘pandemic-proof’ names:
- A share-price change this year of 0% or more;
- A market cap of £250 million or more, and;
- A profit of £1m or more.
On my shortlist was Hikma Pharmaceuticals, which has rallied 17% so far this year. Other attractions included:
- An appealing 22% margin and 19% return on equity;
- Profit being twice the level of debt;
- A forecast 18x P/E not appearing too extreme, and;
- The directors owning a useful shareholding.