[SharePad] Screening For My Next Long-Term Winner: VENTURE LIFE

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23 April 2021
By Maynard Paton

I like companies that boast significant net cash. My reasons include:

  • Limited risk of funding difficulties should trouble strike;
  • Management might be sensible by holding ‘rainy day’ money;
  • The cash position may have resulted from superb profit generation, and;
  • The share price could be less volatile (especially if the cash position represents a large part of the market cap).

I therefore applied the following filter criteria within SharePad to identify some reasonable cash-flush businesses:

  • Trailing twelve-month net borrowings of no more than zero (i.e. a net cash position);
  • A market cap of at least £50 million;
  • Net cash of at least 10% of the market cap, and;
  • A trailing twelve-month operating margin of at least 1% (to include only profitable companies).

I found 38 matches, and Venture Life attracted my attention because the company:

  • Carried a significant 28% of its market cap as net cash;
  • Operated within the generally favourable healthcare sector, and;
  • Published impressive results last month.

Read my full Venture Life article for SharePad.

Maynard Paton

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