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28 July 2021
By Maynard Paton
One of my favourite screening strategies is to hunt for attractive growth companies with unloved share prices.
The criteria I use for these searches are:
- A negative share-price performance since the start of the year;
- A compound 5-year earnings growth rate of 10% or more;
- A forecast 1-year earnings growth rate of at least 0%, and;
- Net borrowing of zero or less (i.e. a net cash position).
The other day the filters returned only 14 matches:
I selected ASOS because the company:
- Had the largest market cap on the list;
- Boasts an incredible growth story, and;
- Recently issued a trading statement that wiped 18% off the share price.