My ShareScope Articles

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08 April 2020
By Maynard Paton

I have just applied a new SharePad screen to seek ‘quality bargains’ amid the market chaos — and sadly the results were not that inspiring.

The problem is nothing to do with me or my filters or SharePad. Instead, the Covid-19 crisis has turned so many companies upside down…

…that trying to identify dependable shares right now is not exactly straightforward.

But fear not! To make amends, I have run through my previous SharePad articles — and highlighted some interesting names for your consideration.

Read my full Covid-19 Special article for SharePad.

Maynard Paton

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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.

Read my full AB Dynamics article for SharePad.

Maynard Paton

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16 February 2020
By Maynard Paton

Cash flow movements can often indicate whether or not a business enjoys a powerful operational advantage.

A strong business might:

• Receive customer payments upfront for goods/services it has yet to deliver, and/or;
• Pay suppliers months after goods/services have been received.

However, a weak business might:

• Receive customer payments months after its goods/services have been delivered, and/or;
• Pay suppliers upfront for goods/services it has yet to receive.

SharePad allows us to easily pinpoint companies that operate with advantageous cash flow movements. Boohoo, the prominent online fashion retailer, offers a good example of what to look for.

Read my full Boohoo article for SharePad.

Maynard Paton

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26 January 2020
By Maynard Paton

‘Run your winners’ is popular stock-market advice.

Great companies often remain great investments for a lot longer than most people expect…

… and can deliver life-changing rewards to anyone who refrains from selling out too soon.

Where can we find potential winners to run? I thought the best performing shares of 2019 would provide a good starting point.

One business that did well during 2019 was Greggs, the well-known bakery chain, which saw its shares rocket more than 80%.

Greggs is actually a textbook example of ‘running your winners’. The shares had already surged 100-fold before last year’s price jump.

Read my full Greggs article for SharePad.

Maynard Paton

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20 December 2019
By Maynard Paton

This SharePad article did not turn out as I had expected.

I had thought I would be evaluating a business with glorious financials and tip-top management.

I ended up studying accounting alarm bells and a dissident shareholder trying to oust the boardroom.

The SharePad screen I used looked for companies that offered:

1) A 20-year (or more) record of dividend increases, and;
2) Forecast dividend growth for the current year.

I selected Mears, a £269 million provider of housing-maintenance and social-care services, due to its forecast 5.3% yield.

Read my full Mears article for SharePad.

Maynard Paton

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07 December 2019
By Maynard Paton

I recently hosted a SharePad webinar, during which I demonstrated three screens used in my SharePad articles and evaluated three companies using various SharePad features.

The filters I used were taken from my SharePad articles on Renishaw, Rightmove and Medica, and the companies I evaluated were XP Power (01:00), Headlam (15:30) and Sopheon (29:00). 

I finished the SharePad webinar with a Q&A session (45:00). 

Just click the image below to watch a recording of the webinar.

You can import the financial charts I used during the webinar into your SharePad setup by following these instructions from my UNOFFICIAL SharePad guide for new subscribers.

Maynard Paton

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20 November 2019
By Maynard Paton

Today I have revisited a share screen that applies two ratios favoured by ‘quality’ investors — operating margin and return on equity (ROE).

The exact criteria I re-used were:

1) An operating margin (latest and 10-year average) of 20% or more, and; 
2) An ROE (latest and 10-year average) of 20% or more.

This time I have pinpointed Dotdigital, a £265 million software business that is blessed with a 30% operating margin and a 30% ROE.

Read my full Dotdigital article for SharePad.

Maynard Paton

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25 October 2019
By Maynard Paton

Studying free cash conversion is vital when evaluating a set of accounts.

The measure compares free cash flow to reported earnings, and can indicate whether a business is a ‘cash fountain’ or a ‘cash guzzler’.

Ideally we want to own companies that generate plenty of spare cash, because such cash can:

• Underpin accounting profits;
• Indicate an attractive business, and;
• Fund welcome dividends.

By employing SharePad, I identified Rightmove as an elite cash producer.

Read my full Rightmove article for SharePad.

Maynard Paton

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30 September 2019
By Maynard Paton

Dynamic growth shares are among the market’s most exciting investments.

Find a business that has expanded rapidly and offers the prospect of further earnings growth — but also has an overlooked share price — and you could be on to a winner.

Medica — an AIM-traded supplier of radiology reports to hospitals — could be one such opportunity. The company’s forecast P/E of 15 appears modest given the 300%-plus earnings growth seen during the previous five years.

Read my full Medica article for SharePad.

Maynard Paton

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04 September 2019
By Maynard Paton

Buying a share at a discount to its book (or net asset) value ought to be the safest way of investing.

Indeed, what could go wrong if you can effectively buy assets worth £1 per share for, say, 50p?

The reality — sadly — is not always that simple.

Let me show you what I mean by using SharePad to evaluate Hammerson, a FTSE 250 real estate investment trust with net tangible assets of £5 billion and a market cap of only £1.6 billion .

Read my full Hammerson article for SharePad.

Maynard Paton

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09 August 2019
By Maynard Paton

Quality companies undergoing temporary problems can often become attractive investment opportunities.

On that basis, perhaps AG Barr is worth closer inspection.

The soft-drinks manufacturer famous for Irn-Bru recently warned that profits would be lower than expected… and the share price plunged accordingly.

However, AG Barr does boast a quality track record. During the last 40 years for example, the group has lifted its annual dividend by an average 11% — and shareholders have never seen their income cut.

Read my full AG Barr article for SharePad.

Maynard Paton

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15 July 2019
By Maynard Paton

Imagine this. You find a blue-chip company that offers:

• 21 years of consecutive dividend increases, with the last ten years showing 10% per annum growth;

• Management guidance of further 10% annual dividend growth “over the medium term”, and;

• A share price with a 10% dividend yield.

Too good to be true?

Well, that is the situation at Imperial Brands.

Read my full Imperial Brands article for SharePad.

Maynard Paton

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24 June 2019
By Maynard Paton

Today I am revisiting the share screen that pinpointed Games Workshop back in January.

The shares of the quirky wargaming retailer have soared more than 60% since that review…

…and I wonder whether the same screen can unearth another promising opportunity.

This time the screen returned 26 matches, and I plumped for the largest on the list — sports retailer JD Sports Fashion.

JD’s earnings per share have surged from 6p to 27p — an average of 35% per annum — during the last five years.

Read my full JD Sports Fashion article for SharePad.

Maynard Paton

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16 June 2019
By Maynard Paton

Today I have revisited a share screen that applies two ratios favoured by ‘quality’ investors — operating margin and return on equity (ROE).

The exact criteria I re-used were:

1) An operating margin (latest and 10-year average) of 20% or more, and;
2) An ROE (latest and 10-year average) of 20% or more.

This time I have pinpointed Jupiter Fund Management, a £1.7 billion fund manager with a mighty 41% operating margin and a robust 24% ROE.

Read my full Jupiter Fund Management article for SharePad.

Maynard Paton

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24 May 2019
By Maynard Paton

My latest SharePad article covers one of the most impressive UK growth stocks of the last 20 years — Domino’s Pizza.

Domino’s appeared on my radar after I revisited one of my previous SharePad screens.

The screen in question searched for companies with dependable dividends and reasonable yields.

I selected Domino’s because I was already aware of the pizza chain’s dynamic growth history — and wondered why the shares had fallen to offer a useful, 4%-plus dividend income.

Read my full Domino’s Pizza article for SharePad.

Maynard Paton