There is little change in our FTSE All Share screen, with recruiter Page Group (PAGE), packaging company RPC (RPC) and engineering solutions provider Costain (COST) still the only companies to meet all the criteria. The screen throws up plenty of ideas for further research, although the commonly failed cash conversion test (the proportion of operating profit turned to cash) provides food for thought when selecting companies for sustainable income.
Shares included in the FTSE All Small Companies index have struggled to get perfect scores on our screen. Nine companies pass seven out of eight measures, with the most commonly failed test being the forward earnings growth estimates.
On our Aim screen, MTI Wireless Edge (MWE), Property Franchise Group (TPFG) and Park Group (PKG) still score 8/8. They are joined by Fulcrum Utility Services (FCRM). Fulcrum has lost ground since Investors Chronicle’s Buy update on 5 June; is the higher yield now a sign of value? It is, of course, always risky betting against negative momentum but it could be worth re-visiting the investment case and keeping a watch for when the share price momentum changes.
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