Brent Crude is priced over $83 per barrel at the time of writing. There has been some fluctuation on the news flow around Iran, but the upward trend in recent months has been reflected in the share prices of some oil companies in our momentum screen.
- Royal Dutch Shell ‘A’ shares (RDSA) pass every test of our FTSE All Share screen. For UK investors, Shell’s ‘B’ shares (RDSB) are a better choice as they allow a dividend access mechanism which mitigates withholding tax from the Netherlands. Although the two share classes are highly correlated, they aren’t priced the same and the B shares only pass 7/8 of our tests (failing on 3-mth price momentum).
- Other oil companies which pass 7/8 tests are BP (BP.) and smaller exploration company, Tullow Oil (TLW). Both firms fail on the criteria that EPS growth must be forecast to be over 10 per cent for the current and next financial years.
- Two other companies from our FTSE All-Share screen pass 8/8 tests. These are both smaller companies that are also included in the FTSE All Small Companies index we screen for our main market small cap screen. Asset Manager Liontrust (LIO) and TT Electronics (TTG) had perfect scores.
- The Aim market has seen more companies pass all the momentum criteria since we launched the screen. Six companies boast perfect scores although they no longer include Fevertree (FEVR), which has seen its share price come off in the last week.
