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AlphaScreens: Genuine quality not cheap

AlphaScreens: Genuine quality not cheap

There are 21 companies included in the FTSE All Share index that also pass all nine of our Quality screen criteria. As often mentioned, however, screens are a starting point for research and the preponderance of housebuilder shares should be questioned – as I outlined in my magazine column, “Time to pay up for High Quality” (18.09.2019). The incredible run enjoyed by these companies in terms of earnings, combined with the fact that they’re priced as cyclicals (still enabling them to score well on the screen’s PEG criteria), means they pass tests; but that can’t mask vulnerability to asset write-downs if conditions turn sour.

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