Boris Johnson's election triumph was a big boost for the shares of UK-focussed businesses. It's always good to assess fundamentals for longer term prospects of companies experiencing this sort of a bounce. Our growth-at-right-price (GARP) screen is a useful tool for assessing where there is underlying growth to complement the value premium for UK shares that has been unwinding since Friday.
- It’s interesting to follow the trend of a company’s performance against stock screens. Having scored full marks for the last couple of months, packaging specialist Macfarlane (MACF) now fails our forward earnings per share test.
- Going in the other direction, insurer Legal &General (LGEN), improves from passing six to seven tests out of eight. Now it only fails the free cash flow test.
- There are only seven tests for companies on the FTSE All Small Companies index. Leisure firm Ten Entertainment Group (TEG), which has been a big riser following the election, is amongst those scoring 7/7 on our screen.
- On Aim, there are seven companies that get full marks on the small cap tests, including gold mining and UK infrastructure focussed businesses.
This will be the last AlphaScreen of 2019. Thank you to all our subscribers and we wish you a merry holiday season and a happy and prosperous new year.
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