- Hikma Pharmaceuticals is our screen's star performer
- Treatt ranks well among small cap main market shares
- Aim like a coiled spring with 43 companies passing at least seven tests
The UK market could be about to shake off its unloved tag in 2021; provided global events don’t upset the wider reflation trade, some of that value could be realised. It also means that some of the quality UK-listed businesses are cheap, too. The most opportunities are to be found on Aim, our screen shows, with 43 companies passing at least seven out of nine tests.
On the main market, the stand-out company is Hikma Pharmaceuticals (HIK) which is the only to score 9/9. The long-term opportunities for the business which is well positioned in the manufacture of generic medicines (where long-term patents have expired) add to the positive case underlined by its crucial supply-chain role in the pandemic.
Of smaller companies listed on the main market, natural extract business Treatt (TET) is one of those to stand out. It fails two tests - including the forecast free cash flow requirement. We often warn that screens are only a starting point for research and that’s true of negative screen results as well as positive ones. For investors looking to do more homework on Treatt, Phil Oakley gave the company his full analysts’ treatment recently in Investors’ Chronicle.
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