- Political and cyclical risks should be considered interpreting our GARP screen
- It is important to balance the build back narrative and central bank policy risk
Our Aim GARP screen topper, Steppe Cement (STCM) is a company with a lot of interesting risks and opportunities to consider. Firstly, cement is one of those Jekyll and Hyde products in the eyes of environment, social and governance (ESG) conscious investors: one the one hand cement manufacture is incredibly carbon intensive and on the other hand, it is essential to building the infrastructure that will ready humanity for a lower carbon future. Steppe Cement is an investment holding company, but one of its subsidiaries has its main manufacturing facility in Kazakhstan, so political risk is also a consideration.
Another of the Aim GARP high-fliers, Somero Enterprises (SOM), is also involved in the wider activities around construction. Its laser-guided equipment is used for placing concrete slabs in buildings. Building back and the great reopening are narratives that may have suited this company but central banks are being forced into actions that may force a re-think.
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