Stock Screens 

Momentum goes for overseas earnings

Momentum goes for overseas earnings

A noteworthy aspect of last quarter’s classic momentum screen is that it had a heavy skew towards 'live' bid situations. This proved something of a mixed blessing. Only one of these takeover plays was taken out during the following three months – GKN – and it delivered a strong 14 per cent return for the portfolio. Meanwhile, Sky (SKY), where a long-running bid process still rumbles on, put in a muted performance, but Smurfit Kappa (SKG) shares sunk after management saw off its would-be bidder, International Paper. Overall, these situations represented a mild drag on the overall performance of the 'long' portfolio, which delivered a capital-only return of 5.2 per cent in the three months.

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