I’ve spent the Christmas break tidying up this website a bit, updating the year’s figures and also having a run through my filters to see what opportunities are out there.
Apart from previous holdings that I may buy back into, I have two filters set up on Stockopedia that reflect my ‘value’ approach.
1. Low PE – P/E < 8, div yield > 5% and larger than £20M
2. Near year lows – Price within 20% of year’s lows, Div yield > 4%, P/E < 10 and, again larger than £20M
There are certain sectors that I exclude such as Biotech research (feast or famine), Semiconductors, Automobiles, renewables and REITs (amongst others). I just don’t know enough about most of these to make an informed decision.
From the rest, this is my current list of ideas.
Hilton Food Group (HFG). Supplies food to supermarket chains. Price/Sales is only 0.1 and the 7% yield is covered, however it operates on really tight margins. One wrong move and zero profit.
Investec (INVP).
“Investec plc is a United Kingdom-based company. The Company provides its clients with products and services in the corporate mid-market, bespoke solutions to high-net-worth clients and access to a wealth management offering through its strategic partnership with Rathbones.” [Stockopedia]. Decent Business, good margins, great PE and PEG and DY.
Not bargain basement territory (it has risen fivefold since 2020) but is still at 2018 levels. Hmmm.
Sabre insurance (SBRE). Car insurance
“Sabre Insurance Group plc is a United Kingdom-based holding company. The Company is a motor insurer with a diverse, multi-channel distribution strategy. It is engaged in the writing of general insurance for motor vehicles, including taxis and motorcycles. It has a network of approximately 1,000 insurance brokers across the United Kingdom.” [Stockopedia]
Earnings are volatile, which is reflected in a PEG of 16 currently. PE is 9 and DY is knocking on 10%
Arbruthnot Banking (ARBB). Banking Services
“Arbuthnot Banking Group PLC is a United Kingdom-based holding company. The Company is primarily involved in banking and financial services. Its segments include Banking, Wealth Management, Renaissance Asset Finance (RAF) ” [Stockopedia]
Niche banking and financial lending services. Share price has been on a rollercoaster this year, starting at 900p, hitting 1100p and back down to 900p again. PE 8, useful 6.5% DY, covered twice. Margins a little below average and share price hasn’t really gone anywhere for 5 years.
In addition, these have been on my watchlist and are getting interesting, once again
WPP (WPP). Very undervalued compared to its peers currently and has had a few recent Contract wins.
Pets at Home (PETS). Everyone loves their pets and with the bolt on Veterinary Agreement with CVS renting floorspace it’s at decent value currently.
Time to have a think about the above. Watch this space.