Gone fishing

Caught some tiddlers, throwing some back…

Last month I included in the Nifty and Thrifty screens companies that reported their latest full year results more than four months before screening. Although the restriction I’d applied before then, including only companies that had reported recently, ensured results were up to date and guaranteed the screens compared companies reporting over similar periods, they were just too restrictive at this time of year, when few companies are reporting.

This month I’ve freed the Bargain Screen as well:

[Spreadsheet]

There are more potential bargains, although it’s important to recognise the financial condition of some of the companies will have deteriorated since they reported, potentially a year or more ago.

Bloomsbury is a net-net (just). Even though rapidly evolving technology is undermining established publishing businesses I’m surprised to see it among the cheapest stocks in the market. Despite the fact Bloomsbury is a profitable company, the Bargain screen ignores its earning power  and instead measures its market price against the value of its most liquid assets, cash, receivables, and inventory.

Airea is a net-net by a more comfortable margin, and next on my hit-list as I decide which carpet manufacturer to add to the Thrifty 30 portfolio. The other option is Victoria, which has a less chequered past.

Leeds, and Mallett, I’ve rejected, and fashion brand French Connection and computer distributor Northamber are already in the portfolio.

There’s a smattering of corporate finance houses in the Bargain screen this month but I’m avoiding them. Finance houses invest their own money as well as advise other companies, and I’m not planning on outsourcing the stock picking role.

So, Airea and Bloomsbury look like the most promising Bargains to investigate this month.