Most valuation measures are designed for NON cyclical companies. This can be very misleading for cyclical companies. Are any FORWARD looking valuation ratios good for cyclical companies?
I was looking at the house builders sector. It's highly cyclical and some companies appear to be very good value at the moment. However, the picture will change dramatically when the Bank of England tightens lending and raises interest rates.
Economic cycles should affect all measures of the Stock Rank assessment. ie Value, quality & momentum.
For maximum benefit to all subscribers of Stockopedia, I would like your opinion on the following:
Do those of you that have analysed a few bubbles & crashes have any good ideas on how to approach this? What I am really asking for is:1) Best valuation measures for cyclical companies
2) Best current screening on Stockopedia for cyclical companies. 3) Would anyone like to design a new screen on here especially for cyclical companies?
Your input will be very welcome and is likely to be very valuable to intelligent investors.
Regards.
Warranstar
