I made a note to myself to see how Chemring (LON:CHG) has progressed over the last month. CHG dropped to c 215p on 21 Nov, and has risen back to 239.8p. It is slightly ahead of the Footsie over 1 month.
Looking at Stockopedia, CHG passes 3 screens:
- Z-score shorting
- Earnings downgrade momentum shorting
- Phil Fisher growth
So, it makes it onto 2 shorting screens.
The Fisher growth screen requires that the 5 yr sales CAGR is greater than the median, has a sales growth streak, and a few other requirements. Unfortunately, I’m not sure that is necessarily a good sign if the expansion has been fuelled by debt.
Bull case: CHG has a new CEO who has experience in turnarounds.
Bear case: defence cuts may harm CHG further
Honestly, I don’t know how all this will turn out, but I will continue to watch from the sidelines.