Chemring – a tiny update

Friday, Dec 07 2012 by
2

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.


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Chemring Group PLC is a United Kingdom-based company, which is engaged in developing and manufacturing protection solutions for defense and security markets based on threat detection, countermeasures and energetic material products. The Company operates in three segments: Countermeasures, which is engaged in the development and manufacture of expendable active and passive countermeasures for naval and air platforms, and land–based electronic warfare equipment; Sensors & Electronics, which includes the development and manufacture of improvised explosive device (IED) detection equipment, chemical and biological threat detection equipment, IED electronic countermeasures, network protection technologies, explosive ordnance disposal equipment and demilitarisation services, and Energetic Systems, which includes the development and manufacture of signals and illumination devices and payloads, pyrotechnic devices for satellite launch and deployment, and propellants, among others. more »

Share Price (Full)
236p
Change
0.4%
Mkt Cap (£m)
454.2
P/E (fwd)
14.6
Yield (fwd)
2.2



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About Mark Carter

Mark Carter

I am a private investor living in Scotland. I am a computer programmer by trade.

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