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.


About the Author's Blog

Mark Carter Profile Image Promotional
Mark Carter's Blog

Investment blog of an amateur private investor. The blog also contains non-investment related posts. ...read more or visit website »


Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


Do you like this Post?
Yes
No
2 thumbs up
0 thumbs down
Share this post with friends



Chemring Group PLC is a United Kingdom-based company engaged in the design, manufacture and sale of counter- improvised explosive device (IED) equipment, countermeasures, pyrotechnics and munitions. The Company operates in four business segments: Counter-IED, Countermeasures, Pyrotechnics and Munitions. Counter-IED segment includes IED detection equipment, chemical and biological threat detection equipment, IED electronic countermeasures, explosive ordnance disposal equipment and demilitarisation services. Countermeasures segment includes expendable active and passive countermeasures for naval and air platforms, land-based electronic warfare equipment. Pyrotechnics segment includes signals and illumination devices and payloads. Munitions segment includes missile and ammunition components. In May 2014, the Company acquired 3d-Radar AS, subsidiary of Curtiss-Wright Corporation. more »

Share Price (Full)
236p
Change
8.0  3.5%
P/E (fwd)
15.8
Yield (fwd)
2.1
Mkt Cap (£m)
440.7



  Is Chemring fundamentally strong or weak? Find out More »


What's your view on this article? to Comment Now

 
 
You are feeling neutral

Use the £ sign in front of a ticker to turn £VOD into Vodafone PLC

You can track all @StockoChat comments via Twitter


About Mark Carter

Mark Carter

Follow

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



Stock Picking Tutorial Centre


Related Content

Stock Picking Simplified

Stockopedia takes your stock picking to the next level with cutting edge Stock Reports & Screening tools.


Get started
or Take a Tour to find out more.
Join us at the London Investor Show next Friday at Olympia