I have found that the William O'Neil screen is a great source of growth share ideas. Microgen (LON:MCGN) was added to his screen on Friday after the share popped above its 50 day MA for the first time in a while. I currently have a 50% position in Microgen and have held throught recent weakness. I bought when the price looked like it was going to breakout in mid December 2017.

As it has reappeared in O'Neil's screen, I have looked at it in more detail. A recent RNS quotes a press release from a Hong Kong insurance comapny that has entered into an agreement to use Microgen's Aptitude software to enable them to prepare for the IFRS 17 standard. The CFO of the insurance company had some good things to say about Aptitude software but it was comments made by Tom Crawfrom (CEO of Aptitude) that caught my attention:

We are fully committed to helping insurers manage the incredible complexities of IFRS 17. This is a billion-dollar problem that must be tackled by an industry already under significant pressures. With almost 40% of insurers expected to kick off their implementation projects in Q2 2018, we advise that insurers act now and avoid a potential skills shortage in the market.

Potentially, then, a huge growth market for Microgen over the next few years.

In a recent trading update, their growth rates are 16% for their Financial Systems division and 30% for Aptitude. Recent acquisitions add significantly to these organic growth figures.

I'm hoping to top up on any positive signs of accumulation although its hard to judge with Microgen as volume is very low with the occasional sporadic spike.

Appreciate any comments.


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