Growth portfolio candidates

Growth candidates

Producing a fresh screen for growth candidates shows that four of the ten candidates from 3 May are no longer showing for the following reasons:

Xaar - As at Friday 7 June they were on a prospective P/E of 23, so failed on that basis.  The shares had risen from 507p on 3 May and closed Friday at 638p, but this morning announced increased guidance for the year.  Consequently the SP is now at 789p and one analyst this morning is estimating 41.8p for the current year and 44.2p next year.

IDOX - Fails on a relative strength of -19.8%, following their recent profit warning (see my posts on 29 & 31 May).  As a result EPS expectations for have been reduced, for 2013 by 17% & 2014 by 19%, although this would still show growth in those two years of 50% & 21% respectively.

First Derivatives - Fails on a relative strength of -1.3%.  Although its SP has not lost value over the last month (up 1.8%) while the FTSE All Share has declined, its performance over 12 months is a little below the All Share.  They announce full year results on 18 June, so one to watch, as they do pass all the other criteria of the growth screen. There is not a great deal of liquidity in this share, with only a 50% free float (directors holding most of the shares), so little trading between results.

OMIP - Fails on a relative strength of -5%.  The SP has fallen 7.5% since early May, probably on the back of a 3% reduction in 2014 EPS expectations.  Another stock with just a 50% free float, so little trading between results.

Of the six that remain Globo is up 1.7%, ITV up 9.6%, Bereley up 3.4%, Wilmington up 3.5%, Filtrona down 6.3% and 888 Hldgs down 12.6%.

There are seven additions to the list, that are worthy of further analysis:

Company	Rolling P/E	Est. EPS 1yr growth	PEG	ROE	P/BV	Operating Margin
Brightside (BRT)	7.23	16.9%	0.43	15.7%	1.38	20.6%
Walker Greenbank (WGB)	12.2	25.0%	0.49	16.8%	2.87	7.70%
Pennant International (PEN)	11.6	19.4%	0.55	23.1%	3.21	11.0%
Jarvis Securities (JIM)	13.5	17.8%	0.76	77.7%	12.1	38.5%
Craneware (CRW)	12.0	18.2%	0.87	26.3%	4.22	27.7%
Whitbread (WTB)	18.2	18.0%	0.94	21.6%	3.35	19.5%
Brooks Macdonald (BRK)	17.3	17.3%	0.96	17.3%	3.72	14.6%