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 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, cartridge/propellant actuated devices, pyrotechnic devices for satellite launch and deployment. Munitions segment includes missile and ammunition components, propellants, warheads, fuzes, energetic materials, medium and calibre ammunition. more »
