CHG – Chemring – a tiny update

I made a note to myself to see how 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:

  1. z-score shorting
  2. earnings downgrade momentum shorting
  3. 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 mcturra2000

Computer programmer living in Scotland.
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