By Malcolm Stacey | Tuesday 14 March 2017
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
You’ve probably guessed already that I mostly prefer future prospects to past performance when assessing if a share should attract my hard-earned. Thus a balance sheet is of interest to me - but not quite as much as a bit of old-fashioned imagination when trying to second guess if a service or product will fly in the next few years.
A relatively high P/E ratio is not off-putting if the company in question has a rosy outlook. And a loss this year is not a disaster if money has been spent on a snazzy new factory or on acquiring a promising competitor.
Now the main reason why I have shares in Zytronic (ZYT) is the exciting world of robotics. You’ll have been deluged by recent publicity from all quarters about how this branch of technology is rocketing ahead. Lots of interviews on the news and special tv and radio programmes and the like.
Now though Zytronic sounds like something from the sci-fi ‘fifties, it is not actually doing robots, but it is in the related world of touch technology. You will already have used its touch screens - buying a train ticket, using a hole in the wall machine, finding your way in a strange town etc, etc. But this is only the beginning in a brave new world of techno wizardry.
Zytronic is what you would call a niche company. It provides something which larger industries really need.
The share has been in my bag for two or three years. During which time it is up by 75%. I think it will accelerate now, just because of demand for its technology - a technology you see everywhere these days.
The P/E ratio I have is a manageable 15.6. And the divi is nearly 3%. But that should improve if the future glows as much as I expect.
See you in the Punter’s Return?
Never miss a story.
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments are turned off for this article.
Search ShareProphets |
Stock market news |
Recent Comments |