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Compass Shares Could Head North A Lot Faster, Once the Fundamentals are Appreciated

By Malcolm Stacey | Monday 12 February 2018

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.

Hello, Share Scrummers. When the going gets tough out there in the Big City, as now, the sensible approach is to buy shares in companies which may be hit by the general situation, but which seem as strong as an ox and could be among the first to bounce back in the almost inevitable rally.

One such outfit is the mighty Compass (CPG), the world-class commercial caterer and office manager. Recent three monthly results show income was up by 6% on last time. Meanwhile, it’s cutting back on expenses. And it’s winning new customers while keeping nearly all its old ones.

For the dividend-lovers among us, Compass has boosted its pay-outs ever year for more than a decade. There’s also a track record of special divis and buy-backs. That’s a sure sign of management confidence. And yet the share price has not really got going in that period. It’s time that Shareland took more notice of its reliability and reputation. And that could at last start to happen.

I keep harping on about rising GDP in most countries, with Britain being an embarrassing exception. But Compass is a worldwide company if ever there was one so that improving foreign growth should be a benefit.

As it is so strong in the USA, Big Donald’s tax cuts are also expected to increase profits. The company has been doing well in Turkey and South America.

So all in all, we have a company large enough to withstand most knocks in the currently volatile share world. And a long record of doing well for shareholders. The company has been involved in take-overs worth £265 million in the quarter under review. They include the acquisition of Unidine, a giant US caterer and healthcare supplier.

And now point me to the Punter’s Return.

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