Broker Liberum’s weekly screen always makes quite a lively read.
Its latest missive points to the merits of buying stocks that are trading on low price to book ratios.
This strategy would have delivered well above average returns.
Using this approach, investment firm SVG (LON:SVG) and corporate finance house Oakley Capital (LON:OCL) are ‘key buys’, Liberum said. They screen as cheap, while the market is attributing “little upside potential” of another of Liberum’s picks, Vertu Motors (LON:VTU).
It also believes Centamin (LON:CEY) will be re-rated once the perceived risk of operating in Egypt dissipates.
“Geopolitical risk is a heightened concern, particularly while permits remain outstanding for the stage-four expansion,” it Liberum said.
“However we anticipate a favourable outcome with previous judgements indicating it is likely to be thrown out of court… eventually.”
The broker sees a bounce to around 60p in the next three to six months.
The stock is currently trading around the 50p mark.