Participants in this funding will gain a stake in this company. Origin Invest is a relatively small company that has shown strong past earnings growth, possessing future potential. Origin Invest is not yet rated by the market as its stock carries small market capitalisation of less than £500 million. Omissions from broker’s circulars, has the benefit to investors of making the stock unexploited and niche. Origin has more to gain from new investors discovering them, and as its followings develops so will the share price.
Dividends yield is forecast to be at least 4 per cent and will be paid in line with earnings. Dividends are paid twice yearly, with an interim payment after the end of the half year and the final payment after the full years accounts are complete. The management of Origin holds around 20 per cent of the company and so are highly motivated to perform the forecasted dividend.
Synopsis for Origin Invest Stock selection
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Competitive advantage due to a strong position in niche business area. |
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A modest price earnings (P/E) ratio relevant to earnings growth rate |
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A positive growth rate in earnings per share of at least 15 per cent. |
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High relative strength of the shares compared with the market. |
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Strong liquidity, low borrowings and high cash flow. |
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A small market capitalisation of £100 million. |
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A dividend yield paid in line with earnings. |
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Share holder orientated management. |
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An optimistic Chairman’s statement |
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A reasonable asset position. |
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09/10 Accounts |