Seven ‘sinful’ stocks to avoid
2 Aug 17
With the FTSE 100 on an almost continual rise, which are the ‘red flag’ stocks that investors should watch out for? Investment bank Liberum lists the seven ‘sinful’ stocks in the top 100 they would “prudently seek to avoid”.
Micro Focus
Software and IT firm Micro Focus raised red flags for its governance and compensation and stretched cash dividend cover according to Liberum.
The analysts said: “Micro Focus screens on stretched cash dividend cover, flattered FCF, the earnings manipulation model, governance and compensation – both size of package and weak choice of performance measurement.
“In this case over-reliance on EPS and other financials.”
Tags: Investment Strategy
