The Lemon Fool

How far does one go in evaluating a potential business to invest in - PZ Cussons cut dividend and price down due to the Nigerian currency, not a holder but have thought about it.

G3lc wrote:How far does one go in evaluating a potential business to invest in - PZ Cussons cut dividend and price down due to the Nigerian currency, not a holder but have thought about it.

Thanks for raising this interesting point. I think there's a lot to be said for keeping it simple. I look at/check the yield on offer, cover and debt of the shares I'm interested in before buying.

The bottom line though is that no-one can tell the future of any share, that's why we diversify.

Ian.

G3lc wrote:How far does one go in evaluating a potential business to invest in - PZ Cussons cut dividend and price down due to the Nigerian currency, not a holder but have thought about it.

Well, for example, one might do this.
That will identify businesses that are financially sound.
Whether they pay a decent dividend is another matter.

It depends how much time and effort you want to expend.

V8

G3lc wrote:How far does one go in evaluating a potential business to invest in - PZ Cussons cut dividend and price down due to the Nigerian currency, not a holder but have thought about it.

For this board you've done all the evaluation necessary. My bold above. They also cut in 2020 so not been a contender since then, 2018 and 2019 might have been in the right yield range, certainly had a long history of increasing dividends.

https://www.dividenddata.co.uk/dividend ... y?epic=PZC

88V8 wrote:

G3lc wrote:How far does one go in evaluating a potential business to invest in - PZ Cussons cut dividend and price down due to the Nigerian currency, not a holder but have thought about it.

Well, for example, one might do this.
That will identify businesses that are financially sound.
Whether they pay a decent dividend is another matter.

It depends how much time and effort you want to expend.

V8

Simoan (the link above refers to a post by Simoan) uses Stockopedia and screens stocks initially using the various filters.

This page from Stockopedia captured 7th Feb 2024.
https://www.stockopedia.com/share-price ... s-LON:PZC/

Although I do not subscribe to Stockopedia I question would I have considered investing in a company with the Quality/Value/ Momentum scores indicated?

Quality ...89 ( pretty good)
Value.... 76 (seen worse!)
Momentum....36 ( what does this mean?)

Overall 79...not bad, eh?

The business appears to be " rated" but it's in an unfortunate market.

(What put me off was the ongoing issue in Nigeria and the poor net margin of <6%. )