These two stocks showed up because, despite their strong fundamentals, their share prices underperformed the FTSE All-Share Index, particularly since the Brexit vote in 2016 (see Chart 1). For instance, XLMedia, which was listed at 49 pence in 2014, last traded at 48 pence, despite surging to £2.12 in January 2018. Yet, through the rise and fall of its share price, its fundamentals continue to improve. Similarly, -Playtech has not captured investors’ interest since the Brexit vote.
SINGAPORE (May 13): Two UK gambling-related stocks stood out during our recent stock filter to help identify growth stocks. Playtech, a developer and provider of software platforms for both online and land-based gambling operators, had a five-year compound annual growth rate for cash flow, net profit and revenue that was higher than its growth in price over a five-year period.
XLMedia — which was listed on the Alternative Investment Market (AIM) of the London Stock Exchange in 2014 — is an online performance marketing company that has reported consistently positive operating cash flow and free cash flow since IPO.
