*
skip to Main Content
enquiries@thearmchairtrader.com

Sign up for our Free Daily Digest newsletter: Actionable insight every morning, designed for the self-directed investor. Find out more

Burford Holdings [BUR] frequently show up in my growth stock searches. It’s a financial services business that provides corporate finance and insurance solutions to lawyers and clients engaged in litigation and arbitration.

The share price has grown by 148% in 12 months which may, at first glance, suggest that it’s a little late to be jumping on board now. However, a PE ratio of 18 and a PEG of 0.89 suggests that there is plenty of growth left.

Gearing is high in relation to its peers, but with interest rates at their current levels, its never been cheaper to borrow. The business has enough cash reserves to easily pay their obligations.

Burford has been implementing an acquisition growth strategy, utilising its high cash reserves to purchase businesses around the world that compliment their existing services.

With just 12% of Burford’s turnover last year coming from the UK, the business is unlikely to be impacted by the instability of the pound as we head towards Brexit.

I purchased at 650p. Here’s the share price graph – what do you think?

(Chart no longer available)

Do bear in mind this isn’t a recommendation to buy this stock. The above constitutes my opinion based on the research undertaken. I urge you to do your own research before you invest.

Check out other featured Growth Stocks

My thanks as always to JD Financial Publishing for providing access to the Company REFS research tool. They are currently offering a 30-day free trial to this fantastic product and I would urge you take a look.

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Michael Morton

Michael Morton

Michael has worked within the Financial Industry for more than 20 years. Starting out as a financial analyst, he has extensive experience working with fund management groups and brokerages.

With an interest in Stocks and Shares, Funds, ETFs and Commodities, his investment focus is medium to long term gains, with the objective of financial security on retirement, and building wealth for his young children for their adult life. His broker of choice is Hargreaves Lansdown.

Comments

Back To Top