Polar Capital Holdings PLC is a publicly owned investment manager. The firm provides its services to professional and institutional investors. It launches and manages equity and balanced mutual funds. The firm also launches and manages hedge funds for its clients. The firm invests in public equity markets across the globe. The firm typically invests in companies in technology, healthcare, and financial sectors. Polar Capital Holdings plc was founded in December 2000 and is based in London, United Kingdom with an additional office in Tokyo, Japan.
The chart of POLR.L is shown below using my normal layout over the past year. The opportunity in POLR.L was brought to my attention by a very experienced VectorVest user at our weekly online meetings.
The green line study above the price shows the VectorVest valuation of the company which is significantly higher than the current share price.
In the window just below the price the blue study shows that forecast Earnings per share (EPS) is rising and this is the engine that’s been driving the share price upwards. Over the past years EPS has risen from 45p to 60p.
On VectorVest the Relative Safety (known as RS) of the earnings stream is ranked as excellent. The share pays a large dividend of over 4% which is well covered by an earnings yield of double that amount. The company has a safe history of paying and growing the dividend yield.
The metric measuring long-term share price appreciation potential in relation to a AAA rated corporate bond (known as RV) is showing an excellent value. POLR.L has a forecast Earnings Growth Rate (GRT) of 24% which VectorVest considers to be excellent.
Technically POLR.L is trending strongly as measured by the proprietary VectorVest Comfort Index. The Comfort Index is an indicator which reflects a stocks ability to resist severe and or lengthy price declines. The Comfort Index is unique in investment research and a secret weapon.
Over the past week POLR.L has pulled back with the overall market to a point on the chart where old resistance has a high probability of becoming support, for a second time. This support is shown on the chart by the horizontal blue line. Technically POLR.L is setting up a “spring” type trading pattern which if confirmed is exceptionally bullish. At present the share is on a VectorVest hold recommendation.
In summary, POLR.L looks set to grow earnings strongly over the next year. The share is markedly undervalued and technically is on a Hold recommendation on VectorVest.
At present, the advice on VectorVest as I write on the evening of the 15th of September is not to buy stocks as the short-term trend of the overall market is trending downwards. The underlying or long-term trend of the overall market is bullish. This analysis is supplied to VectorVest subscribers each day in an easy-to-use format as shown below.
Traders should carefully stalk the share and wait for
- The VectorVest Market Timing Gauge to indicate that’s its safe to buy stocks.
- POLR.L prints a VectorVest Buy signal.
Doing nothing is much more difficult than it would seem, I know.