James Dennin, Kapitall: Hedge funds are bullish on the pound, so we found 3 profitable British stocks based on accounts receivable.
It's been a pretty good year for Great Britain, as signs of recovery have percolated throughout the country and manufacturing has begun to rebound. Unemployment is down, and many experts have already doubled their outlook for UK GDP growth in 2014 compared to where it was over the summer.
Source: HedgeyeAs our partners at Hedgeye explain, a lot of this is the result of strong currency and strong economic consumption trends that are developing in the UK. Bulls on Britain attribute this partly to the appointment of Mark Carney last June to head the Bank of England. Read more on Europe from Kapitall: 7 Undervalued European Stocks to Diversify Your Portfolio As growth is slowly restored, sentiment throughout the British economy is improving noticeably. In a very telling statistic, four in five of the companies on the FTSE 350, an index of the biggest publicly traded companies in the UK, believe that growth will be strong in the coming months. More than half of those companies plan to increase capital expenditures over the same period as well. There are many things underlying the bullishness about the UK, including Prime Minister David Cameron's aggressively procured lucrative trade partnerships with China. Investing ideas We ran a screen on British-based stocks that trade on US exchanges, looking for ways to capitalize off of this growing positive sentiment. To do that we looked for encouraging trends in accounts receivable. Accounts receivable is basically money that is yours, but you don't have yet – outstanding payments, outstanding loans, "checks in the mail," etc. Since there is no guarantee that you'll receive this money, it's a good thing if this number decreases as a percentage of net assets, because it shows that the company is building value and managing its finances effectively.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV