AVON: A Valuation of Avon Rubber PLC

This past week I have been running a few screens to look for (potentially) undervalued companies.  Whilst there were few companies that met the holy trinity of low P/E, low P/S and low P/B metrics, it seems sensible to begin to relax these parameters given the reasonable valuation of UK indices.  One company that I believe warranted more investigation was Avon Rubber PLC (LSE: AVON).


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Thoughts on Risk and Return

A few years ago, my father walked into a popular high street bank with the intention of handing over a portion of his savings for them to invest on his behalf.  As usual, the meeting he had with their adviser got down to the subject of risk.  Was my dad a risk-seeker, or was he looking to take as little risk as possible on his investments?  I suspect a fair proportion of people in these circumstances opt for somewhere in the middle (as did my dad).  Looking at most (if not all) large high-street banks, they offer risk/return profiles bundled into neat little groups.  Lloyds and Halifax for example have three risk ‘groups’ to pick from.  Low, medium and high risk/return.

But is it really that simple?  Surely everybody would like to maximise their return, therefore should they not all opt for the highest risk option?


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