Ed Page Croft, chief executive of Stockopedia.com, said James Latham, distributor of timber products, was of particular interest having published a bullish trading statement this week.
Stockopedia analyst Paul Scott said the company operated in a competitive market. "Looking back over the last 10 years, it has made an operating margin of 5-6pc in the good years, and 3% in bad years. So there's probably not scope to increase the operating margin by much, as competitors will undercut them on price if they try to charge more.
"That said, with a long overdue surge in housebuilding going on now, perhaps there will be more opportunities to grow the top line, which today's statement suggests is happening. Overall I feel that the current share price looks about right, with probably some more upside possible over time."
As with the FTSE All-Share Value list, there is a contrarian theme running through the list, says Mr Page Croft with bombed out pawnbroker H&TGroup which is bouncing back, Amino Technologies, the set-top box builder, and online gaming company GVC.
Interestingly Quindell, insurance claims processor, makes the list. It reported strong results this week - pre-tax profits were up 292pc - but it comes after criticism from Gotham City Research.
The company has had a dramatic year after little-known Gotham questioned its credibility and prompted a sharp fall in its share price. It called Quindell "a country club built on quicksand" after its share price soared in light of deals with Direct Line and RAC.
As our main article highlights, there is often a good reason shares are cheap on these value measures. There may be gloom on the horizon in their particular market or competition may be growing. Investors are urged to tread with caution.
That said, Mr Page Croft believes shrewd investors can still pick up winners despite years of the stock market rising. “The five-year bull run has been long overdue a correction, but the average stock in the UK market still remains moderately valued on a forecast price-to-earings ratio of 14 and a yield of 2.9%. While the bargains have gone, in this strengthening economy investors can still uncover plenty of value in stock markets. It definitely will pay off to keep cash on hand to pounce on inevitable market opportunities as they arise.”
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