A few weeks ago I pointed to a stock the analysts thought had plenty of upside. It was a former darling of the market but had seemingly been caught out by the Brexit drama. Recently the company reported better than expected and it enjoyed a marking up by those who do the form on listed businesses.
The company in question is Link Administration Holdings (LNK) and I’m going to make this the first company to sit my test: Would Warren Buffett buy this stock? I intend to occasionally make numerous companies sit this test — those companies that analysts believe are under-priced.
The following charts tell the story for LNK. The first chart captures the fall from grace where Brexit was seen as the prime culprit for the company’s price decline.