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Guess which company was top of the pile when Ed Croft's Stockopedia picked "10 Great stocks" in February 2017?

By Tom Winnifrith

26 April 2018 01:36

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No it was not Quindell (QPP). That was two years earlier AFTER it had been identified as a fraud. Nor was it Globo although Ed Croft's Stockopedia stock picking system ranked that at 92 out of 100. Oops. No Ed's St Valentine's day 2017 present to his poor followers was...

10 great stocks that meet Jim Slater’s Zulu strategy rules

Ed's stock picking sytem churned out 10 stocks it liked which aslo fitted Jim Slater's stock picking criteria although I am aware that Jim's son Mark managed to avoid the temptation to back the stock that was top of the list. So which was Ed's winner this time?

Step forward.... Telit Communications (TCM). Founded by a fraudster and fugitive from justice, booking bogus profits, set to breach bank covenants, the FD now under investigation for insider dealing. Booked great earnings but NEVER generated cash, just like those other Croft naps Quindell and Globo.

Even then there was a surging short position in Telit. It is not just that Stockopedia flags up Telit as a stock to own but that it makes it its biggest nap although anyone looking at the cashflow statement would have run a mile. Any stock picking system that keeps on selecting mega frauds as its biggest naps to own is surely, at best, somewhat suspect?

Personally I'd rather invest alongside folks like Nigel Wray and Michael Spencer in companies rated by Croft's system as "sucker stocks" than in the frauds his system appears to promote so aggressively. But what do I know?

The laughable article is HERE

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