My final choice for now is another awash with cash. I am not so confident that it can double as it has come a long way already and the move from 79p to 158p might be stretching it just a little. However, Renew Holdings (RNWH)does have around 20p per share of cash and sits on a lowly rating of under 8 according to Brewin Dolphin. Strip out the cash and it is residing on a PE of only 6 - I can happily see RNWH commanding a PE of 12 quite comfortably. With construction in the nuclear field something for the future, and even work from the London Olympics possibly kicking in, this could still have a long way to go. ROCE is superb at 75% and although margins are low I can see these being raised as time goes on.
I know many were critical of the way the accounts were presented in the latest report and felt the waters were muddied but I shall keep the faith and stick my neck out on this one.
