Bitcoin on the run again, new drama between Frasers and Boohoo, JD Sports disappoints, Liontrust on the comeback trail and Jet2 soars

“Amid a relatively calm day for equities, investors’ attention was elsewhere on the markets as bitcoin edged ever closer to the magic $100,000 level,” says Russ Mould, Investment Director at AJ Bell.

“Hitting an intraday high of $97,671, the cryptocurrency continues to climb as investors and traders anticipate big things in 2025.

“The FTSE 100 held firm at 8,089 with strength in technology, energy and miners offset by weakness in utilities, consumer cyclicals and real estate. Halma surged 10% on better-than-expected results while JD Sports crashed as its trading update disappointed.”

Frasers

“There is more drama between Boohoo and Frasers than a week’s worth of Eastenders.

“Having failed in its previous attempt to make Mike Ashley chief executive of the clothing company, Frasers has now used its shareholder muscle to call for a vote on kicking out Boohoo’s co-founder, Mahmud Kamani, and appoint Ashley and Mike Lennon, an insolvency expert, as directors.

“Frasers’ letter to Boohoo doesn’t mince its words. Accusing Kamani as leading a ‘back pocket’ board that has ‘total disregard’ for shareholders implies that Frasers has reached the end of its tether. It’s gone hostile and is determined to take charge and breathe new life into Boohoo.

“However, a mere 1% increase in Boohoo’s share price on the news implies that investors aren’t convinced the Frasers empire will win this battle.

“Kamani is unlikely to bow to Frasers’ demands and leave without a fight. After all, he helped to build the business and make it one of the country’s biggest forces in fast fashion. While Boohoo has lost its way in recent years, it’s unfathomable that Kamani will let someone else step in and reassemble the business in a different way. It would be an admission of failure.

“Interestingly, Frasers’ open letter coincided with the news that Kamani will move from executive chair to executive vice chair. Tim Morris becomes independent chair. That may not be enough to pacify Frasers in its quest for change.”

JD Sports

“JD Sports had been on course to join UK retail’s exclusive £1 billion profit club but its latest update suggests it might just be left loitering on its fringes.

“The company says profit will be at the lower end of the guided range thanks, in part, to trading volatility around the US election – although just how much uncertainty over the presidential race would affect demand for trainers and sportswear seems open to question.

“It certainly wouldn’t explain why like-for-like sales fell more in the UK than North America, with few British shoppers likely to be hanging their spending decisions on what happened on 5 November. However, the focus on the US shows just how important this part of the world is to JD.

“Weather is also pointed to as a culprit, and while blaming the weather is never a great look, milder conditions in October would have affected demand for higher ticket items like puffer jackets.

“The company has exercised some discipline – evident in a modest increase in the gross margin – and this decision may pay off in the longer term.

“European sales were also a bright spot and the company should soon complete its acquisition of French franchise Courir, having cleared regulatory hurdles. This will not only boost JD’s footprint on the continent but may also increase its foothold among women given Courir’s skew.”

Liontrust

“Asset manager Liontrust is on the comeback trail with a renewed sense of optimism in the commentary accompanying its half-year results.

“That sent the share price up 8%, making Reade Griffith a happy man. The hedge fund manager more than doubled his stake in Liontrust last week from 5% to 11.5% via his TFG investment vehicle.

“Griffith is no stranger to investing in Liontrust, having previously owned by more than 10% of the business nearly 10 years ago.

“That somewhat throws cold water on the idea he is building up a stake with a view to making a takeover offer. This looks to be a straightforward trade on an expected bounce-back in Liontrust’s share price.”

Jet2

“A week in the sun remains non-negotiable for many UK households according to Jet2 and that argument was lent credence by its record first-half results and upgraded full-year guidance.

“One emerging trend which is a challenge for the business is a tendency for passengers to book much closer to their departure date but, for now, Jet2 seems capable of dealing with it.

“The company is enjoying the rewards of treating its customers well, including during the pandemic when the same wasn’t necessarily true of some of its peer group, and this has helped engender loyalty among holidaymakers.

“Price still remains a determining factor in people’s decision making and Jet2 seems to have got the balance right between protecting its own profitability and still offering reasonable value for its customers.

“Jet2’s confidence in its current trajectory is reflected in a meaningful increase in the dividend. The company’s hedging of fuel and currency exposure into 2025 gives both it and its shareholders decent visibility as it flies into next year.

“The company’s strong balance sheet and consistent cash generation also means it has a buffer to guard against future turbulence.”

These articles are for information purposes only and are not a personal recommendation or advice.