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MJ Gleeson is one of our top picks among housebuilders

Thursday 28 Sep 2017

Results from small cap housebuilder MJ Gleeson ( GLE ) demonstrate the same positive trend as its larger rivals and its unique model provides reassurance on future growth prospects. There is growing concern that housebuilders may be reaching their high-water mark as market conditions become...

What next for investors after German elections?

Thursday 28 Sep 2017

German chancellor Angela Merkel is still in charge following federal elections (24 Sep) but now faces a difficult task in building a government. So what does this mean for investors with exposure to Europe? The surge in support for the anti-immigrant AfD party and an underwhelming performance for...

Central Asia Metals’ zinc move makes the stock higher risk

Thursday 28 Sep 2017

Anyone used to owning shares in Central Asia Metals ( CAML:AIM ) as a low-risk, high-yield stock should brace themselves for a change in risk profile and potentially more volatile share price movement. The miner has struck a deal to buy Lynx Resources, the owner of the Sasa underground zinc and...

UK hotel growth to decline in 2018

Thursday 28 Sep 2017

Professional services firm PriceWaterhouseCoopers (PwC) believes that earnings growth in UK hotels will be lower in 2018. The company predicts a stronger than anticipated second half of the year thanks to a recovery in Europe and a weaker pound, but argues this is not sustainable. Canaccord Genuity...

Ocado update leaves bitter taste

Thursday 21 Sep 2017

Online grocer Ocado’s ( OCDO ) third quarter update (19 Sep) triggered a share price decline as boss Tim Steiner reported falling average order sizes and said costs would rise. Customers spending less per order is negative for Ocado, particularly as the latest Kantar Worldpanel grocery share...

Can retail recover?

Thursday 21 Sep 2017

Investor sentiment towards the retail sector is currently poor. Consumer confidence has been dented by negative Brexit rhetoric, low wage growth and higher inflation. Profit warnings from the likes of DFS Furniture ( DFS ) , Dixons Carphone ( DC. ) and Safestyle UK ( SFE:AIM ) have driven investors...

BAE gets lift from Qatar deal

Thursday 21 Sep 2017

Defence firm BAE SYSTEMS ( BA. ) enjoyed around a 4% share price hike to 622p earlier this week as Qatar signed a letter of intent to buy 24 Typhoon jets from the UK outfit. The deal, announced last weekend, helped make BAE the biggest riser on the FTSE 100 on Monday 18 September. Describing the...

What to consider as sterling recovers

Thursday 21 Sep 2017

A recovery in the strength of the pound against the US dollar could theoretically weigh on the FTSE 100, judging by how the currency relationship influenced the market last year. The blue chip index’s 1.8% gain so far this year is considerably lagging the domestically-focused FTSE 250 index which...

Scope for improvement at Rotork, says UBS

Thursday 21 Sep 2017

Investment bank UBS says now is the time to buy engineer Rotork ( ROR ) . Analyst Mark Fielding says: ‘A return to 25%-plus operating margins by 2021 supports a 12% per year earnings per share compound annual growth rate and can catalyse a return to a sector premium rating’. The company has...

Slump in NHS referrals clouds Spire’s outlook

Thursday 21 Sep 2017

Alarm bells are ringing at independent hospital group Spire Healthcare ( SPI ) following a decline in NHS referrals which has hit anticipated underlying sales and earnings growth. Nearly a fifth of the company’s market value has been wiped off since its profit warning on 14 September. The company...

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