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Big News
UK fracking makes comeback
Thursday 13 Oct 2016The UK Government has overridden local county council objections to sanction fracking in Lancashire. In doing so, investors are once again interested in stocks with exposure to the nascent UK shale gas industry. Among UK-quoted stocks, IGas Energy ( IGAS:AIM ) offers the purest exposure but is...
Burberry set up for fresh leadership
Thursday 13 Oct 2016Luxury goods leader Burberry ( BRBY ) should maintain its share price momentum as it awaits the arrival of new chief executive Marco Gobbetti in 2017, in our opinion. Boasting a balance sheet robust enough to withstand prevailing industry storms, the retailer retains a fabulous brand which confers...
Rally in cyclicals ‘nearing end’
Thursday 13 Oct 2016Year-to-date gains on cyclical stocks like miners means higher quality stocks with good balance sheets may now be more attractive, argue analysts at Bank of America-Merrill Lynch. Fund managers are loading up on cyclical stocks but valuations are starting to look stretched. ‘History argues that...
Winners and losers as Brexit stance hardens
Thursday 13 Oct 2016Renewed volatility in sterling is helping to reignite interest in stocks which earn a big proportion of their revenue overseas, helping take the FTSE 100 and FTSE 250 to record highs. A weak pound benefits overseas earners – which is the case for around 80% of the FTSE 100 and half the FTSE 250. It...
Stobart to update on £28m profit target
Thursday 13 Oct 2016Logistics outfit Stobart ( STOB ) will update the market on progress towards a £28m profit target across two key divisions when it reports half year results on 27 October 2016. Stobart is aiming to deliver £20 million of earnings before interest and non-cash costs (EBITDA) in its Energy biomass...
Does Capita need a rights issue?
Thursday 06 Oct 2016Outsourcer Capita ( CPI ) , which suffered a shock profit warning (29 Sep), may need to ask shareholders for extra cash if earnings fall by more than expected. The lion’s share of Capita’s 45% year-to-date decline came after a trading update last week which said it faced complications with a...
Brexit gets real
Thursday 06 Oct 2016Prime minister (PM) Theresa May’s negotiating position on Europe increases the risk of a ‘hard Brexit’, according to analysts at Bank of America-Merrill Lynch (BAML). May, who pledged to begin the UK’s exit from the EU by triggering Article 50 in the first three months of 2017, wants more controls...
FTSE 250 rallies to record high
Thursday 06 Oct 2016UK mid cap index the FTSE 250 hit a new record this week – and analysts at investment bank Liberum say the rally could have further to run in a number of stocks. The FTSE 250 went through its May 2015 peak on 4 October 2016, hitting 18,590 at the time of writing. But analysts at Liberum say...
Healthcare heavyweight IPO
Thursday 06 Oct 2016Burns-to-ulcers treatment group ConvaTec is to float on London’s Main Market in the next month. It hopes to raise $1.8bn to help reduce debt. The Reading-based group could become a candidate for the FTSE 250 or even FTSE 100. Bristol-Myers Squibb (BMY:NYSE) sold the business to private equity for $...
Major news in property market
Thursday 06 Oct 2016Investors in property companies and housebuilders need to digest a large number of important announcements made over the past few weeks. The overall impact looks a net positive. Our best idea in this space is specialist housebuilder MJ Gleeson ( GLE ) . Its twin track approach of developing low...