If you think companies would like to know when they are on the midweek watchlist then feel free to contact their investor relations or even the CEO if you have their contact details and tell them to keep an eye on it.
If you have been keeping up with proceedings since my first Adventures with IM blog post on 22 June 2015, then you will be familiar with my desire to prepare myself for future potential weekly upcycles so here is where I share with the world what I see regarding the state of current and future upcycle placements in time for a selection of companies.
Being a CEO can’t be too difficult – at the very least all I would require is a long term plan of growth that could be divided into shorter projects that would build year on year. If I know I can do this and have enough funding to see me through for the long term, then it would just be a case of timing my projects and news flow according to the nature of the cycle.
The current travails of Greece, and in particular the parlous state of its public finances, dominated market sentiment today. The FTSE100 fell by 2% to 6,620, while European bourses (both equity and bond markets) fell further and, on the foreign exchange market, the Euro currency lost ground. The question both traders and investors will be asking themselves is, "Does this setback provide a buying opportunity, or not?"
"Today's announcement of procuring planning permission for 351 homes on the former Meridian TV studios in Southampton represents another positive 'brick in the wall' (please excuse the pun) for Inland Homes. Project value of £70m, this underpins the asset value highlighted in 17 June blog. By contrast with other listed house builders, the book value of INL stock appears very attractive with true worth (based on current value of its land in the south of England, much of it consented) in the region of 85p per share. The share price to book valuation (P/B) of the peer group is typically in excess of 2x (based on net tangible assets advised on last reported balance sheet). While a historic earnings based valuation would show the larger premium listed builders in a better light, profits from INL appear set to surprise on the upside and projecting forward to estimate profits in 2016 would suggest that both INL and the builders at large are on 11.8 times consensus forecasts.
Sensible private investors in equity will no doubt have a diversified portfolio of collective investment vehicles and company shares, but within the latter they may well be inclined towards a few favourites. All individual stocks, however apparently successful, must have a price at which the prudent intelligent owner would consider them as being overvalued and would decide to sell.
The mega cap end of the UK equity market, as measured by the FTSE100 index, has given up much of the gains made in the year to date as concerns surrounding Greece and the prospect of higher interest rates in the US have dampened our local post-election euphoria. By contrast, the mid cap FTSE250 index has retained most of its 2015 advance, reflecting in part superior earnings growth and, more pertinently perhaps, an inherent higher exposure to the domestic economy.
If you love numbers or statistics - and most of us secretly do – then, irrespective of an interest in things political, Thursday night (or rather the early hours of Friday morning) is likely to represent compelling media viewing as the results of the General Election, along with the incumbents of many local council seats, are announced.
Following on from the writer’s previous commentary on Optimal Payments (OPAY), this article takes a look at a much bigger piece of corporate action as global oil giant Royal Dutch Shell made a £47 billion offer for the BG Group on Wednesday. Again an agreed (by management of both companies) bid, with consideration being via a mix of cash and new equity, but the magnitude of this deal is dramatically different – for example, requiring regulatory approval in a number of jurisdictions including Australia, Brazil and China. Besides the scale, the most obvious difference surrounds the current respective positions in the business cycle of the energy industry as compared to the high pace apparent in technology (surrounding the electronic wallet & payment industry, in OPAY’s case).
Datafeed and UK data supplied by NBTrader and Digital Look.
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