The_Week_UK_-_Issue_1251__02_November_2019_UserUpload.Net

Shares CITY 55

2November 2019 THE WEEK

ContourGlobal
TheTimes
Contourowns 108 power
plantsin 18 countries,with
45%ofhalf-yearearnings
comingfromitsrenewable
energyportfolio.Acquisitive,
withsubstantialdebt,but
highlycash-generative.Shares
yieldaround6%and“look
abargain”.Buy.2 07 p.

FidelityJapanTrust
TheMailonSunday
Sharesarelagging,butthe
trustismakinggoodprogress.
Avariedslateofinvestments
includesYamaha,funeral
servicesproviderKamakura
Shinsho,bicyclepartsmakers
andtechstocks.Buy. 1 55 p.

Northgate

TheTimes

Thisvanrentalgroupis“in

recovery”,andpotentialsales

haven’tyetbeenbuiltintothe

shares.Marginimprovement

movesandauctioningoffits

Spanishassetscouldleadtoa

“significantwindfall”.Yields

5.38%.Buy. 3 37 p.

PennonGroup

InvestorsChronicle

TheownerofSouthWest

Waterfacestougherregulation.

Butitswastemanagement

business,Viridor–whichis

investinginplasticprocessing

andgeneratingelectricityfrom

waste–isan“engineof

growth”.Buy.904p.

Prudential

TheShareCentre

AfterthedemergerofM&G,

thePruisnowanAsia-focused

lifeandassetmanagement

group.Enjoyinggoodlong-

termgrowthopportunities

fromanageingand

increasinglywealthy

population.Buy.£13.85.

Rotork

TheSundayTelegraph

Thecontrolsystemsspecialist’s

“growthacceleration

programme”isfocusingon

simplifyingthebusiness.The

pipelineinAsiaishealthy,

there’sagrowingcashpile

andpotentialtooutperform.

Buy.297.9p.

Who’s tipping what

Theweek’sbest shares

...and some to hold, avoid or sell

Energean Oil&Gas
The Times
Energeanis a“transition”
energyplayer,focused on
exploring andproducing gas.
The purchase ofItaly’sEdison
portfolio demonstrates its “eye
for smart andcost-effective
acquisitions”.Hold.952p.

Evraz
InvestorsChronicle
Poor first-halfresults (due
to decliningRussian andUS
demand) andahuge stock
sell-offbythree directors
have sparkedacollapsein
thesteelmaker’sshares. The
forwardyield is 17.9%,but
there’snocatalyst forrecovery.
Sell.379p.

Host elworldGroup

The Times

This onlinebookingplatform,

focusedonhostels, haslost

marketshare, thanks to years

of underinvestment. There’s

asensible recoveryplan, but

it will take time.Meanwhile

sharesyield 9.3%. Hold.110p.

M.P. EvansGroup

Investors Chronicle

The trendfor sustainable food

sources will not helppalmoil

production–renowned forits

poor environmental impact

–inthe longterm. The price

of palmoil in the shortterm

is volatile,andit iseasily

replaced by other oils.

Sell.624p.

Royal Mail

Shares

RoyalMail sharesareup

14%sinceJune, thanks to

productivity improvements.

Butathreatened strikeover

the BlackFridayweekend in

November will disrupt business

anddamage credibility.Take

profits. Sell. 226p.

Tesla

TheTimes

Thankstotight cost controls

andimproved efficiencies, the

loss-making car maker has

unexpectedlyturned aprofit

in thethird quarter, boosting

shares. Butmore evidenceis

needed:Tesla hasa“patchy”

record. Hold.$297.23.

Directors’ dealings

S4Capital

Britain’smostprominentad

man,SirMartinSorrell,has

investedafurther£12.71min

hisnewventure,S4Capital–

launchedafterhisoustingfrom

WPP.S4sold£ 100 mworth

ofsharestofundanother

waveoftakeoverdeals.

Form guide

Shares tipped 12 weeks ago

Best tip

Johnson Service Group

Investors Chronicle

up 2.12% to 173.20p

Worst tip

AG Barr

Shares

down 19.22% to 553.35p

Market view

“Significant positioning in

sterling assets in either

direction looks unwise.”

Karen Ward of JPMorgan

warns that the election

outcome is unpredictable

and could still mean

ano-deal Brexit.

Quoted in the FT

SOURCE: SHARECAST

Market summary

6-monthmovement in the FTSE100index

29 Oct 2019 Week before Change (%)

FTSE 100 7306.26 7212.49 1.30%

FTSE All-share UK 4024.04 3982.66 1.04%

Dow Jones 27064.80 26859.79 0.76%

NASDAQ 8281.89 8139.84 1.75%

Nikkei 225 22974.13 22548.90 1.89%

Hang Seng 26786.76 26786.20 0.00%

Gold 1492.40 1491.65 0.05%

Brent Crude Oil 61.77 59.51 3.80%

DIVIDEND YIELD(FTSE 100) 4.50% 4.54%

UK 10-year gilts yield 0.62 0.63

US 10-year Treasuries 1.84 1.79

UK ECONOMIC DATA

Latest CPI (yoy) 1.7% (Sep) 1.7% (Aug)

2.6% (Aug)

+1.8% (Aug)

Latest RPI (yoy) 2.4% (Sep)

Halifax house price (yoy) +1.1% (Sep)

£1 STERLING $1.288 E1.159 ¥140.201

Key numbers for investors Best and worst performing shares Following the Footsie

WEEK’S CHANGE, FTSE 100 STOCKS

RISES Price %change

Astrazeneca 7387.00 +8.58

Ashtead Group 2338.00 +8.49

WPP 989.00 +7.99

Scottish Mortgage 509.00 +7.84

3i Group 1153.00 +7.81

FALLS

NMC Health 2371.00 –9.88

Royal Bank of Sctl. Gp. 219.20 –8.93

Imperial Brands 1758.60 –4.98

United Utilities Group 856.20 –3.95

Barratt Developments 642.60 –3.92

BEST AND WORST UK STOCKS OVERALL

Eurasia Mining 2.95 +527.66

C4X Discovery Holding 18.70 –50.85

Source: Datastream (not adjusted for dividends). Prices on 29 Oct (pm)

May Jun Jul Aug Sep Oct

7,700

7,400

7,600

7,200

7,300

7,500

7,100

May Jun Jul Aug Sep Oct

150

160

140

Chairman

buys 8.95m