The Week UK 11.08.2019

Shares CITY 51

10 August 2019 THE WEEK

AG Barr
Shares
The Irn-Bru maker has blamed
its “punishing” profit warning
on astrategy shift and some
disappointing weather. But
it is dependable, defensive
and growing, withastrong
balance sheet andagood track
record. Buy. 685p.

Centamin
Shares
The recovering gold miner has
$300m in cash and business
has been boosted by an
improving gold price. All eyes
are now on the potential of the
Egyptian Sukari mine after a
better than expected interim
dividend. Buy. 129.6p.

Games Workshop Group

Investors Chronicle

The group’s ever-popular

miniature fantasy figures have

securedathird year of record

results. The dearth of sizeable

competitors–and a“laser”

focus on audience engagement

and ever-improving returns

–are reassuring. Buy. £45.36.

Fuller Smith&Turner

Investors Chronicle

After selling its brewery

business, Fuller’s £205m cash

infusion is going towards

upgrading and expanding

the pub and hotel business.

Revenues are up 4.9% and

it’s set for cash returns.

Buy. £10.75.

Johnson Service Group

Investors Chronicle

Johnson provides workwear

and linen to hotels, restaurants

and caterers. Resilient and

cash-generative, with

impressive organic growth

and upcoming consolidation

opportunities. Buy. 169.6p.

Softcat

Shares

Softcat is increasing market

share asa“value-added

reseller” majoring on third-

party software and cyber-

security products. It has a

good track record and growth

potential, and profits are

beating expectations. Yields

3.8%. Buy. 959.5p.

Who’s tipping what

The week’s best shares

...and some to hold, avoid or sell

Berkeley Energia
The Sunday Times
The uranium explorer’s hopes
of mining in Spain have been
dashed thanks to anti-nuclear
politics. Prices are weak and, as
yet, there’s still no decision on
whether the necessary licences
will be granted. Sell. 15.75p.

Centrica
The Mail on Sunday
The British Gas-owner has
suffered sliding sales, tumbling
profits andadividend slashed
to 5p–amajor decline for one
of the FTSE 100 stalwarts.
Shares are at their lowest point
since 1997, CEO Iain Conn is
leaving and prospects are
unclear. Sell. 73.38p.

Lookers

Investors Chronicle

The struggling car retailer

has been hit by low consumer

confidence, cost inflation and

the threat of new emission

laws. An FCA probe doesn’t

help, andano-deal Brexit

would exacerbate its problems.

Sell. 45.35p.

Next

The Daily Telegraph

The retailer has revised profit

forecasts upwards as sales in

own-brand merchandise rise.

Stock management is

improving, and online growth

of 12% has offset the 4.2%

decline in sales from shops.

Hold. £60.54.

Sage Group

The Times

The accountancy and payroll

software group is focusing on

migrating its customers to the

cloud and moving toamore

lucrative subscription model.

Shares have fallen, but the

strategy is “clearly working”.

Hold. 736.5p.

Sports Direct International

The Daily Telegraph

The sportswear retailer is

“in chaos”:aseries of

acquisitions have costafortune

and proved a“damaging

distraction”. House of Fraser

has “terminal” problems, and

the core business has “lost its

way”. Sell. 214.4p.

Directors’ dealings

Berkeley Group

Chairman Tony Pidgley has

soldafifth of his shares in the

London-focused house builder

he co-founded, pocketing

£37m. This is one of several

major disposals, resulting in a

halving of his stake. Pidgley

retainsa£139m tranche.

Form guide

Shares tipped 12 weeks ago

Best tip

Zscaler

The Daily Telegraph

up 22.16% to $79.94

Worst tip

Ibstock

The Times

down 15.47% to 216.4p

Market view

“It looks like a

tsunami is coming.”

Hao Zhou of Commerzbank

on the market

implications of China’s

currency devaluation.

Quoted in the FT

SOURCE: INVESTORS CHRONICLE

Market summary

6-month movement in the FTSE 100 index

6Aug 2019 Week before Change (%)

FTSE 100 7171.69 7646.77 –6.21%

FTSE All-share UK 3920.70 4164.69 –5.86%

Dow Jones 25829.08 27152.19 –4.87%

NASDAQ 7776.83 8261.50 –5.87%

Nikkei 225 20585.31 21709.31 –5.18%

Hang Seng 25976.24 28146.50 –7.71%

Gold 1465.25 1419.05 3.26%

Brent Crude Oil 59.61 64.10 –7.00%

DIVIDEND YIELD(FTSE 100) 4.50% 4.22%

UK 10-year gilts yield 0.51 0.63

US 10-year Treasuries 1.74 2.07

UK ECONOMIC DATA

Latest CPI (yoy) 2.0% (Jun) 2.0% (May)

3.0% (May

+5.7% (Jun)

Latest RPI (yoy) 2.9% (Jun)

Halifax house price (yoy) +4.1% (Jul)

£1 STERLING $1.216 E1.086 ¥129.160

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

WEEK’S CHANGE, FTSE 100 STOCKS

RISES Price %change

Intl. Cons. Airl. Gp. 446.20 +7.57

Rentokil Initial 434.90 +5.51

Next 5858.00 +4.31

London Stock Ex. Gp. 6598.00 +1.45

Brit.American Tobacco 2980.00 +0.07

FALLS

Taylor Wimpey 146.50 –17.02

Glencore 231.35 –15.26

Rolls-Royce Holdings 759.00 –14.83

Mondi 1553.50 –14.67

Anglo American 1808.40 –13.47

BEST AND WORST UK STOCKS OVERALL

Adept4 1.25 +257.14

Verseon Corporation 13.75 –66.87

Source: Datastream (not adjusted for dividends). Prices on6Aug (pm)

Mar Apr May Jun Jul Aug

7,100

7,300

7,500

7,700

4,000

3,400

Mar Apr May Jun Jul Aug

3,700

3,500

3,600

3,800

3,900

Chairman

sells 1m