The Week UK - 03.08.2019

Shares CITY 51

3August 2019 THE WEEK

Anglo American
The Times
This diversified miner’s
recovery has been driven by
radical streamlining and an
overhaul of its operating
model. Earnings are up 19%,
and strong growth prospects
should drive higher production
and profitability. Buy. £21.87.

ConvaTec Group
The Sunday Times
The medical equipment-maker
has hada“bruising run”, with
two profit warnings and supply
chain problems. Butanew
CEO, new products and
cost-cutting make it well-
placed to benefit from a
growing market. Buy. 150.1p.

Moneysupermarket.com

Group

Investors Chronicle

The price comparison platform

has benefited from increased

energy-switching and soaring

home-services revenues. It

boasts “solid” results and a

decent dividend hike. Forward

yield 3%. Buy. 400p.

Mpac Group

The Mail on Sunday

Profits at this fast-growing

engineer of packaging

machinery are “significantly”

outpacing expectations, as it

expands into the service and

maintenance sectors. Clients

include global food, drugs and

drinks firms. Buy. 203p.

National Express Group

The Times

The leading bus operator

harvests customer data to

determine routes and ticket

prices. It controls 60% of UK

coach and school bus markets

and isabig player in Spain too.

Expanding into corporate

shuttles. Buy. 438.4p.

Severfield

Investors Chronicle

Structural steelwork specialist

Severfield, best known for

London’s Shard, has seen a

near 30% boost in UK and

European orders. Profit

margins are improving and

there’s “huge growth

potential” in India. Buy. 65p.

Who’s tipping what

The week’s best shares

...and some to hold, avoid or sell

Balfour Beatty
Investors Chronicle
Despitea£12.6bn order book,
the construction firm’s margins
are wafer-thin. Cash generation
is poor, the HS2 contract is
likely to be plagued by delays,
and UK construction output is
in steep decline due to the
Brexit deadlock. Sell. 224.6p.

De La Rue
Investors Chronicle
Just when things looked like
they couldn’t get any worse for
the banknote producer, the
SFO has launched an
investigation into “suspected
corruption” in its South Sudan
business. Shares have tumbled.
Sell. 251p.

G4S

The Sunday Telegraph

The security group has failed

to spin off its cash solutions

division in the teeth of

declining cash usage and the

spread of digital payments.

Revenues are disappointing,

and the pension fund may need

topping up. Sell. 195.2p.

Snap Inc.

The Times

The owner of messaging app

Snapchat has hada“bumpy

ride”. Fundamentals have

improved, but shares are

pricey, and there are worries

about whether progress can be

sustained givenaresurgent

Facebook. Hold. $17.61.

Strix Group

The Mail on Sunday

This well-run market-leader,

which specialises in kettle

safety controls, has been hit by

the “Woodford effect”. But

growth plans are on track as it

expands into water filtration.

Sales and profits are rising and

it yields 4.5%. Hold. 171.9p.

Unite Group

Investors Chronicle

Shares in the student accom-

modation provider have hit an

all-time high following “top

tier” results, and now trade at

ahefty premium. But it faces

Brexit uncertainty and calls to

deliver more value for students.

Take profits. Sell. £10.50.

Directors’ dealings

Dart Group

Sharesinthepackageholiday

businesspulledbackby9.3%

followingexecutivechairman

PhilipMeeson’srecent

disposal.The£6.06mheraised

“palesincomparison”withhis

residualholdingof37%of

Dart’sshares.

Form guide

Shares tipped 12 weeks ago

Best tip

Smith&Nephew

The Share Centre

up21.32%to£19.04

Worst tip

Diversified Gas and Oil

The Sunday Times

down14.75%to104p

Market view

“If it looks like this

juggernaut cannot be

stopped, we expect sterling

to keep falling.”

Seema Shah of Principal

Global Investors

contemplates, on the

looming threat of no deal.

Quoted on BBC Business

SOURCE:INVESTORSCHRONICLE

Market summary

6-month movement in the FTSE 100 index

30 July 2019 Week before Change (%)

FTSE 100 7646.77 7556.86 1.19%

FTSE All-share UK 4164.69 4124.22 0.98%

Dow Jones 27152.19 27215.92 –0.23%

NASDAQ 8261.50 8202.00 0.73%

Nikkei 225 21709.31 21620.88 0.41%

Hang Seng 28146.50 28466.48 –1.12%

Gold 1419.05 1427.75 –0.61%

Brent Crude Oil 64.10 62.94 1.84%

DIVIDEND YIELD(FTSE 100) 4.22% 4.27%

UK 10-year gilts yield 0.63 0.69

US 10-year Treasuries 2.07 2.05

UK ECONOMIC DATA

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

3.0% (May

+5.2% (May)

Latest RPI (yoy) 2.9% (Jun)

Halifax house price (yoy) +5.7% (Jun)

£1 STERLING $1.216 E1.091 ¥131.983

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

WEEK’S CHANGE, FTSE 100 STOCKS

RISES Price %change

Just Eat 750.00 +20.54

Vodafone Group 151.24 +15.63

London Stock Ex. Gp. 6504.00 +15.36

Astrazeneca 7128.00 +10.27

JD Sports Fashion 648.40 +6.16

FALLS

Centrica 73.58 –17.36

Fresnillo 653.60 –16.91

Sage Group 733.80 –8.87

Intl. Cons. Airl. Gp. 414.80 –8.59

Anglo American 2090.00 –7.54

Source: Datastream (not adjusted for dividends). Prices on 30 July (pm)

Feb Mar Apr May Jun Jul

7,000

7,200

7,400

7,600

750

Feb Mar Apr May Jun Jul

900

800

850

950

1,000

Chairman

sells 700,000