The Week 22Feb2020

Shares CITY 55

22 February 2020 THE WEEK

AshteadGroup
InvestorsChronicle
Theequipmenthiregroupis
capitalisingonanimmatureUS
market.Cyclicalvulnerability
shouldbeoffsetbythe
structuralshifttowardsrental.
Buybacksofferreturnsto
shareholdersandreinforce
momentum.Buy.£26.29.

GlaxoSmithKline
InvestorsChronicle
GSKisspinningoutits
consumerhealthcaredivision
tofocusonbiopharma.A
£3.3bninvestmentinR&Dhas
ledtosixpotentialdrug
approvalsthisyear.Given
potentialgrowth,shareslook
cheap.Buy.£17.71.

Grainger

TheTimes

TheUK’slargestprivate-

sectorlandlordhascompleted

a£ 187 mshareplacingto

doubleitsportfolioof9,0 00

flats.Wellsettobenefitfrom

demand;thelargerportfolio

willboostearningsand

income.Buy.312.2p.

HowdenJoineryGroup

TheSundayTimes

Withagrowingportfolio

of 740 out-of-townstores,

Howdenkitchensarefavoured

bybuildersandtradesmen...

andtheQueen–itwasgranted

awarrantin 201 5.Amarket

leaderwithahealthybalance

andrisingprofits.Buy.7 27 .6p.

RankGroup

Shares

Thecasino-to-bingooperatoris

generatingstrongrevenuesand

risingprofits.Theacquisition

ofonlinebingooutfitStride

Gaming,andinvestmentin

marketing,shouldboost

growthandprovidefinancial

muscle.Buy.301.5p.

Tate&Lyle

Shares

Thecash-generativefood

produceriswell-alignedwith

currenttrends,thankstoits

plant-basedingredients,

corn-basedandzero-calorie

sweeteners.Setforglobal

growthandyieldsanattractive

3.7%.Buy.786.6p.

Who’s tipping what

Theweek’sbest shares

...and some to hold, avoid or sell

AA
InvestorsChronicle
The insurance businessand
roadside membership are
growing,thanksto new
contractswith Admiral and
Uber. But there’sanFCA
pricing reviewahead, andsome
of its£3bndebt will need
refinancing. Sell.45.66p.

Centrica
The Times
The ownerofBritish Gas is
pursuing radical cost-cutting
as tariffcaps hurt revenues,
offloadingits non-consumer
nuclear holdingsand oi land
gas business.Growthprospects
and leadershipremain
uncertain. Avoid.71.75p.

Craneware

TheTimes

Craneware’s software helps

(mainly US) hospitals monitor

spending.Shares havebeen hit

by a“sales hiccup” andthe

loss of alargecustomer. But

strongcashreservesanda

pipelineofrecurringrevenues

are plus points.Hold .£19.65.

Man Group

Investors Chronicle

The world’slargestlisted hedge

fundhas been performing

erratically: assets under

managementhave “pretty

much movedsideways ”since

the endof2017. Theweak

track-record isuninspiring.

Sel l. 152p.

Plus500

TheTimes

The financialbetting firm has

been hitbytough regulationon

contractsfor difference(atype

of derivative), causingrevenues

to more than halve, andprofits

to slump. Plans foranew

Seychelleslicence are

“unclear”. Sell. 911p.

TI FluidSystems

TheDailyTelegraph

This fuel systemsspecialisthas

had “significant design wins”

relatingtothermalefficiency

managementsystems for

electriccars. TheIP an dthe

balance sheetappe ar sound,

sharesarecheap andity ields

3%.Hold. 235p.

Directors’ dealings

GamesWorkshop

Theriseoffantasytable-top

gameshasresultedin

“tremendouscommercial

opportunities”.“Outstanding”

resultshavepromptedthe

threeprincipals,includingCEO

KevinRountree,tohiveoff

£1.3minsharesintotal.

Form guide

Sharestipped 12 weeksago

Best tip

DiscoverIE Group

Investors Chronicle

up 23.73% to 584p

Worst tip

Shield Therapeutics

The Sunday Times

down 15.34% to 154.5p

Marketview

“There is uncertainty,

not just about the

epidemiological progress

of the virus, but effects on

the global economy.”

Citigroup analyst note.

Quoted in the FT

SOURCE: INVESTORS CHRONICLE

Market summary

6-monthmovement in the FTSE100index

18 Feb 2020 Week before Change (%)

FTSE 100 7382.10 7499.40 –1.56%

FTSE All-share UK 4118.84 4170.07 –1.23%

Dow Jones 29117.79 29293.32 –0.60%

NASDAQ 9678.06 9669.76 0.09%

Nikkei 225 23193.80 23685.98 –2.08%

Hang Seng 27530.20 27583.88 –0.19%

Gold 1590.80 1573.20 0.48%

Brent Crude Oil 57.21 54.33 5.30%

DIVIDEND YIELD(FTSE 100) 4.44% 4.37%

UK 10-year gilts yield 0.63 0.59

US 10-year Treasuries 1.54 1.58

UK ECONOMIC DATA

Latest CPI (yoy) 1.8% (Jan) 1.3% (Dec)

2.2% (Dec)

+4.0% (Dec)

Latest RPI (yoy) 2.7% (Jan)

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

£1 STERLING $1.302 E1.205 ¥143.488

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

WEEK’S CHANGE, FTSE 100 STOCKS

RISES Price %change

NMC Health 844.20 +8.48

Barratt Developments 870.80 +5.35

Taylor Wimpey 231.70 +4.98

Kingfisher 221.00 +4.00

Persimmon 3243.00 +3.81

FALLS

Tui (Lon) 855.20 –11.63

Centrica 73.66 –10.30

Ocado Group 1130.50 –9.88

Royal Bank of Sctl.Gp. 206.90 –7.01

Smurfit Kappa Gp. 2784.00 –6.89

BEST AND WORST UK STOCKS OVERALL

Tertiary Minerals 0.77 +282.50

Baron Oil 0.12 –52.94

Source: Datastream (not adjusted for dividends). Prices on 18 Feb (pm)

Sep Oct Nov Dec Jan Feb

5,000

6,000

7,000 3directors

sell 18,000

Sep Oct Nov Dec Jan Feb

7,600

7,300

7,500

7,400

7,100

7,200

7,700