The Week UK - 29.02.2020

Shares CITY 55

29 February 2020 THE WEEK

Biffa
InvestorsChronicle
Environmentalpolicy
issupportingthewaste
managerasitconsolidates
small,regionaloperators.
Thegroupisinvestingin
higher-marginplastics
recyclingandenergyfrom
waste.Buy. 29 7p.

BluePrismGroup
TheTimes
BluePrism’sroboticsoftware
automatesadministrative
processes.Rapidlygrowing,
andclosetobreakingeven
thankstocontractswith
Audi,AmazonandL’Oréal.
Buy.Butnotforthefaint-
hearted.£16.04.

Diageo

TheShareCentre

Thedrinksgianthasan

“enviable”portfolioof

brands,includingTanqueray

gin,JohnnieWalkerwhisky

andSmirnoffvodka.Cash-

generative,withrisingsales

andprofitsandabuyback

programme.Buy.£30.15.

dotdigitalGroup

TheShareCentre

Thisomni-channeldigital

marketinggroupuses

artificialintelligencetohelp

clientsengagewithcustomers.

Marginsarehigh,with

rising,recurringrevenues

asitexpandsoverseas.

Buy.£ 108 .5p.

PetsatHomeGroup

TheDailyTelegraph

Thepetshopchainisgrowing

stronglyat7%peryear,

withlowdebtandgoodcash

generation.Storesprovide

multipleservices,including

veterinary,pricesarelow,and

customersloyal.Yields 2 .4%.

Buy.309p.

Segro

InvestorsChronicle

Segrodevelopsandmanages

warehousesfore-commerce.

Sharesareup40%inthepast

year,thankstocontinued

rentalgrowthandscale.

Exposuretooverseasgrowth

potentialjustifiesthepremium.

Buy.931p.

Who’s tipping what

Theweek’sbest shares

...and some to hold, avoid or sell

CLSHoldings
The Times
CLS hashonedits
unglamorousbut profitable
portfolioofoffice blocksin
suburbanlocationswithgood
transport linksin Britain,
Germany and France.Low
vacancyratesand rising
valuationsare commenda ble.
Hold.273p.

DixonsCarphone
The Times
Apple’s warning that the
coronavirusoutbreakcouldhit
iPhoneproduction has hada
knock-on effectonthis retailer,
whichhas been suffering weak
mobile phone salesanyway.
Avoid. 135p.

Indivior

Investors Chronicle

The pharmagrou phas sh ifted

focu stoinjectabletreatments

for opio id addiction after

chea p, genericalternatives

hit SuboxoneFilmsales. But

a44% slumpin USsales is

“alarming”, as arecontinued

legal problems.Sell. 40p.

Metro Bank

Investors Chronicle

The new CEO mustproduce

acredible turnaroundplan

for thelender.Butpotential

willbehardtosquare with

an overwroughtbalance

sheet,vanishing profitability

and regulatory investig ation.

Sell. 190p.

NMCHealth

TheSunday Telegraph

Ashort-sellerhas raised

doubtsoverthe Gulf-based

hospitalgroup’sfinances. The

founderhas quit, and there

are concerns over directors’

dealings.Sharesareup, but

confidencehas be en shaken.

Sell. 855.2p.

Persimmon

TheSunday Times

Despiteconcernsabout

buildin gstandards,the

housebuilder ison tr ack to

reportasecondyear of profits

topping £1bn. A“flurryof

activity”is expectedbefore

the end of Help to Buy, andit

yields 7.21%.Hold. £32.82.

Directors’ dealings

BarrattDevelopments

COOStevenBoyeshassold

sharesworth£3.66min

Britain’slargesthousebuilder

“tobalancepersonal

investments”.Barrattboasts

healthycashflowsanda

strongbalancesheet.Boyes

retainsa 45 7,890holding.

Form guide

Sharestipped 12 weeksago

Best tip

Redrow

Investors Chronicle

up 28.29% to 780p

Worst tip

Bloomsbury Publishing

Investors Chronicle

down 1.48% to 246.31p

Market view

“The coronavirus outbreak

is likely to be only one of

many negative shocks this

year... The risk ofaglobal

recession is rising.”

Nouriel Roubini of NYU’s

Stern School of Business.

Writing in the FT

SOURCE: INVESTORS CHRONICLE

Market summary

6-monthmovement in the FTSE100index

25 Feb 2020 Week before Change (%)

FTSE 100 7017.88 7382.10 –4.93%

FTSE All-share UK 3921.63 4118.84 –4.79%

Dow Jones 27669.24 29117.79 –4.97%

NASDAQ 9151.08 9678.06 –5.45%

Nikkei 225 22605.41 23193.80 –2.54%

Hang Seng 26893.23 27530.20 –2.31%

Gold 1671.65 1590.80 5.75%

Brent Crude Oil 55.41 57.21 –3.15%

DIVIDEND YIELD(FTSE 100) 4.67% 4.44%

UK 10-year gilts yield 0.52 0.63

US 10-year Treasuries 1.34 1.54

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 $1.275 E1.171 ¥140.621

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

WEEK’S CHANGE, FTSE 100 STOCKS

RISES Price %change

Bunzl 2050.00 +7.25

NMC Health 880.20 +4.26

Centrica 76.00 +3.18

Flutter Entertainment 8820.00 +2.34

Polymetal Intl. 1320.00 +2.33

FALLS

easyJet 1213.00 –18.70

Tui (Lon) 730.20 –14.62

Carnival 2639.00 –14.40

Intl. Cons. Airl. Gp. 552.80 –12.53

Aveva Group 4600.00 –12.30

BEST AND WORST UK STOCKS OVERALL

Bahamas Petroleum 4.85 +61.67

Worldsec 1.50 –66.67

Source: Datastream (not adjusted for dividends). Prices on 25 Feb (pm)

7,800

7,000

Sep Oct Nov Dec Jan Feb

7,600

7,200

7,400

900

Sep Oct Nov Dec Jan Feb

600

800

700

Director

sells 435,000