The Week - UK (2021-02-13)

Shares CITY 51

13 February 2021 THE WEEK

Amazon
TheTimes
FounderJeffBezosmaybe
steppingback,buttheonline
retailer’s“staggering”financial
performanceshowslittlesign
oflosingmomentum.Highly
profitable,withroomfor
growthinitsWebServices
arm.Buy.$3,312.53.

DunelmGroup
TheSundayTimes
Thekitchenequipmentand
softfurnishingsretailerhas
madehayasfamiliesoptfor
homeimprovementsduring
lockdowns.Gainingmarket
sharefrombricks-and-mortar
andonlineretailersthrough
websales.Buy.£12.61.

FrontierDevelopments

InvestorsChronicle

Video-gamingspecialists

havebenefitedfrommarket

growthof 8 %inthepandemic.

Frontier’sintellectualproperty

hasboostedmarginsand

generateda 15 %revenue

risefromitsexistingportfolio.

Buy.£32.35.

GreencoatUKWind

TheTimes

Thisinfrastructurefundowns

stakesin 38 windassetsacross

thehomenationsoftheUK,

generatingmorethan1.1GW

ofcapacity.Raisingfunds

throughshareplacingsto

acquiremoresites.Areliable

dividendpayer.Buy.1 37 .4p.

HeadlamGroup

TheMailonSunday

TheUK’slargestdistributor

ofcarpetsandfloorcoverings

washithardasthepandemic

struck.Nowsetforswift

recoveryandpayingadivi,

thankstoimprovedcost-saving

logisticsandanenhanced

onlineservice.Buy.390p.

StockSpiritsGroup

TheTimes

ThePolishvodkamakerhas

securedasizeabledistribution

dealwithDiageointheCzech

Republic.Lostsalesdueto

lockdownclosureshavebeen

mitigatedbystrongretail

tradingasitgainsmarket

shareinPoland.Buy.2 80 p.

Who’s tipping what

Theweek’sbest shares

...and some to hold, avoid or sell

Apple
The Times
The US computergiantis
making recordprofits,than ks
to surging salesin China.
Aiming to increase subscription
revenuesthroughmusic, cloud
storage andTVservices. A
strong business, but notcheap.
Hold.$133.94.

Boku
The DailyTelegraph
This mobilepayments
platform enablescustomers
to payfor goods andservices
viatheirphonebills. Popular
in emergingmarkets and
boosted by customers stuck
at home. Shares areup76.4%
in ayear. Hold. 145.5p.

BP

Investors Chronicle

A“pivotal” yearfor the

oil major as itfocuseson

reducingits production and

carbon footprint. Oil prices

haverecovered, but profits

havecrasheddue tolower

margins andfalling demand.

Sell. 260p.

Cost ainGroup

The Daily Telegraph

The contractorwashit by

“significant challenges” in

the pandemic. Butithas a

new CFO, agood pipeline of

contracts,resilient margins

and scope to helplong-

termcustomers save money.

Hold.58.9p.

Dr. Martens

TheTimes

Sharesin theboot- and

shoemaker, whichoperates

in 60countries,are up since

its January float.Ingood

growth mode, with rising

salesand profits andastrong

management team, but too

highl yvalued.Avoi d. 472p.

FDM Group

TheDailyTelegraph

FDMtrain sstaff, often

graduates knownas

“Mounties”, in areas such

as IT,and sends them to work

for itsblue-chipclients .The

transition to remote training

couldreaprewardslong-term.

Hold.£10.56.

Directors’ dealings

Softcat

Asurgeindemandfrompublic

sectorclientshasboosted

sharesintheITservicespro-

vidertoanearall-timehigh.

ChairMartinHellawellhas

takenprofits,selling£16.89m

worth,andCFOGraham

Charltonhascashedin£0.9m.

Form guide

Sharestipped 12 weeksago

Best tip

Tristel

Investors Chronicle

up 29.01% to 664.4p

Worst tip

Polymetal International

The Times

down 8% to £16.33

Market view

“The recovery and

reopening narrative is

so strong, it is very hard

to beat down.”

Kasper Elmgreen of

fund manager Amundi.

Quoted in the FT

SOURCES: INVESTORS CHRONICLE/MORNINGSTAR

Market summary

6-monthmovement in the FTSE100index

9Feb 2021 Week before Change (%)

FTSE 100 6531.56 6516.65 0.23%

FTSE All-share UK 3731.03 3707.20 0.64%

Dow Jones 31348.32 30812.23 1.74%

NASDAQ 14013.53 13620.55 2.89%

Nikkei 225 29505.93 28362.17 4.03%

Hang Seng 29476.19 29248.70 0.78%

Gold 1835.25 1862.95 –1.49%

Brent Crude Oil 61.07 57.50 6.21%

DIVIDEND YIELD(FTSE 100) 2.83% 2.94%

UK 10-year gilts yield 0.46 0.35

US 10-year Treasuries 1.14 1.11

UK ECONOMIC DATA

Latest CPI (yoy) 0.6% (Dec) 0.3% (Nov)

0.9% (Nov)

6.0% (Dec)

Latest RPI (yoy) 1.2% (Dec)

Halifax house price (yoy) 5.4% (Jan)

£1 STERLING $1.384 E1.140 ¥144.620

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

WEEK’S CHANGE, FTSE 100 STOCKS

RISES Price %change

NatWest 173.70 +12.10

Lloyds Banking 37.55 +10.40

Compass 1469.00 +8.00

Taylor Wimpey 165.90 +7.30

Glencore

Anglo American

263.40

2590.00

+6.70

+6.60

FALLS

Unilever 3950.00 –8.10

GlaxoSmithKline 1277.00 –6.70

Experian 2533.00 –6.60

Bunzl 2313.00 –6.10

SSE

Just Eat Takeaway.com

1438.00

7766.00

–4.80

–4.50

Source: FT (not adjusted for dividends). Prices on9Feb (pm)

5,500

7,000

6,500

6,000

Sep Oct Nov Dec Jan Feb

1,600

Sep Oct Nov Dec Jan Feb

1,100

1,200

1,300

1,400

1,500 sell 1,171,0002directors