The Week UK – 23 August 2019

Shares CITY 51

24 August 2019 THE WEEK

Doric Nimrod Air Three
The Daily Telegraph
Shares in the trust, which leases
planes, dived when Airbus
declared it would stop making
A380s. The gloom’s overdone.
Airlines like Emirates rely on
the higher-capacity model
and will probably retain the
jets. Buy. 83p.

Ideagen
Shares
Fresh from consolidating a
highly fragmented sector and
conquering the US, the risk and
compliance software provider
is eyeing considerable new
opportunities in the Far East.
An impressive blue-chip client
list helps. Buy. 142p.

JPJ Group

The Times

The online bingo operator’s

revenues are up 14%, active

monthly customers by 7%,

and net debt is down by more

than £30m. The acquisition of

Gamesys meansagame-

changing move into the FTSE

250 index. Buy. 654p.

Renew Holdings

Investors Chronicle

This engineering services group

is sheltered from falling UK

construction output by its

focus on non-discretionary

infrastructure. Good growth

potential, and should land new

contracts in the rail and water

funding cycles. Buy. 388p.

Tate&Lyle

Shares

Aftera“testing” transfor-

mation, the sweeteners

specialist is ina“healthier

position”–annual results were

better than expected. Well

placed to profit from growing

consumer demand for plant-

based proteins. Buy. 727.2p.

Unilever

The Sunday Telegraph

Half-year results show that

emerging market growth

remains the key driver for the

Anglo-Dutch consumer goods

group. Protected byadiverse

portfolio providing a

consistency few can match.

Buy. £50.11.

Who’s tipping what

The week’s best shares

...and some to hold, avoid or sell

AA
Investors Chronicle
The roadside assistance and
insurance provider has made
“tentative progress” since last
year’s 13% contraction. But
growth isn’t expected until

2021. Despite “encouraging”
      cash flow, the net debt remains
      worrying. Sell. 58.8p.

Burford Capital
Shares
Shares in the litigation finance
expert tanked from around
£14 to just over 600p after
“mud-slinging” by short-seller
Muddy Waters. There’s talk of
“market manipulation” and an
FCA enquiry. Watch from the
sidelines. Hold. 824.5p

G4S

Investors Chronicle

The global security company is

de-merging its cash solutions

business to “inject momen-

tum”–it’s unclear when.

£398m of lease liabilities,

growing debt and the pension

deficit are “plenty to be

nervous about”. Sell. 171.6p.

Gooch&Housego

Investors Chronicle

The photonics specialist is

suffering from US-Chinese

tensions and dampened

demand for industrial lasers.

Internal issues include falling

financial metrics and an

underperforming recent

acquisition. Sell. £11.45.

ITV

The Times

The broadcaster has allied with

the BBC to launch BritBox

–“aBritish rival to Netflix and

Amazon Prime”–later this

year. But Apple and Disney

are also entering the streaming

market and advertising is

“sluggish”. Avoid. 104.6p.

Watches of Switzerland

The Times

The luxury watch retailer has

growth potential, but Brexit

uncertainty andapossible US

recession may give even the

wealthiest shoppers “pause”.

With no upcoming dividends,

more proof is needed it can

deliver. Hold. 285p.

Directors’ dealings

IQE

The 5G chipmaker’s CEO, Drew

Nelson,has sold almostathird

of hi sstake to US firm Equities

First Holdings, inathree-year

sale and buyback deal; in effect

securinga£4.8m loan. The

deal highlights IQE’s markets

and cash-generating ability.

Form guide

Shares tipped 12 weeks ago

Best tip

C&C Group

The Times

up 11.47% tos4.18

Worst tip

MaxCyte

The Mail on Sunday

down 24.22% to 122p

Market view

“When something as

important as the US bond

yield hits historical

extremes, it’s worth at least

adiscussion.”

Cliff Asness, of AQR

Capital Management.

Quoted in the FT

SOURCE: INVESTORS CHRONICLE

Market summary

6-month movement in the FTSE 100 index

20 Aug 2019 Week before Change (%)

FTSE 100 7125.00 7250.90 –1.74%

FTSE All-share UK 3904.60 3961.16 –1.43%

Dow Jones 26082.08 26320.83 –0.91%

NASDAQ 7990.51 8017.85 –0.34%

Nikkei 225 20677.22 20455.44 1.08%

Hang Seng 26231.54 25281.30 3.76%

Gold 1496.60 1504.70 –0.54%

Brent Crude Oil 59.89 61.35 –2.38%

DIVIDEND YIELD(FTSE 100) 4.60% 4.49%

UK 10-year gilts yield 0.45 0.49

US 10-year Treasuries 1.56 1.68

UK ECONOMIC DATA

Latest CPI (yoy) 2.1% (Jul) 2.0% (Jun)

2.9% (Jun)

+5.7% (Jun)

Latest RPI (yoy) 2.8% (Jul)

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

£1 STERLING $1.214 E1.094 ¥129.383

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

WEEK’S CHANGE, FTSE 100 STOCKS

RISES Price %change

Admiral Group 2175.00 +7.04

Ocado Group 1214.50 +3.49

Unilever (UK) 5070.00 +3.32

Sainsbury J 193.90 +3.25

Rolls-Royce Holdings 769.00 +2.18

FALLS

Evraz 493.00 –11.39

Royal Bank of Sctl. Gp. 184.50 –9.02

Anglo American 1716.40 –7.92

Kingfisher 188.00 –7.30

Intl. Cons. Airl. Gp. 415.90 –6.41

BEST AND WORST UK STOCKS OVERALL

TLA Worldwide 2.50 +455.55

Corero Network Secur. 3.25 –51.85

Source: Datastream (not adjusted for dividends). Prices on 20 Aug (pm)

Mar Apr May Jun Jul Aug

7,100

7,300

7,500

7,700

Mar Apr May Jun Jul Aug

85

55

65

95

75

CEO sells

11m