Shares Magazine - May 24, 2018

GREAT IDEAS UPDATES

16 | SHARES | 24 May 2018

A DECENT trading update on 16 May helps to put

our trade on Cineworld (CINE) ŝŶƚŚĞƌŝŐŚƚĚŝƌĞĐƟŽŶ͘

/ƚƌĞƉŽƌƚĞĚς͘ϳйƌŝƐĞŝŶŐƌŽƵƉƌĞǀĞŶƵĞĂƚĐŽŶƐƚĂŶƚ

ĐƵƌƌĞŶĐŝĞƐ͘dŚĞh^ǁĂƐƚŚĞďĞƐƚƉĞƌĨŽƌŵĞƌǁŝƚŚ

ĂϭϬ͘ϮйƌŝƐĞ͕ǁŚŝůĞƚŚĞh<ĨĞůůϮ͘ϭйĂŶĚĞŶƚƌĂů

ĂƐƚĞƌŶƵƌŽƉĞͬ/ƐƌĂĞůƐůŝƉƉĞĚďLJϮ͘κй͘

/ƚŝƐǁŽƌƚŚŶŽƟŶŐƚŚĞƌĞƉŽƌƟŶŐƉĞƌŝŽĚ;ϭ:ĂŶƚŽ

ϭϯDĂLJͿŚĂĚǀĞƌLJƚŽƵŐŚĐŽŵƉĂƌĂƟǀĞĮŐƵƌĞƐƚŽďĞĂƚ

ŽŶĂLJĞĂƌͲŽŶͲLJĞĂƌďĂƐŝƐĨŽƌƵƌŽƉĞĂƐůĂƐƚLJĞĂƌ͛Ɛ

ƉĞƌŝŽĚǁĂƐƐƚĞĚďLJƚŚĞŵĂƐƐŝǀĞƐƵĐĐĞƐƐŽĨ

Beauty and the Beast and The Fate of the Furious͘

͚dŚĞ;ůĂƚĞƐƚͿƌĞƐƵůƚƐůĂƌŐĞůLJƌĞŇĞĐƚƚŚĞǀŽůĂƟůŝƚLJ

ŝŶƚŚĞĮůŵƐůĂƚĞ͕ǁŚĞƌĞĂŵĞĂŶŝŶŐĨƵůƚƌĞŶĚŝƐ

ĚŝĸĐƵůƚƚŽĞƐƚĂďůŝƐŚĂƚƚŚŝƐƉŽŝŶƚŽĨƚŚĞLJĞĂƌ͕͛ƐĂLJƐ

h^ĂŶĂůLJƐƚ,ĞŝĚŝZŝĐŚĂƌĚƐŽŶ͘

tĞ͛ƌĞŵŽƌĞŝŶƚĞƌĞƐƚĞĚŝŶŝŶĞǁŽƌůĚ͛Ɛ

ƉĞƌĨŽƌŵĂŶĐĞŽǀĞƌƚŚĞŶĞdžƚϭϮŵŽŶƚŚƐĂƐ

ƐƵĐĐĞƐƐĨƵůŝŶƚĞŐƌĂƟŽŶŽĨƚŚĞŶĞǁůLJͲĂĐƋƵŝƌĞĚh^

ŽƉĞƌĂƟŽŶƐǁŝůůďĞŬĞLJŝŶƐŝůĞŶĐŝŶŐƚŚĞĐƌŝƟĐƐǁŚŽ

ƐĂLJƚŚĞďƵƐŝŶĞƐƐƐŚŽƵůĚŶ͛ƚŚĂǀĞďŽƵŐŚƚZĞŐĂů

ŶƚĞƌƚĂŝŶŵĞŶƚĂŶĚƚĂŬĞŶŽŶƐŽŵƵĐŚĚĞďƚ͘

dŚĞĮůŵƐůĂƚĞĨŽƌƚŚĞƌĞƐƚŽĨϮϬϭΘůŽŽŬƐƌĞĂůůLJ

ŐŽŽĚĂŶĚǁĞĚŽŶ͛ƚďĞůŝĞǀĞƚŚĞtŽƌůĚƵƉĨŽŽƚďĂůů

ǁŝůůĐĂƵƐĞƚŽŽŵƵĐŚŽĨĂĚŝƉŝŶĞĂƌŶŝŶŐƐƐŚŽƵůĚ

ĐŽŶƐƵŵĞƌƐďĞĐŽŵĞĚŝƐƚƌĂĐƚĞĚďLJƚŚĞƐƉŽƌƟŶŐ

ĞǀĞŶƚ͘ŶĂůLJƐƚƐƐŚŽƵůĚŚĂǀĞĂůƌĞĂĚLJĨĂĐƚŽƌĞĚŝŶ

ƐŽŵĞĚŝƐƌƵƉƟŽŶŝŶƚŚĞŝƌĨŽƌĞĐĂƐƚƐ͘

>/&/E^hZE giant Aviva (AV.) has an

ĂĚǀĂŶƚĂŐĞǁŚĞŶŝƚĐŽŵĞƐƚŽƌŝǀĂůƐŝŶƚŚĞ

ƉƵƌĐŚĂƐŝŶŐŽĨůĂƌŐĞŬƐŽĨĂŶŶƵŝƚLJďƵƐŝŶĞƐƐ͘

'ŝǀĞŶƚŚĞĐŽŵƉĂŶLJŝƐĂĐŽŶŐůŽŵĞƌĂƚĞ͖ŝƚĂůƌĞĂĚLJ

ŚĂƐƌĞůĂƟŽŶƐŚŝƉƐǁŝƚŚƐŽŵĞŽĨŝƚƐƚĂƌŐĞƚƐ͘

&ŽƌĞdžĂŵƉůĞ͕ƚĂŬĞƚŚĞƌĞĐĞŶƚŚĞĂĚůŝŶĞͲŐƌĂďďŝŶŐ

άεϮρŵƉƵƌĐŚĂƐĞŽĨMarks & Spencer‘s (MKS)

ďƵůŬĂŶŶƵŝƚLJ͕ĂĚĞĂůŵŽƌĞƚŚĂŶρϬйůĂƌŐĞƌƚŚĂŶ

ŝƚƐŶĞdžƚďŝŐŐĞƐƚƚƌĂŶƐĂĐƟŽŶ͕ƚŚĞWĞĂƌƐŽŶWĞŶƐŝŽŶ

WůĂŶǁŚŝĐŚĐŽƐƚάςϬϬŵůĂƐƚKĐƚŽďĞƌ͘

ǀŝǀĂĂůƌĞĂĚLJƉƌŽǀŝĚĞĚŚĞĂůƚŚĂŶĚŐĞŶĞƌĂů

ŝŶƐƵƌĂŶĐĞĐŽǀĞƌĨŽƌDΘ^ĞŵƉůŽLJĞĞƐ͕ĂƐǁĞůůĂƐ

ƚƌĂǀĞůŝŶƐƵƌĂŶĐĞƚŽDΘ^ĂŶŬ͛ƐƌĞƚĂŝůĐƵƐƚŽŵĞƌƐ͘

ƌĞĚŝƚƋƵĂůŝƚLJŝƐƉĂƌĂŵŽƵŶƚĨŽƌĂŶŶƵŝƚLJĚĞĂůƐ͕

ĂƐĂŶLJŵŝƐĐŚŝĞĨǁŚĞŶŝƚĐŽŵĞƐƚŽƉĞŶƐŝŽŶƐďƌŝŶŐƐ

ƚŚĞǁƌĂƚŚŽĨƚŚĞ'ŽǀĞƌŶŵĞŶƚĂŶĚƚŚĞŵĞĚŝĂĂůŝŬĞ͘

dŚŝƐŝƐĂŶĂƌĞĂŝŶǁŚŝĐŚǀŝǀĂƐŚŝŶĞƐ͕ŚĂǀŝŶŐĂŶ

ĐƌĞĚŝƚƌĂƟŶŐ͘

dŚŝƐŵĂŬĞƐĂŚƵŐĞĚŝīĞƌĞŶĐĞǁŚĞŶŝƚ

ĐŽŵĞƐƚŽƉĞƌƐƵĂĚŝŶŐƚŚĞƉĞŶƐŝŽŶƚƌƵƐƚĞĞƐ

ĂƐƚŽǁŚŝĐŚŝŶƐƟƚƵƟŽŶŝƐƚŚĞŵŽƐƚĮŶĂŶĐŝĂůůLJ

ƐŽƵŶĚƚŽŚĂŶĚůĞƚŚĞĂƐƐĞƚƐ͘WĞƚĞƌ<ĞƩ͕ĂŶĂůLJƐƚ

ĂƚŝŶǀĞƐƚŵĞŶƚďĂŶŬ:ĞīĞƌŝĞƐ͕ƐĂLJƐƚŚŝƐƐƚĂƚƵƐ

ŐŝǀĞƐǀŝǀĂĂŶĂĚǀĂŶƚĂŐĞŽǀĞƌŝƚƐƵŶƌĂƚĞĚĂŶĚ

ƵŶůŝƐƚĞĚƉĞĞƌƐZŽƚŚĞƐĂLJĂŶĚW/͘

AVIVA

(AV.) 550P

CINEWORLD

(CINE) 267p

Gain to date: 8.1%

Original entry point:

Buy at 510.5p, 14 Dec 2017

Gain to date: 1%

Original entry point:

Buy at 264.4p, 3 May 2018

SHARES SAYS: È

Keep buying. (DC)

BROKER SAYS:

SHARES SAYS: È

Keep buying these shares as the market for bulk

annuities is still largely untapped with Aviva looking

to gain a real foothold in it. (DS)

BROKER SAYS:^1210

200

220

240

260

280

300

320

340

CINEWORLD

FTSE ALL SHARE

2017 2018

Rebased to first Source: Thomson Reuters Datastream

480

490

500

510

520

530

540

550

560

AVIVA

FTSE ALL SHARE

2017 2018

Rebased to first Source: Thomson Reuters Datastream

14 5 1