8 August 2017
Pets at Home, Paddy Power Betfair and Bellway“The FTSE100 drifted lower following a mixed session on Asian markets as investors reacted to lower-than-expected trade numbers out of China,” says AJ Bell Investment Director Russ Mould.
“The British reputation as a nation of animal lovers has been borne out with Pets at Home’s latest figures showing increased revenues despite a more general...
7 August 2017
Lonmin, KEFI Minerals and Ultra Electronics“The FTSE100 started the week on the front foot as traders followed positive equity markets in Asia this morning and a strong close in the US on Friday,” says AJ Bell Investment Director Russ Mould.
“ Lonmin’s shares edged up in early trading after the group unveiled new cost-cutting measures. The group’s third quarter update in July noted an...
4 August 2017
Royal Bank of Scotland, Merlin Entertainments and Anglo African Oil & Gas“Blue-chips confounded forecasts and edged lower at the start of trading following mixed performances in Asia this morning and in the US overnight,” says AJ Bell Investment Director Russ Mould.
“ Royal Bank of Scotland led the FTSE100 in early trading after it swung into the black in the first half with operating profits of £1,951m against a loss...
3 August 2017
Why pricing power matters when it comes to picking stocksBack in May, this column looked at how to test whether a forecast dividend payment from a company was safe or potentially at risk of a cut, in the form of a check-list of financial ratios (see here).
But such research needs to dig deeper still.
We will now look at the operational characteristics of those companies which have the most consistent...
3 August 2017
No news is good news as Next sticks to forecasts and dividend payment planThe delivery of a first-half trading update that was simply no worse than expected is proving enough to take Next to the top of the FTSE 100 this morning, helped by confirmation of the retailer’s special dividend plan and a rally in the pound, as well as the absence of any further profit warning. This is not to say the results were pretty.
Full...
3 August 2017
Next, Aviva and Cobham“The FTSE100 opened in negative territory with traders cautious ahead of the Bank of England’s decision on interest rates and its latest inflation report. It will also be releasing the minutes to the monetary policy committee meeting and a key indicator of economic sentiment will be how many members voted to keep interest rates on hold. This is...
2 August 2017
BAE Systems, William Hill and Johnston Press“Blue-chips opened in positive territory to extend yesterday's advance. Asian markets posted gains this morning as did US stocks overnight. Traders will be looking to UK construction PMI data due later this morning and the latest US job figures this afternoon,” says AJ Bell Investment Director Russ Mould.
“Defence group BAE Systems led the FTSE100...
1 August 2017
Direct Line Insurance Group, Rolls-Royce and Taylor Wimpey“Blue-chips opened on the front foot as investors welcomed earnings from companies including BP, Rolls-Royce and Centrica. Traders will be keeping a close eye on the latest UK PMI reading, due later this morning,” says AJ Bell Investment Director Russ Mould.
“ Direct Line Insurance Group topped the FTSE100 board in early trading following a strong...
31 July 2017
Home comforts carry HSBC higher"Shares in megabank HSBC are trading at post-financial-crisis highs, helped by a set of solid interims, an unchanged dividend and a new $2 billion share buyback scheme as the lender makes the most of buoyant conditions in Asia," says AJ Bell Investment Director Russ Mould.
"The Hong Kong and Shanghai Banking Corporation, as it used to be known...
31 July 2017
HSBC, Begbies Traynor and Fidessa“The FTSE 100 started the trading week on front foot following Asian stocks which were generally higher this morning. Markets in New York were mixed at the close on Friday,” says AJ Bell Investment Director Russ Mould.
“ HSBC was one of the blue-chip’s biggest risers after it announced a 5% increase in first half pre-tax profits and a share...
28 July 2017
Barclays, IAG and Rightmove“The FTSE100 started the last session of the trading week on the back foot, extending yesterday's downturn, with an element of profit taking at play. This was also seen in Asian markets overnight, while US markets were mixed,” says AJ Bell Investment Director Russ Mould.
“ Barclays edged higher in early trading after a 13% increase in first half...
27 July 2017
Diageo, Anglo American and AstraZeneca“Blue-chips edged into positive territory following on from gains on Wall Street and in Asia. Oil prices weakened overnight, while precious metals were on the up,” says AJ Bell Investment Director Russ Mould.
“Drinks giant Diageo led the FTSE100 in early trading following strong full-year results with operating profits up 25% at £3.6bn. The group...
26 July 2017
Everything you wanted to know about Bitcoin (but were afraid to ask)Normally people get excited by lower prices and discounts as it makes things cheaper to buy. In the case of quoted securities it potentially makes them more profitable and safer to own, as disciples of Warren Buffett and Benjamin Graham will argue that buying at low valuation can both increase your upside and protect your downside.
But one of the...
26 July 2017
ITV, Marston's and Faroe Petroleum“Blue-chips confounded forecasts and opened on the front foot ahead of today's key quarterly GDP figures. US markets strengthened overnight and Asian stocks started the day in positive territory,” says AJ Bell Investment Director Russ Mould.
“ ITV topped the FTSE100 in early trading despite a fall in first half profits. The broadcaster revenues...
25 July 2017
Fever-Tree, Informa and Domino's Pizza“The FTSE100 bounced back after yesterday's losses with investors hunting down bargain trades. Asian markets got off to a lacklustre start this morning and Wall Street ended mixed overnight,” says AJ Bell Investment Director Russ Mould.
“Carbonated mixers group Fevertree’s shares fizzed in early trading after the group posted a 77% jump in first...
24 July 2017
Ryanair, Reckitt Benckiser and Hunters Property“The FTSE100 started the week in negative territory following a weaker close in the US on Friday and a mixed session on Asian markets. Investors will have noted that while the IMF has left its global growth projections unchanged with global output projected to grow by 3.5% in 2017 and 3.6% in 2018, it has downgraded forecasts for both the UK and...
21 July 2017
Vodafone, Paysafe and AO World“The FTSE100 edged higher in early trading following a mixed performance on Wall Street and minor retreats in Asia. Investors will be looking at the UK’s public-sector net borrowing data due mid-morning, and a raft of eurozone services and manufacturing purchasing-manager index data around the same time,” says AJ Bell Investment Director Russ Mould...
20 July 2017
Share buybacks: pros and consIf a firm has a strong competitive position, which in turn grants it pricing power, there is a fair chance that the company will be able to generate consistently good operating margins and cash flow and therefore be able to return cash to investors.
And ultimately it is the ability to return cash to shareholders that separates share certificates...
20 July 2017
Sports Direct, Anglo American and Unilever“The FTSE100 opened in positive territory with investors looking to UK retail sales data out mid-morning, followed by CBI industrial order expectations and the European Central Bank's rates call early this afternoon,” says AJ Bell Investment Director Russ Mould.
“ Sports Direct topped the FTSE250 board in early trading despite a 58.7% fall in...
19 July 2017
Reckitt Benckiser, TalkTalk and DP Poland“The FTSE100 opened on the front foot with investors looking ahead to tomorrow’s retail sales and industrial order expectations data and public sector net borrowing figures on Friday,” says AJ Bell Investment Director Russ Mould.
“ Reckitt Benckiser topped the blue-chip board in early trading after agreeing to sell its French's Food arm to...
18 July 2017
Safestyle, Headlam and Bloomsbury“The FTSE100 opened in negative territory with investors waiting on a string of UK inflation data out mid-morning from the Bank of England, with the country's consumer-price index in particular focus. Inflation has been rising since the last year’s EU referendum and in recent weeks BoE officials have been more hawkish on interest rates,” says AJ...
17 July 2017
Revealed - the FTSE 100 firms with the longest runs of dividend increases27 FTSE 100 firms have increased their dividend every year for at least 10 years:
Company Number of years Scottish Mortgage 34 Johnson Matthey 31 SSE 26 Bunzl 24 Sage 22 British American Tobacco 20 Croda 19 DCC 19 Diageo 19 Associated British Foods 18 Compass 17 Paddy Power Betfair 17 Babcock International 15 Imperial Brands 15 Intertek 15 BAE...17 July 2017
Reassuring Chinese GDP growth gives markets one less thing to worry about (for now)The West would be ecstatic if its economies were to suddenly start growing by nearly 7% a year but the second-quarter increase of 6.9% generated by China is the norm for the Middle Kingdom and this figure should help to reassure those who are worried that Beijing’s gathering debt mountain mean it could one day suffer a hard landing.
Boosted by both...
17 July 2017
ITV/easyJet, Weir and Finsbury FoodBlue-chips opened on the front foot following gains in Asia this morning and Friday's improvement on Wall Street,” says AJ Bell Investment Director Russ Mould.
ITV and easyJet went in opposite directions on the FTSE100 after the airline’s chief executive Carolyn McCall was named as the broadcaster’s new boss. McCall, who has built and led the...
14 July 2017
Hays, Independent Oil & Gas and Character“Blue-chips edged lower with traders looking to a raft of US data later today, including retail sales and consumer inflation figures. Industrial production, business inventories and capacity utilisation will also be in focus,” says AJ Bell Investment Director Russ Mould.
“Recruitment group Hays saw continued growth in its fourth quarter with like...