2 March 2018
FTSE lower, Mondi lifted by special dividend, IMI outlook disappoints“The FTSE 100 starts the day on the back foot after weakness in the US and Asia overnight and ahead of a widely trailed speech by prime minister Theresa May on Brexit later,” says AJ Bell Investment Director Russ Mould.
MONDI
“The market’s obsession with income continues as the one euro special dividend which accompanies 2017 results from paper...
1 March 2018
How to build a margin of safety into stock portfolios (Part II)The first part of this column, which looked at price/earnings ratios (PEs) and how to use them cited Warren Buffett a lot. With uncanny timing, the American investment legend’s annual Letter to Shareholders in his Berkshire Hathaway vehicle arrived last weekend (24 February) to provide an ideal context for the second part of our look at how to...
1 March 2018
WPP suffers, Howden Joinery’s property challenge and Merlin bounces back"The UK stock market has recently been acting like a rollercoaster in slow motion. It nudges up a tiny bit and eases back a tiny bit. Today the FTSE 100 slips 0.3% to 7,211," says AJ Bell Investment Director Russ Mould.
WPP
“The string of disappointing updates from WPP continues as it posts its worst set of numbers since the financial crisis and...
28 February 2018
ITV slumps, Admiral pays 27th special dividend, Foxtons’ bleak results“After two positive sessions this week the FTSE 100 takes a step back on Wednesday, slipping 0.4% to 7,256, dragged down by weakness in the mining sector,” says AJ Bell Investment Director Russ Mould.
ITV“New ITV chief executive Carolyn McCall gets off to a sticky start in her new role as the free-to-air broadcaster reports its 2017 results. The...
27 February 2018
Comcast ignores Warren Buffett’s warning as it reaches for Sky“No sooner has Warren Buffett warned of the difficulties that he and Berkshire Hathaway business partner Charlie Munger are having in finding good acquisitions at sensible prices than a bid battle has broken out for British satellite broadcaster Sky,” says AJ Bell Investment Director Russ Mould.
“Buffett is sticking to his valuation disciplines by...
27 February 2018
Persimmon becomes a cash machine for shareholders (as well as its managers)“Questions will be asked about the structure of 2012’s long-term incentive plan, the riches it bestowed upon management and how shareholders let it through on the nod, but Persimmon has gone a long way to calming at least one unhappy party by showering investors in the stock with a cash windfall of their own,” says AJ Bell Investment Director Russ...
27 February 2018
Sky bid battle, Persimmon’s dividend delight and Greggs’ pedestrian earnings“The UK stock market continues to nudge ahead with the FTSE 100 rising 0.3% to 7,310 in early trading on Tuesday. Media stocks, housebuilders and banks dominate the leader board,” says AJ Bell Investment Director Russ Mould.
Sky“The plot has thickened at Sky as NBC and Universal owner Comcast trumps 21st Century Fox’s longstanding recommended...
26 February 2018
FTSE up, Hammerson’s odd highlight, ABF’s Primark conundrum and Bunzl’s Amazon threat“The FTSE 100 starts the week on a positive note, rising 0.5% to 7,281, help by renewed strength in mining and consumer goods stocks,” says AJ Bell Investment Director Russ Mould.
Hammerson“It seems odd that Hammerson regards its proposed acquisition of shopping centre investor Intu Properties as being its highlight of 2017. That deal didn’t go...
23 February 2018
FTSE struggling, RBS fails to impress, IAG misses forecasts and Rightmove's underappreciated position“The UK stock market doesn’t seem to have the energy to recover all the ground lost at the start of the month.
“It is on track to end the latest week down nearly 1% at 7,237. That’s still more than 3% below the level at which the market traded before the global stock market sell-off began on 2 February.
“The latest reporting season continues...
22 February 2018
Barclays’ shares key attraction is they are cheap (but don’t they deserve to be?)“The sharp rise in Barclays’ shares today reflects management’s optimism on the planned 2018 dividend payment of 6.5p per share, and the future benefits of further cost cuts and changes in the US tax laws, as the messy fourth-quarter numbers themselves offered little to write home about,” says AJ Bell Investment Director Russ Mould.
“Investors may...
22 February 2018
FTSE weak as US rate worries return, Centrica maintains dividend, Barclays ups payout guidance and Anglo American boosted by commodities rebound“The FTSE 100 was down more than 1% early on as investors digested the latest minutes from the US Federal Reserve” says AJ Bell Investment Director Russ Mould.
Centrica“Investors were expecting a very poor 2017 performance from Centrica and that is what they got with profit down 17% to £1.25bn.
“Relief the situation had not deteriorated any...
21 February 2018
How to build a margin of safety into stock portfolios (Part I)The UK stock market’s leading indices, the FTSE 100, FTSE 250, FTSE All-Share and (for small-cap fans) FTSE AIM All-Share, have all forged some kind of rally subsequent to the sudden slump of early February.
However, not one of the quartet is showing a gain for the year, as of the time of writing, unlike the headline American benchmarks, the Dow...
21 February 2018
FTSE falls on weak US cues, Lloyds unveils buyback, Barratt’s record first half and AA drives down dividend“The FTSE 100 falls 0.3% early on after weak trading on Wall Street overnight” says AJ Bell Investment Director Russ Mould.
Lloyds Banking“Investors gave UK bank Lloyds the benefit of the doubt despite the fact it posted 2017 pre-tax profit short of expectations. Profit was up 24% to £5.3bn but below consensus forecasts for £5.9bn thanks to...
20 February 2018
FTSE prepares for results deluge, HSBC disappoints on dividend, BHP plans swift shale exit and Dunelm’s integration headaches“The UK stock market holds firm as the full year results season starts to get into full swing. The FTSE 100 was unmoved at 7,247 in early trading on Tuesday,” says AJ Bell Investment Director Russ Mould.
HSBC“ HSBC has kicked off the latest reporting season for UK-listed banks with an 11% rise in adjusted pre-tax profit to $21bn in 2017. However...
19 February 2018
Sluggish sales progress bruises Reckitt Benckiser’s shares“A return to sales growth in the fourth quarter, increased cost-saving targets and a higher dividend are not proving enough for shareholders in Reckitt Benckiser, whose shares are the worst performers in the FTSE 100 in early trading” says Russ Mould, AJ Bell Investment Director.
Source: Company accounts
“The problem may not be the numbers...
19 February 2018
FTSE in positive mood, Reckitt sales fall flat, tiny margins for McColl’s and Dart Group soars“The UK stock market starts the new week in a positive mood, nudging ahead 3 points to 7,297, propped up by strength in airlines, banks and utility companies,” says AJ Bell Investment Director Russ Mould.
Reckitt Benckiser“Consumer goods firm Reckitt Benckiser is guiding for a 2% to 3% increase in like-for-like revenue in 2018 but having promised...
16 February 2018
FTSE on track for positive returns this week, Segro in strong demand and CVS disappoints again“The UK stock market has currently risen by 2.6% this week as measured by the FTSE 100, implying some stability following the previous week’s sell-off. Next week will be very interesting to watch given the large number of big companies reporting earnings or updating on trading. Corporate news can stimulate higher trading volumes,” says AJ Bell...
15 February 2018
Convatec still wounded, Standard Life Aberdeen shock and RELX reassures“The FTSE 100 soldiers on, rising 40 points to 7,253 in a market led by miners and banks,” says AJ Bell Investment Director Russ Mould.
Convatec“The fanfare that surrounded Convatec’s IPO was short-lived and the wound care company is still nursing a slight cold today.
“The business quickly joined the FTSE 100 index soon after floating on the...
14 February 2018
FTSE gains ground, Carillion fall-out continues and clouds clearing for Sky“The FTSE 100 was in the ascendancy early on Wednesday after gains on Wall Street overnight and ahead of the publication of US inflation figures later,” says AJ Bell Investment Director Russ Mould.
Galliford Try“Construction, regeneration and housebuilding firm Galliford Try serves up a nasty surprise for investors this morning in the form of a...
13 February 2018
FTSE static, TUI’s strategic progress and relief at Pendragon results“The UK stock market is static following yesterday’s small recovery. The FTSE 100 moves up a mere 2.6 points in early trading to 7,179, perhaps due to a lack of major corporate news to drive trading volumes,” says AJ Bell Investment Director Russ Mould.
TUI“Tour operator TUI has reported a satisfactory first quarter trading update with seasonal...
12 February 2018
UK markets bounce back, Barclays still in pain, Acacia’s horrific results and UP Global Sourcing’s latest disaster“The UK stock market starts the new week in a better mood, rising 1.1% to 7,170 thanks to particular strength in mining stocks, insurers and banks,” says AJ Bell Investment Director Russ Mould.
Barclays“Try as it might the UK banking sector is still struggling to distance itself from a financial crisis which began more than a decade ago.
“The...
8 February 2018
Market slips back, AA recovery, new TalkTalk warning and Compass pushes ahead“The UK stock market recovery rally didn’t last long with the main indices taking a small step back as markets open on Thursday. The FTSE 100 slips 0.4% to 7,253 and the FTSE 250 dips 0.2% to 19,659. This implies investors are still nervous following the troubles at the start of the week,” says AJ Bell Investment Director Russ Mould.
AA“The AA...
7 February 2018
Will the Year of the Dog mean China is markets’ best friend or a foe?While drops in the US dollar, the American Treasury market and even the US stock market are grabbing all of the headlines, China’s currency is storming higher, buoyed by solid economic data and the political stability which seems to be the result of last autumn’s 19th five-yearly Party Congress.
China’s Shanghai Composite index also made good...
7 February 2018
Five lessons to learn from the market meltdownAs the legendary US baseball player Yogi Berra once noted: “It’s tough to make predictions, especially about the future.”
The task is a precarious and generally thankless one, especially when it comes to financial markets, not least because no-one – but no-one – has a crystal ball.
Positive forecasts can easily come unstuck and then be subject to...
7 February 2018
Rio Tinto’s impressive comeback, Imperial Brands fights back and Scottish Mortgage tops the leaderboard“Investors will be relieved that the markets aren’t tanking for another day. The FTSE 100 is up 0.7% to 7,191 in early trading on Wednesday, although it is impossible to say if the recovery will be sustained for the rest of the week,” says AJ Bell Investment Director Russ Mould.
Rio Tinto“FTSE 100 miner Rio Tinto is certainly singing the right...
6 February 2018
Ocado’s big challenge, good news for BP and sales setback for Babcock“Global stock markets continue to fall sharply with the FTSE 100 down a further 2.6% to 7,148 in early trading on Tuesday,” says AJ Bell Investment Director Russ Mould.
Ocado“ Ocado says the last 12 months have been ‘transformational’ for the business after winning overseas partnerships. But the performance statistics don’t quite live up to the...
5 February 2018
Tesco’s important move, Randgold’s mining code shock and Ryanair’s gloomy outlook“The FTSE 100 starts the week on a bad note, falling 1.1% to 7,358, echoing a similar sell-off in Asia and following a weak session on the US last Friday,” says AJ Bell Investment Director Russ Mould.
Tesco“ Tesco’s guidance for current financial year operating profit of at least £1.575bn shows the business is making steady progress in rebuilding...
2 February 2018
BT full year outlook clouded, AstraZeneca drugs sales fall, Cobham cashes in“The FTSE 100 was treading water in early trading ahead of the widely followed US non-farm payrolls release later,” says AJ Bell Investment Director Russ Mould.
BT“The market appears slightly sceptical of telecoms business BT’s confidence in the full year outlook after a 3% dip in third quarter revenue. Pre-tax profit for the nine months to the...
1 February 2018
Shell shows that cash is king“For the last two years, Shell has been dogged by concerns that its annual dividend was at risk of a cut owing to the plunge in oil and natural gas prices but today’s full-year figures for 2017 should help put such worries to rest, thanks to an extensive self-help programme and also a rebound in crude,” says Russ Mould, AJ Bell Investment Director...
1 February 2018
Shell’s stellar year, Unilever nears 1-year anniversary of takeover approach, Vodafone has minor setback“The FTSE 100 picks up speed after a difficult few days, rising 10 points to 7,543 thanks to gains in utility stocks and banks,” says AJ Bell Investment Director Russ Mould.
Royal Dutch Shell“Oil producers have been waiting for more than three years for the oil price to properly regain strength and it’s now finally happened. With Brent Crude oil...
31 January 2018
Is this really the end for the long bull run in bonds?Japanese Government Bonds (JGBs) have the nickname of ‘the widow maker’ because so many traders have come unstuck trying to call the top in the JGB market over the past 25 years, generally getting themselves carried out as they shorted, or sold, Tokyo’s debt market.
Experts who look at, and investors with exposure to, the West’s Government debt...
31 January 2018
Capita shock profit warning, Wizz Air loses altitude“The FTSE 100 stabilised after yesterday’s big sell off as investors braced themselves for the latest interest rate announcement from the US Federal Reserve,” says AJ Bell Investment Director Russ Mould.
Capita“Outsourcer Capita lost nearly a third of its market value this morning, its biggest ever one day fall, as new chief executive Jonathan...
30 January 2018
Domino's Pizza, Informa and GreencoreRuss Mould, AJ Bell Investment Director comments:
Domino's Pizza“The cold weather spell towards the end of last year appears to have been a key sales driver for Domino's Pizza as it reports strong numbers for the 13 weeks to 24 December 2017. That's driven people to stay indoors, put their feet up and watch the telly with a takeaway. Domino's...
29 January 2018
Petra Diamonds profit warning, GKN pensions alert, SThree’s overseas jobs boost“The FTSE 100 starts the week on a positive note, rising 10 points to 7,675. Miners and insurers are leading the charge, more than offsetting weakness in consumer goods companies,” says AJ Bell Investment Director Russ Mould.
Petra Diamonds“There is no sparkle to Petra Diamonds’ shares as they collapse on news of a profit warning. The miner says...
26 January 2018
Dollar’s dive could derail some highflying UK stocks in 2018“Way back in 1971 the then US Treasury Secretary John Connally famously declared ‘The dollar is our currency but it’s your problem’ and the person currently in that post, Steve Mnuchin, seems equally unconcerned by the greenback’s latest move lower,” says Russ Mould, AJ Bell Investment Director.
“However, a sustained slide in the buck could start...
26 January 2018
Ingenta, Jaywing and AstraZeneca“The FTSE 100 opened in positive territory ahead of this morning’s fourth quarter GDP figures, which will give some insight into the general state of the UK economy,” says AJ Bell Investment Director Russ Mould.
“ Ingenta, a leading software and service provider to the publishing and media industry, was a double-digit riser following further...
25 January 2018
Hornby, Kier and Greene King“The FTSE 100 opened in negative territory after sterling's gains and a mixed performance on Wall Street overnight dragged on the market,” says AJ Bell Investment Director Russ Mould.
“Model train maker Hornby was a double-digit faller after warning that full-year losses would be worse than expected. The group decided in October that it would no...
25 January 2018
All hail the declining dollarThe American politician John Connally packed a lot into his life, including a rare switch from the Democratic to the Republican Party, but he is best known for two things.
First, he was sat in the same limousine as John F. Kennedy when America’s thirty-fifth President was assassinated in Dealey Plaza, Dallas Texas in November 1963.
Second, as...
24 January 2018
Wetherspoon, WH Smith and Fresnillo“The FTSE 100 was down in early trading as a firmer pound hurt exporters,” says AJ Bell Investment Director Russ Mould.
“Pub group JD Wetherspoon topped the FTSE 250 board after better-than-expected like-for-like sales in the first 12 weeks of its second quarter. The group is now anticipating underlying pre-tax profits to be slightly better than...
23 January 2018
Pets at Home gives short-sellers a nasty bite“Having been carried out by online grocer Ocado yesterday short sellers are being bitten by Pets at Home today, as the specialist retailer and provider of veterinary and grooming services reveals stronger-than-expected trading for the third quarter,” says AJ Bell Investment Director, Russ Mould.
“Shares in the Cheshire-headquartered firm loped 8%...
23 January 2018
easyJet, N Brown and Marston's“The FTSE 100 is fighting back after last week's wobble, trading 17 points higher today at 7,732. The banking sector is once again helping to lead the index, together with gains in the large drug companies,” says AJ Bell Investment Director, Russ Mould.
"A better than expected first quarter trading has given easyJet’s shares a decent lift. It is...
22 January 2018
Dixons Carphone, GVC and Connect Group“The FTSE 100 nudged 4 points higher to 7,735, propelled by gains in banking and utility stocks,” says AJ Bell investment director Russ Mould.
“ Dixons Carphone’s trading update is a big relief to the market even though the CEO is leaving and the upper end of its full year pre-tax profit guidance has been trimmed from £400m to £385m. Investors...
19 January 2018
Carpetright, Dignity and Bonmarche“The FTSE 100 edged higher after investors in Asia appeared to be protecting positions this morning, given last night's decline on Wall Street,” says AJ Bell Investment Director Russ Mould.
“ Carpetright’s shares plummeted in early trading after it slashed its profit guidance following a slump in sales. The post-Christmas period is traditionally a...
18 January 2018
Countrywide, Whitbread and Halfords“The FTSE 100 was down in early trading, extending its three-day losing streak,” says AJ Bell Investment Director Russ Mould.
“Property services group Countrywide’s shares tumbled after it warned that full year income and earnings would be down on last time. The group’s performance has been hit by a slump in its sales and lettings business with...
17 January 2018
Are hopes for a tax-cut boost to US corporate earnings simply (American) pie in the sky?All four leading US stock market indices – Dow Jones Industrials, S&P 500, Nasdaq Composite and Russell 2000 – all racked up a string of record closing highs in 2017 and one key reason for this was what, ultimately, became President Trump’s first major piece of Capitol-Hill-approved legislation, namely December’s Tax and Jobs Act.
The tax changes...
17 January 2018
Carillion pensions fallout: Four things DB members should think about"The high profile failure of Carillion and the fact that all 27,000 members of the group’s various defined benefit (DB) schemes will likely go into the Pension Protection Fund (PPF) will bring the viability of DB pensions into sharp focus once again," says Tom Selby, senior analyst at AJ Bell.
“With the scheme sponsor in such severe distress, many...
17 January 2018
Informa/UBM, Burberry and Pearson“The FTSE 100 opened on the back foot following downward trends in the US and Asia, signalling a shift in global sentiment as traders opt to lock in profits following the latest rally,” says AJ Bell Investment Director Russ Mould.
“ Informa and UBM fared very differently in early trading after agreeing to combine. Informa propped up the blue-chip...
16 January 2018
JD Sports, Provident Financial and IG Design“The FTSE 100 edged higher as investors kept their powder dry ahead of key UK inflation data due later this morning. Upbeat growth forecasts, as well as improved optimism over negotiating a satisfactory Brexit deal, has seen the pound rally in recent days,” says AJ Bell Investment Director Russ Mould.
“ JD Sports topped the FTSE 250 board...
15 January 2018
Six lessons investors can draw from Carillion’s collapse“While the recriminations are only just beginning, investors can immediately draw six lessons from the Carillion debacle which they will be able to apply to stocks from all geographies and sectors,” says Russ Mould, AJ Bell Investment Director.
1. Beware complexity – keep it simple“It is hard to find what operational synergy or overlap in...
15 January 2018
Carillion, GKN and Gem Diamonds“Blue-chips, which had been tipped to open on the front foot, were in negative territory in early trading as traders mulled the collapse of construction giant Carillion,” says AJ Bell Investment Director Russ Mould.
“ Carillion’s collapse followed the failure of last ditch talks with its key financial and other stakeholders, including the...