23 March 2018
Next keeps a cool head as many of its rivals and peers start to flounder“ Next’s 54-page-long results release is a whopper but it is what is missing from the statement that matters more than what is in it – there is no profit warning, there is no dividend cut and there is no sense of panic,” says AJ Bell Investment Director Russ Mould.
“Instead, investors are getting a clear analysis of the challenges which face the...
23 March 2018
Market rout on trade war fears, Glaxo pulls out of Pfizer bid, Indivior’s drug disaster and Aviva’s preference share climbdown“A rough week for the markets sees the FTSE 100 on course for a 3.6% fall at 6,902.43, reaching its lowest level since December 2016 as fears of a trade war between the US and China ratchet up,” says AJ Bell Investment Director Russ Mould.
GlaxoSmithKline“After Reckitt Benckiser pulled out of a bid for Pfizer’s consumer healthcare business on...
22 March 2018
How to test the foundations of the property sectorHe is unlikely to have appreciated it, or cared, at the time, but Mark Twain’s advice to “Buy land, they aren’t making it any more” has long since formed the basis of the investment case for UK commercial property, either via quoted stocks or dedicated funds.
Whether property is right for an investor’s portfolio will depend upon their overall...
22 March 2018
Reckitt acquisition relief, Ted Baker caught up in retail gloom and M&C Saatchi bucks the advertising agency trend“The FTSE 100 continues to fall on Thursday, down 0.2% to 7,025 amid weakness in insurers and tobacco stocks and after the US Federal Reserve raised interest rates on Wednesday night,” says AJ Bell Investment Director Russ Mould.
Reckitt Benckiser“Consumer goods business Reckitt Benckiser is the top FTSE 100 riser as it abandons plans to buy the...
21 March 2018
Kingfisher’s cash conundrum, second warning for Moss Bros and Softcat’s worrying language“The FTSE 100 takes a small step back on Wednesday, falling 0.3% to 7,037 on the back of weakness in miners and banks,” says AJ Bell Investment Director Russ Mould.
Kingfisher“The retail sector is truly going through one of its worst periods in recent memory. B&Q may be one of Britain’s best known DIY chains but brand strength doesn’t always...
20 March 2018
FTSE in a better mood, Ocado’s shrinking basket size and Bellway’s future risks“The UK stock market bounces back on Tuesday with the FTSE 100 rising 0.3% to 7,064,” says AJ Bell Investment Director Russ Mould.
Ocado“Forget the snow impacting Ocado’s earnings; the more interesting fact is the reduction in the number of items per basket.
“A reduced average order size is bad news for companies like Ocado. It isn’t really cost...
19 March 2018
FTSE dealt a blow, activist targets Barclays, major setback for Micro Focus and Accrol kicks up another stink“The FTSE 100 has been dealt a blow at the start of the new trading week, falling more than 1% to 7,090. Weakness in miners and utilities is principally to blame,” says AJ Bell Investment Director Russ Mould.
Barclays“Banking group Barclays has topped the FTSE 100 leader board this morning on news activist investor Sherborne has taken a 5%-plus...
16 March 2018
FTSE 100’s poor show, Berkeley hits a wall and gloomier outlook for JD Wetherspoon“It’s been one step forward, two steps back for the UK stock market this week. The FTSE 100 is on track to end the five-day trading session more than 1% down, making it one of the worst performing major stock market indices in the world,” says AJ Bell Investment Director Russ Mould.
Berkeley Group“The chairman of London-focused housebuilder...
15 March 2018
Four indicators suggest markets may be gathering for an upwards move“The FTSE 100 looks to be stabilising in the wake of February’s sudden sell-off but the index is still trading some 7% below the all-time closing high of 7,779 reached two months ago. It is being helped by a slight retreat in Government bond yields, where an increase had threatened to suck some cash away from stocks, and especially sterling, whose...
15 March 2018
How to use moving averages to pin down the FTSE 100In capital, local currency terms, the UK is the worst performing country among the 23 nations classified by the MSCI as ‘developed’ markets in 2018 to date.
The UK is the worst performing developed market so far in 2018 Capital return, local currency Last 12 months 2018 to date * Hong Kong 25.6% Hong Kong 5.6% Austria 20.6% Singapore 4.4% Norway...
15 March 2018
Savills troubles property sector, Cineworld’s new chapter and profit warning from PZ Cussons“While the FTSE 100 nudges ahead 0.1% to 7,141 on Thursday, overall the UK stock market remains stuck in a rut since February’s stock market sell-off,” says AJ Bell Investment Director Russ Mould.
Savills“The real estate sector is weak this morning as major player Savills points to market uncertainty and a ‘tempering’ in strong transaction volumes...
14 March 2018
Muted response to Morrison’s figures suggests food retailers have yet to convince the bears“The combination of rising sales, a healthy jump in pre-tax profits, lower debt, an increased ordinary dividend and even a special dividend of 4p sounds very appealing but investors are still declining to stock up on shares in Morrison,” says AJ Bell Investment Director Russ Mould.
“One reason for this is that operating profit fell year-on-year...
14 March 2018
Prudential’s amicable divorce, there is still life in Dignity and Balfour fights back“Insurers and miners help to lift the FTSE 100 on Wednesday with the blue chip index rising 0.2% to 7,153,” says AJ Bell Investment Director Russ Mould.
Prudential“They say breaking up is the hardest thing to do, yet Prudential doesn’t seem to have any qualms about splitting its business into two. There has been speculation for years that the...
13 March 2018
The real reason why Fevertree shares are down, the FTSE takes a step back and further problems for Greencore“The FTSE takes a step back on Tuesday, trading five points lower at 7,209. Gains in the oil and mining sectors are offset by losses among consumer goods companies and insurers,” says AJ Bell Investment Director Russ Mould.
Fevertree Drinks“Can you imagine drinking gin without tonic? The same goes for Fevertree Drinks and earnings upgrades. The...
12 March 2018
FTSE holds firm, Melrose’s final attempt to buy GKN and Polymetal’s countless moving parts“The UK stock market starts the week on a quiet note as the FTSE 100 is flat at 7,227,” says Russ Mould, investment director at AJ Bell.
Melrose“With just 5.76% of GKN shareholders acquiescing to its initial approach and with the 29 March deadline for acceptances fast approaching, Melrose has upped its cash and shares bid from £7.4bn to £8.1bn.
“...
9 March 2018
FTSE on track for strong week, looking beyond SIG’s headlines and GVC issues reassuring numbers“Although The FTSE 100 doesn’t seem to want to move on Friday morning, trading flat at 7,196, it is still on track to finish the week up nearly 2%. That would be its best weekly performance since early February,” says AJ Bell Investment Director Russ Mould..
SIG“Results from specialist building products firm SIG are a lesson in not just focusing...
8 March 2018
Four reasons why financial markets may not want to see tariffsWhen Donald Trump was running for President, financial markets were wary of him, not least because of his calls for tariffs and protectionist policies, and it now looks like those fears may be realised, depending upon how America’s trading partners respond.
Such concerns could start to counter the optimism generated by the President’s drive for tax...
8 March 2018
Domino’s health warning, Countrywide flop and G4S fighting negative sentiment“The FTSE 100 sits on its hands on Thursday, staying flat at 7,157,” says AJ Bell Investment Director Russ Mould.
Domino's Pizza“Full year results from Domino’s Pizza look impressive at first glance with UK system sales breaking through the £1bn mark for the first time and decent growth in pre-tax profit and dividends.
“Yet under the bonnet...
6 March 2018
FTSE bounces back, Just Eat setback, Smurfit Kappa bid brings excitement to the packaging sector and profits down at Aggreko“The UK stock market bounces back with a near -1% rise on Tuesday, trading at 7,180 in the first hour of the market being open. Miners, utility companies, pharma firms and financial services groups all lead the charge,” says AJ Bell Investment Director Russ Mould.
Just Eat“For the second time in a little over six months online takeaway platform...
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...
