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Friday Email: 07 November 2014

Every Friday morning our lead analyst Mark Riding sends out his weekly run-down and upcoming events in the investor calendar, like this one:

It was good to see Pace hit 350p on Wednesday just a few weeks after our write up. (at 300p) The market continues to be really difficult and there are still some really attractive opportunities out there. The price of Cathay International (CTI) is confusing considering what they have achieved over the past 5 years and it's main asset, Lansen pharmaceuticals has risen 25% this year on the Hong Kong Stock exchange. With a rising dollar, its value goes up even more. Afren is another company that has suffered very badly as a result of (alleged) wrongdoings by senior directors of the group. To trade at a 60% discount to net asset value as of 30/09/14 is plainly ridiculous. The oil price is falling but they are hedged so free cash flow is intact at roughly half their market capitalisation. Does not seem right to me.

The past week was fairly uneventful from a dividend perspective with lots of small increases. The biggest increase of the week came from the highly reliable Imperial Tobacco at its usual 10%. We have pencilled in the same for the next two years.

The week ahead has results from Lonmin, Aveva, Fenner, BTG, Land Securities, Vodafone, Burberry, Sainsbury, SSE, WS Atkins, Great Portland Estates, London Stock Exchange, SABMiller and Vedanta.

The market appears to be taking on a more bullish tone, particularly in the US. Great care still needs to be taken and value investing would appear to be the safest way forward. There are plenty of stocks out there with low PE's and decent yields.

This email was originally sent on Friday 07 November 2014

The Friday email is delivered to over 20,000 subscriber’s every week, and remains a widely read run-down of recent events and what investors can expect in the week ahead written by our chief analyst Mark Riding.

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