Friday Email: 09 January 2015
Every Friday morning our lead analyst Mark Riding sends out his weekly run-down and upcoming events in the investor calendar, like this one:
Quite a volatile market at the moment with the FTSE 100 having started the week at 6528 falling to 6330 and then closing on Thursday at 6569. There has been no corporate activity in the past week in terms of declared results or dividends, but we did have the market reacting very well to Tesco's trading update and the news that they had cut their final dividend. It looks too early to get excited about Tesco to me. They have put thousands of people onto the shop floor and are barely maintaining their market share and basically, they cannot afford to pay a dividend to shareholders. I don't have a strong view either way on Tesco at this price, but I am convinced that they have a mountain to climb to regain their former glories.
The week ahead is similar to the past week in that there is little in the way of reporting, but there are a number of trading statements. One company that does report its interims on Wednesday is one of our small cap picks for the year, Tungstun, so it will be interesting to see how they go.
We publlshed our Small cap picks for the year earlier this week and Globo seems to have hit the ground running with an 11% rise yesterday. It would look cheap at twice the price and the shares should recover to a sensible multiple in time. I have said it before with UK tech stocks, but if Globo were quoted in the U.S, it would command a much much higher rating than it gets over here. All of our small cap picks for the year and our 5 picks from last year will be published in Stockomendation next week. This is a new and exciting website that we are teaming up with, hopefully on a number of fronts in 2015. As always, members will be kept up to date with developments.
The Model portfolio was also produced and the rationale for each pick will be published in the next few days, as will our latest piece of research which is almost complete.
2015 has started in a volatile manner and I'm afraid I see most of the year ahead being volatile and tricky, but this should present plenty of trading and investment opportunities.
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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Read next: 02 January 2015
2014 is over and the FTSE 100 closed the year down on last year. Not something that was expected, but we did know from the outset that this was going to be a tough year and so it proved to be. It does not get any easier next year and the conundrum of apparently good growth in the US and continued, albeit much slower growth in China against falling commodities prices will need to play out. Excess capacity in the commodities space will surely have to be removed in the coming year as high cost producers will go to the wall in ever greater numbers until we have equilibrium of supply and demand to stabilise prices.
