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Friday Email: 10 June 2016

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

The market remains within a tight range as we pointed out last Friday and will end this week little changed on where we were last week. 

The past week was very quiet in terms of corporate earnings, but the dividend declarations that we did see were pretty good with Avesco (25%), Alternative Networks (13%), Workspace Group (25%) VP (14%) B.P. Marsh & Partners (24%) and WYG (50%) all posting double digit dividend increases.

The week ahead remains quiet although we will see final results from Ashtead which are expected to be at the top end of analysts expectations. I remain a big fan of the stock because of its amazing track record and expect another bumper dividend increase. However in the past 12 months they have been downgraded by Bank of America Meryll Lynch, HSBC and Credit Suisse, which saw the shares hit a low of 769p at one point. I like the stock because it is a massive dollar earner and you can at least have some confidence ahead of the June 23rd vote. We shall see what happens on Tuesday. The share price has recovered from the low, but still trades on only 10.9x next years earnings. This suggests that the downgraders are correct, because a company with that track record should trade on a much higher multiple, so the outlook statement will be looked at more closely than the results themselves.

The coundown to the vote is really on now, so we can expect more polls and more squabbles amongst the politicians. I'm not sure how long it will take for the vote to be finalised, but one thing is for sure; trading in the markets on Friday 24th June will be very interesting indeed.

 

This email was originally sent on Friday 10 June 2016

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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