As Sports Direct reports full year results Sheridan Admans, investment research analyst at The Share Centre, explains why he recommends investors ‘buy’ the stock. 

Investors will be pleased to see Sports Direct report strong full year results this morning, with annual profits before tax up 15.6% and figures including underlying EBITDA and underlying diluted earnings per share coming in above consensus estimates. As the company announced it will still not be paying a dividend it remains a stock for the growth seeking investor.

The share price has raced ahead over the past two years on the back of impressive sales and profit growth. We recommend Sports Direct as a ‘buy’ for investors as we become more confident in the improving economic outlook both in the UK and Europe, aiding the company’s strategy to expand. Momentum and expansion should support the share price and we recommend investors drip feed into the stock on dips.

All information given including prices, yields and our opinion is correct at the time of publication.  Our opinions on investments can change at any time and for our latest view please go to www.share.com.  To understand how our Advice team arrive at their views please read our Investment Research Policy.

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The highest number of trades completed at The Share Centre yesterday.

Top Customer Buys – 16 July

Quindell
Rare Earth Minerals
Mosman Oil And Gas
GlaxoSmithKline
Barclays
Sefton Resources
Range Resources
Plus500
Booker Group
Tesco

Top Customer Sells – 16 July

Quindell
Rare Earth Minerals
Rio Tinto
Mosman Oil And Gas
Barclays
Glencore
Verizon Communications
Lloyds Banking Group
Gulf Keystone Petroleum
Earthport

Ratio of buys to sells – 55:45

Top trades should not be taken as a recommendation to buy or sell and it is not intended as advice.  Top trades is only an indication of the buying and selling movements from some of The Share Centre.

The post Top of the stocks – 16 July appeared first on The Share Centre Blog.

The Share Centre’s Customer top buys from the last 7 days

• Oilex – The group have announced sales agreements, financing and drilling update
• Rare Earth – Drilling results and stake in joint venture
• Roxi Petroleum – Operational update excites investors
• Mosman – Recent drilling update confirms potential for oil.
• Monitise – Recent fall in share price attracts bottom fishers

The Share Centre’s top tips for this week

1. National Grid (Lower risk) Despite a rise in the share price year to date we continue to suggest lower risk income seekers build a holding in the group. The agreement with its regulator last year was seen as important. Results in May stated that it expects to deliver good organic growth and healthy returns, which should support sustainable dividend growth.

2. Prudential (Medium risk) Despite a significant rise in the share price over the last two years, the stock could continue to reward. The company has set new targets over the next four years. The recent first quarter update was positive, with growth in business and profits across its three main regions.

3.  James Fisher (Medium risk)   Marine support services group, perhaps best known for its submarine rescue unit. The group have been winning a number of contracts in its core North Sea area and internationally. It provides a range of niche services. The share price like many mid-caps has fallen by around 15% recently, providing investors with a buying opportunity.

4. Howden Joinery (Medium risk) The share price has suffered over the last three months giving investors a more attractive entry point.  The improvement in the housing market, allied to the gradual improvement in the UK economy and consumer confidence should benefit Howden. Since moving away from the MFI brand, the company has been winning market share from competitors and is continuing to increase its earnings.

5. Randgold (Higher risk) – The gold price has recently hit a three month high, Investors looking for a play on this trend could consider this FTSE 100 company. Its main operations are located in Mali, which has had political tensions, hence the higher risk.  The group is targeting 1.2 million ounces in annual gold production by the end of 2015.

All information given including prices, yields and our opinion is correct at the time of publication.  Our opinions on investments can change at any time and for our latest view please go to www.share.com.  To understand how our Advice team arrive at their views please read our Investment Research Policy.

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Sheridan Admans, investment research manager at The Share Centre, gives his thoughts on what to expect from companies announcing results w/c 28 July 2014

Monday

National Grid (interim management statement)
We do not expect much in the way of excitement from the group. Investors will be anticipating the normal statement from a utility for trading to be in line with expectations in National Grid’s first update since its results in May. Investors should note any comments from management regarding its US operations.

We currently list National Grid as a BUY

Companies also reporting today include: Aberdeen Asset Management (Q3 results) – HOLD, and Reckitt Benckiser #(Q2 results) – HOLD

Tuesday

BP (Q2 results)
BP’s first quarter production numbers were marginally ahead of expectations and investors will be hoping for more of the same. The Ukraine/Russia situation lifted energy prices compared to the first quarter, so this should help with average realised oil prices. However, the group’s 20% ownership of Russian oil giant Rosneft could result in problems down the line if heftier sanctions are imposed on the country, following the recent shooting down of the Malaysian airline. Investors will therefore keep a close eye on any comments from management in regards to its Russian stake.

We currently list BP as a BUY

St James’s Place (interim management statement)
The group has been going from strength to strength and investors will be hoping for more of the same in regards to increasing funds under management, inflows of fresh money and dividend growth. Other areas to note will be any news of its proposed expansion into Asia and any early signs of benefits from changes made in this year’s budget to ISAs and pensions.

We currently list St James Place as a BUY

Companies also reporting today include: Hutchison China MediTech (Q2 results) – HOLD, Next (Q2 trading statement) – HOLD and GKN (Q2 results) – BUY

Wednesday

Barclays (Q2 results)
The sector has once again been under pressure this year, with Barclays’ share price suffering more than most. As usual the market will be concentrating on the performance of Barclays Capital. Investors could see further updates on its recently announced strategic review, alongside updates on regulatory issues and the resulting possible lawsuits. The market will also be focussing on the group’s outlook.

We currently list Barclays as a HOLD

Companies also reporting today include: 3i (interim management statement) – HOLD, ITV (Q2 results) – BUY, Antofagasta (Q2 results) – HOLD, Shire (Q2 results) – HOLD, Tullow Oil (Q2 results) – BUY, Vedanta Resources (Q1 results) – BUY, British American Tobacco (Q2 results) – HOLD and Compass (interim management statement) – HOLD

Thursday

Rolls Royce (Q2 results)
The update earlier this year disappointed the market after the company warned of no growth in sales for 2014. However, there is an expectation of a return to growth in 2015 and investors will look to see if the management still believe this. The slowdown in its defence businesses is believed to be one of the main contributors to the group’s decline. However, the majority of defence cutbacks should already have happened and therefore the future for the industry may begin to pick up. The key to Rolls Royce is the civil aerospace industry and this is where it is still performing very well. As well as sales numbers, investors will keep an eye out for the size of the order backlog and the mix between original equipment and after sales contracts.

We currently list Rolls Royce as a BUY

AstraZeneca (Q2 results)
GlaxoSmithKline disappointed the market with its update this week, next week it’s AstraZeneca’s turn. We will more than likely see generic competition continue to hurt the group’s revenue and profitability. However, with it rejecting Pfizer’s takeover approach earlier this year, investors will expect to see convincing comments that Astra can go it alone in developing their R&D assets. Updates on the progress of R&D projects will be sought after, as will the progress of its cost cutting programme.

We currently list AstraZeneca as a HOLD

Companies also reporting today include: Schroders (Q2 results) – HOLD, Weir Group (Q2 results) – HOLD, Centrica (Q2 results) – HOLD, Lloyds Banking (Q2 results) – HOLD, BAE Systems (Q2 results) – HOLD, Spirent Communications (Q2 results) – BUY, BG Group (Q2 results) – BUY, Royal Dutch Shell (Q2 results) – BUY, BT (Q1 results) – BUY and Diageo (Q4 results) – BUY

Friday

Smith & Nephew (Q2 results)
The company has been an exceptional performer of the last couple of years with excellent assets and growth prospects leaving it a target for potential acquisitions. There has been some interest from US firms but nothing has materialised just yet and investors will lookout for possible commentary from management on this matter.

We currently list Smith & Nephew as a HOLD

IMI (Q2 results)
IMI is a company that is currently having a strategic review as a result of a new CEO. Followers of the company will be nervous about the effects of currency on its profits and the potential for pressure on its margins. The group was forecasting an improvement in the second half so an update and confirmation of this trend on the outlook will be important to investors.

We currently list IMI as a HOLD

Companies also reporting today include: Royal Bank of Scotland (Q2 results) – SELL, Rexam (Q2 results) – HOLD, International Consolidated Airlines (Q2 results) – HOLD and William Hill (Q2 results) – BUY

Economic Diary

Announcements for the w/c 28 July

29 July, US consumer confidence, July

Conference Board; 30 July, US Gross Domestic Product (Advance), Q2 2014 – BEA; and US Employment Situation, July – BLS
In Q1 US GDP contracted at an annualised rate of 2.9 per cent. However, it is thought this was largely down to the exceptionally cold winter in the US and that Q2 will see a significant recovery. The latest PMIs are consistent with annualised growth of 3.0 per cent. Meanwhile, last month’s consumer confidence index from the Conference Board hit a six year high, and June saw 288,000 increase in non-farm payrolls.

1 August

Purchasing Managers’ Index for UK manufacturing – Markit/CIPS
Last month the manufacturing PMI rose to 57.0, which was the second highest reading for the index in 40 months. It is worth nothing, however, that recent data from the ONS on UK manufacturing in May was less positive than the corresponding PMI had suggested.

Other economic announcements include:

29 July

• Insolvency Statistics, Q2, 2014 – ONS

30 July

• FOMC Meeting – FED

31 July

• Help to Buy (equity loan) scheme and Help to Buy: NewBuy statistics, April 2013 to June 2014 – ONS
• Economic Review, August 2014 – ONS
• Flash estimate Euro area inflation, July – Eurostat
• EU unemployment, June – Eurostat

1 August

• PMIs covering manufacturing in the euro area – HSBC, US – ISM and Markit and China HSBC/Markit.

All information given including prices, yields and our opinion is correct at the time of publication.  Our opinions on investments can change at any time and for our latest view please go to www.share.com.  To understand how our Advice team arrive at their views please read our Investment Research Policy.

The post The forward look, w/c 28 July appeared first on The Share Centre Blog.

The Share Centre’s Customer top buys from the last 7 days

• Oilex – The group have announced sales agreements, financing and drilling update.
• Rare Earth – Drilling results and stake in joint venture.
• Glaxo – Profit warning leads to significant fall in share price.
• Mosman – Recent drilling update confirms potential for oil, along with news on acquisition.
• Tesco – Share price falls to a ten year low, which attracts some bottom fishers.

The Share Centre’s top tips for this week

1. National Grid (Lower risk) Despite a rise in the share price year to date we continue to suggest lower risk income seekers build a holding in the group. The agreement with its regulator last year was seen as important. Results in May stated that it expects to deliver good organic growth and healthy returns, which should support sustainable dividend growth.

2. Prudential (Medium risk) Despite a significant rise in the share price over the last two years, the stock could continue to reward. The company has set new targets over the next four years. The recent first quarter update was positive, with growth in business and profits across its three main regions.

3.  James Fisher (Medium risk)   Marine support services group, perhaps best known for its submarine rescue unit. The group have been winning a number of contracts in its core North Sea area and internationally. It provides a range of niche services. The share price like many mid-caps has fallen by around 15% recently, providing investors with a buying opportunity.

4. Inmarsat (Medium risk) The satellite operator recently gained exposure from trying to track the missing Malaysia airline. Future growth opportunities for investors to focus on could come from new satellites that will be launched and an Air to Ground system that will give airline passengers fast internet access.

5. Breedon Aggregates (Higher risk) – The share price like many smaller companies has fallen back over the last three months, potentially giving a more attractive entry point. They are the UK’s largest independent aggregates group and have benefitted from the improving house market. Recent results were viewed as being very solid and management were confident that further progress would be made in the second half.

All information given including prices, yields and our opinion is correct at the time of publication.  Our opinions on investments can change at any time and for our latest view please go to www.share.com.  To understand how our Advice team arrive at their views please read our Investment Research Policy.

The post Investment Insights, 28 July- 1 August appeared first on The Share Centre Blog.

Helal Miah, investment research analyst at The Share Centre, advises investors following Afren’s announcement this morning.

“In light of this morning’s announcement that Afren’s chief executive and chief operating officer have been suspended we have removed the oil exploration company from our ‘buy’ list with immediate effect.

“Operations and production should not be affected; however the publication of its half year results next week will be postponed. Until the situation becomes clearer we recommend new investors avoid the stock and any existing investors who are not prepared to ride out the volatility should sell.”

All information given including prices, yields and our opinion is correct at the time of publication.  Our opinions on investments can change at any time and for our latest view please go to www.share.com.  To understand how our Advice team arrive at their views please read our Investment Research Policy.

The post The Share Centre removes Afren from its buy list appeared first on The Share Centre Blog.

• Q2 earnings more than double compared to last year

• Royal Dutch Shell offers stable cash flows and attractive dividend

• The Share Centre recommends Royal Dutch Shell as a ‘buy’ for investors

As Royal Dutch Shell updates the market Helal Miah, investment research analyst at The Share Centre, explains why he recommends investors ‘buy’ the stock.

“Royal Dutch Shell announced this morning that its second-quarter earnings more than doubled from a year earlier, significantly beating expectations. These numbers were helped by higher liquids production volumes and prices, a strengthening Australian dollar and a deferred tax liability. Alongside this, new finds have been made in the Gulf of Mexico and Malaysia and there is a share buyback program which should support the share price.

“We recommend the company as a medium risk ‘buy’ for investors as the group’s management have prioritised streamlining the operations through asset disposals, capital efficiency, along with delivering on expansion projects. We believe Royal Dutch Shell still represents a core holding for most portfolios due to the relatively stable cash flows and the attractive dividend income it generates.”

All information given including prices, yields and our opinion is correct at the time of publication.  Our opinions on investments can change at any time and for our latest view please go to www.share.com.  To understand how our Advice team arrive at their views please read our Investment Research Policy.

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The Share Centre’s Customer top buys from the last 7 days

• Afren – News of suspension of CEO and COO leads to significant fall in share price.
• Compass – Third quarter trading update attracts investors.
• Glaxo – Vague bid rumours on back of recent profit warning and significant fall in share price.
• Lloyds  - Interim results focusses the attention of investors
• Tesco – Share price falls to a ten year low, which attracts some bottom fishers.

The Share Centre’s top tips for this week

1. National Grid (Lower risk) Despite a rise in the share price year to date we continue to suggest lower risk income seekers build a holding in the group. The agreement with its regulator last year was seen as important. Results in May stated that it expects to deliver good organic growth and healthy returns, which should support sustainable dividend growth.

2. Prudential (Medium risk) Despite a significant rise in the share price over the last 2 years, the stock could continue to reward. The company has set new targets over the next 4 years. The recent first quarter update was positive, with growth in business and profits across its 3 main regions.

3. James Fisher (Medium risk)   Marine support services group, perhaps best known for its submarine rescue unit. The group have been winning a number of contracts in its core North Sea area and internationally. It provides a range of niche services. The share price like many mid-caps has fallen by around 15% recently, providing investors with a buying opportunity.

4. BHP Billiton  (Medium risk) They are an international mining company. The company’s principle business lines are mineral exploration and production, including coal, iron ore, gold, titanium, ferroalloys, nickel and copper, as well as petroleum exploration and production. The stock has income attractions as well as being geared to global economic growth, especially in China. A recent production update was viewed positively by the market

5. Breedon Aggregates (Higher risk) – The share price like many smaller companies has fallen back over the last three months, potentially giving a more attractive entry point. They are the UK’s largest independent aggregates group and have benefitted from the improving house market. Recent results were viewed as being very solid and management were confident that further progress would be made in the second half. Directors have also been buying shares

All information given including prices, yields and our opinion is correct at the time of publication.  Our opinions on investments can change at any time and for our latest view please go to www.share.com.  To understand how our Advice team arrive at their views please read our Investment Research Policy.

The post Investment insights, 4 – 8 August appeared first on The Share Centre Blog.

The Share Centre’s Customer top buys from the last 7 days

• Vodafone: downgrade of Vodafone’s debt by Fitch Ratings Agency.
• Royal Mail: Analyst downgrade based on increased competition.
• United Utilities: Regulatory pressure remains on the water companies.
• British Land: Announces new letting contract and receives a broker upgrade.
• GSK: Corruption scandal in China and poor recent trading update still pressuring to the downside.

 The Share Centre’s top tips for this week

1. National Grid (Lower risk) Despite a rise in the share price year to date we continue to suggest lower risk income seekers build a holding in the group. The agreement with its regulator last year was seen as important. Results in May stated that it expects to deliver good organic growth and healthy returns, which should support sustainable dividend growth.

2. Prudential (Medium risk) Despite a significant rise in the share price over the last two years, the stock could continue to reward. The company has set new targets over the next four years. The recent first quarter update was positive, with growth in business and profits across its three main regions.

3. James Fisher (Medium risk)   Marine support services group, perhaps best known for its submarine rescue unit. The group have been winning a number of contracts in its core North Sea area and internationally. It provides a range of niche services. The share price like many mid-caps has fallen by around 15% recently, providing investors with a buying opportunity.

4. BHP Billiton (Medium risk) An international mining company. The company’s principle business lines are mineral exploration and production, including coal, iron ore, gold, titanium, ferroalloys, nickel and copper, as well as petroleum exploration and production. The stock has income attractions as well as being geared to global economic growth, especially in China. A recent production update was viewed positively by the market.

5. Breedon Aggregates (Higher risk) – The share price like many smaller companies has fallen back over the last three months, potentially giving a more attractive entry point. They are the UK’s largest independent aggregates group and have benefitted from the improving house market. Recent results were viewed as being very solid and management were confident that further progress would be made in the second half. Directors have also been buying shares.

All information given including prices, yields and our opinion is correct at the time of publication.  Our opinions on investments can change at any time and for our latest view please go to www.share.com.  To understand how our Advice team arrive at their views please read our Investment Research Policy.

The post Investment insights, 11 August appeared first on The Share Centre Blog.

The Share Centre’s Customer top buys from the last 7 days

National Grid – No obvious reason other than investors looking for defensive income shares.
Quindell – Results lead to more volatility in share price.
Glaxo – Vague bid rumours on back of recent profit warning and significant fall in share price. There was also news of FDA approval for a drug.
BHP Billiton – Company results along with restructuring news
Imperial Tobacco – Trading update

The Share Centre’s top tips for this week

1. National Grid (Lower risk) Despite a rise in the share price year to date we continue to suggest lower risk income seekers build a holding in the group. The agreement with its regulator last year was seen as important. Results in May stated that it expects to deliver good organic growth and healthy returns, which should support sustainable dividend growth.

2. Prudential (Medium risk) Despite a significant rise in the share price over the last two years, the stock could continue to reward. The company has set new targets over the next four years. The recent first quarter update was positive, with growth in business and profits across its three main regions.

3. James Fisher (Medium risk) Marine support services group, perhaps best known for its submarine rescue unit. The group have been winning a number of contracts in its core North Sea area and internationally. It provides a range of niche services. The results this week were solid and there was news of a further contract win for its Divex subsidiary.

4. Taylor Wimpey (Medium risk) A recent addition to our buy list on the back of an encouraging set of results, which highlighted the group’s intension of returning more cash to investors by way of special dividends. The government is keen to boost the number of new house builds and the sector as a whole has been a beneficiary.

5. Incadea (Higher risk) – The group’s promise that new contracts would be won in the future is starting to come true, with wins announced in both July and August. Like many emerging software companies their product has the advantage of improving performance and efficiency, in this case for car dealerships. Research and development is based in Germany, which we view as a potential plus point.

All information given including prices, yields and our opinion is correct at the time of publication.  Our opinions on investments can change at any time and for our latest view please go to www.share.com.  To understand how our Advice team arrive at their views please read our Investment Research Policy.

The post Investment insights, 27 August appeared first on The Share Centre Blog.