press release 26 February 2015 The Forward Look

Transcription

1 press release 26 February 2015 The Forward Look Sheridan Admans, investment research manager at The Share Centre, gives his thoughts on what to expect from companies announcing results w/c 2 March Monday Intertek (Q4 results) This is a business heavily dependent on international trade flows and as a result of weaker conditions in the commodity markets, there has been somewhat of slowdown in 2014 for the company. However, investors should note that Intertek remains fairly diversified. Increasing regulatory requirements on health & safety and quality control, along with stabilisation in the commodities market in recent months, should result in some sign of improvement in its margins. We currently list Intertek as a BUY Tuesday Regus (Q4 results) The share price has recovered well in recent months and a number of brokers have become more convinced with Regus growth story and subsequently upgraded the stock. The company has been adding office locations at a great pace over the last couple of years. Investors will therefore be asking whether this stance will continue or whether it will focus on generating improved efficiencies from its current set of assets. Investors will also want to hear about the progress of integrating recent acquisitions. There has been interest

2 as to what the founder Mark Dixon plans to do with his 34.5% stake in the company, rumours are that he may look to sell to private equity firms. We currently list Regus as a BUY Laird (Q4 results) Investors will be interested to see if the reported good growth seen in Q3, based on strong sales of smartphones and demand from customers in the automotive sectors, has continued into the final quarter of the year. The market will also focus on any comments regarding R&D spending and whether the recent increase in that area has yielded fruit for the company by way of new products. As a stock with clear dividend yield attractions for investors, there will be interest in whether the company raises the final dividend in line with its stated progressive policy, as it did with the interim dividend. We currently list Laird as a BUY Barclays (Q4 results) The banking sector has remained under the cosh from the regulator and followers of the sector will remain focussed on this subject. Revenue from Barclays all-important investment bank division has been under pressure so any comments on this alongside any updates on the progress of the groups restructuring plan, will be worth noting by investors. Recent updates have helped underpin the improved performance of the share price and investors will be hoping this trend can continue. We currently list Barclays as a HOLD Companies reporting today include: Ashtead (Q3 results) BUY, Breedon Aggregates (Q4 results) BUY and Glencore (Q4 results) BUY Wednesday Lookers (Q4 results) With overall new car sales in the UK currently at their highest level for 10 years, investors will be hoping to see a continuation of the good trading reported by Lookers in its Q3 update

3 last October. Sales in the higher-margin aftersales and parts businesses will also be of great interest, as will any comments on potential acquisitions. The fall in the price of fuel and underlying growth in the UK economy should be helping the company, which has an excellent track record of beating market expectations with its results. We currently list Lookers as a BUY Carillion (Q4 results) Investors will be keen to hear the group s outlook for the year ahead, especially with regard to the contract pipeline. Other areas of interest will be group margins and any comments regarding future government spending for infrastructure projects. However, investors should acknowledge there is a concern that the looming election may lead to possible delays over the shorter-term. We currently list Carillion as a BUY Companies reporting today include: Fresnillo (Q4 results) HOLD, International Consolidated Airlines (traffic results) HOLD, ITV (Q4 results) BUY, Melrose Industries (Q4 preliminary results) BUY, Legal & General (Q4 results) HOLD and Standard Chartered (Q4 results) HOLD Thursday Aviva (Q4 results) Investors will be looking for an update on the takeover of Friends Life Group however, with the EU watchdog not expected to rule on the merger until the 13th March there is likely to be little to report. They will also be looking for any comments on how Aviva is progressing with improving its capital adequacies, internal and external leverage and growing its digital direct business. Improvements here and the takeover of Friends Life Group are key to the continuation of the company s recovery story. We currently list Aviva as a HOLD Admiral Group (Q4 results)

4 Admiral s share price has had a healthy rise since reporting Q3 numbers in November, we suspect as anticipation to car premiums improving. As a result, Q4 numbers will be critical and watched closely by those that believe the UK car insurance market has turned a corner. Admiral has also warned that its comparison operations would not fare as well in the second half due to the market remaining highly competitive, so there will be a lot for investors to digest. We currently list Admiral Group as a SELL Companies reporting today include: EasyJet (traffic results) BUY, London Stock Exchange (Q4 results) HOLD, Schroders (Q4 results) HOLD, Aggreko (Q4 results) HOLD and Friends Life (Q4 results) HOLD Economic Diary Announcements for the w/c 2 March 2, 3, 4 March, Purchasing Managers Indices covering manufacturing, construction and services, February Markit/CIPS Last month the PMI for manufacturing stood at 53.0, which was up slightly on the month before. The PMI for construction stood at 59.1, which was a significant improvement on the month before, and the Business Activity Index tracking services rose to 57.2, which was also up on the month before. The composite PMI rose from 55.5 to 56.9 and was consistent with month on month growth in GDP of 0.5%. Hopes are high that the index improved further in February. 5 March, Monetary Policy Committee Meeting and Announcement Bank of England Although last month s meeting of the MPC saw a unanimous vote for rates staying on hold, this month s meeting may see a three way vote. One or more members may vote for a rate cut and one or two members may vote for a rate hike. However, it is highly likely that the majority will vote for rates to stay firm. 6 March, US Employment Situation, February BLS Last month saw another encouraging employment report, with US non-farm payrolls rising by 257,000. In the last three months, the US economy created a fraction over one million non-farm jobs. Did this impressive growth rate continue into February? Other economic announcements include: 1 March Growth Indicator for February CBI. 2 March

5 PMIs for manufacturing, February: Eurozone Markit; US ISM and Markit; China official and Markit; and across much of the rest of the world, mainly from Markit. 4 March PMIs for services, February: Eurozone Markit; US ISM and Markit; China official and Markit; and across much of the rest of the world mainly from Markit. Economic Review: March 2015 ONS. US Beige Book FED. 5 March Dodd-Frank Act Stress Test Results FED ---Ends--- Note to editors: Please note that the dates stated in this article are indicative and could be subject to change which is beyond our control. For further information please contact: The Share Centre Stephanie Reynolds PR Manager [email protected] Sophie Hobart PR Assistant [email protected] Teamspirit PR Adam Smith [email protected] Rachel Finlay [email protected] Veronica Chu [email protected] To view all our press releases and more from our investment advisers please go to blog.share.com 2015 Self Select ISA Provider of the Year - ADVFN International Financial Awards Best Online Stockbroker - ADVFN International Financial Awards 2014 Best Stockbroker for Customer Service Financial Times and Investors Chronicle Best Online Stockbroker Personal Finance Awards Best ISA Provider Shares Magazine Highest Overall Client Satisfaction award - Investment Trends Best Customer Service Investment Trends Best Stockbroker MoneyAM Best Customer Service - MoneyAM 2013 Online Stockbroker of the Year - Financial Times and Investors Chronicle Execution-only Stockbroker of the year Financial Times and Investors Chronicle Best Online Stockbroker Personal Finance Awards 2012

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