Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
“UK markets continued to be volatile with the FTSE 100 falling 0.3% to 7,286 with utility companies among the biggest contributors to the index’s decline. “It was a different story in Japan where the Nikkei jumped 2.1% after China said it would hold new trade talks with the US next month. The top riser was metals producer Toho Zinc Co, up 8.5%,” says Russ Mould, Investment Director at AJ Bell.
BooHoo
“It is very encouraging to see online fashion retailer BooHoo raise guidance for the pace of sales growth. While it doesn’t match the levels seen in the previous financial year, it does provide some reassurance that BooHoo isn’t struggling like much of its peer group.
“Equally positive is the fact that margins aren’t being squeezed which suggests it isn’t slashing prices simply to shift stock and push up sales.
“The company is clearly on a roll and offering customers a wide range of products which are seemingly ‘on trend’ and at the right pricing point.
“Shareholders are lapping up the benefits of this successful business model. BooHoo’s shares are now at a new record high and it is comfortably the biggest stock on the AIM market at £3.3 billion; that is now significantly ahead of fashion rival ASOS’s £2 billion valuation.”
Future
“Hot on the heels of qualifying for the FTSE 250 in the summer, media group Future has not only issued a very bullish trading update but it has also (so far) survived a bear raid from research group Stockviews.
“The TechRadar and Classic Rock owner came under fire from Stockviews earlier this year amid criticisms that market expectations were unrealistic, earnings quality was poor due to recurring charges, management representation of free cash flow was ‘at odds with reality’ and remuneration policy prompted ‘aggressive acquisitions’ to hit earnings targets.
“Bear raids tend to involve a third party publishing a very negative report on a stock following detailed analysis of the reports and accounts. The authors typically stand to profit if the share price falls.
“Future now says trading is stronger than previous expectations, with notable gains in the US and help from weak sterling, and Stockviews is noticeably quiet following its initial criticism of the group.
“Time will tell if Stockviews is correct or not, but so far the market has shrugged off its accusations and the share price keeps storming ahead.”
These articles are for information purposes only and are not a personal recommendation or advice.