magazine archive

magazine archive

Talking Point

Record levels of corporate debt is not good news

Thursday 26 Sep 2019

The failure of Thomas Cook is a timely reminder of the destructive power that excessive debt can have on shareholder value. Investors have been wiped out by the strain of the package holiday firm’s £1.5bn borrowings. A decade on from the global financial crisis and UK corporate leverage is back at...

What the sharp move out of momentum into value means for your portfolio

Thursday 19 Sep 2019

On a normal, relatively quiet Monday afternoon on 9 September, some shares experienced a sharp move with no associated corporate news flow attached. As it later turned out, the same thing was happening to stocks with similar characteristics across global stock markets. Momentum was suddenly out of...

Mooted changes to ‘flawed’ inflation measure could hurt investors

Thursday 12 Sep 2019

The Chancellor has refused to review a decision on whether to scrap the controversial Retail Prices Index (RPI) measure of inflation in the short-term, despite reputable statisticians saying it is a flawed measure of price increases. However, an indication that it will be reviewed from 2025 has...

London suffers a sharp decline in the number of IPOs

Thursday 05 Sep 2019

There has been a dearth of companies floating on the UK stock market this year, perhaps understandably given Brexit-induced volatility. A mere 25 companies have floated in London so far in 2019, compared with 87 in 2018 and 106 in 2017 excluding listings classified as international offerings where...

Is a shorter trading day right for UK shares?

Thursday 29 Aug 2019

Fund managers, banks and City lobby organisations are understood to be working on ground breaking proposals that could cut stock market trading hours in the UK and across Europe, opening an hour later at 9am and closing an hour earlier at 3.30pm. The talks, which are reportedly at a very early...

What happens next with China’s currency devaluation?

Thursday 15 Aug 2019

WHAT HAS HAPPENED? The state-directed Chinese yuan currency moved through the seven per dollar threshold on 5 August for the first time since the global financial crisis in 2008. This provoked the US Treasury department into accusing Beijing of currency manipulation as the trade war continues to...

US tech firms (mostly) shine in latest quarterly earnings season

Thursday 01 Aug 2019

The FANGs and other big US tech stocks are being viewed through the lens of record high share prices by investors worried about a US stock market on the point of overheating. Yet many of the biggest and fastest-growing tech companies are still knocking the ball out of the park when it comes to...

How transparent are fund managers with short positions versus longs?

Thursday 25 Jul 2019

Fund managers are being encouraged to disclose more details about their portfolios in the name of transparency. However we’ve found that many managers are still very guarded when it comes to revealing their short positions, namely trades where they are betting the share price will fall. Some fund...

The case for and against share-based compensation

Thursday 18 Jul 2019

Following on from our discussion of the importance of corporate governance and business ethics, and how short-term reporting can distract management from focusing on long-term goals, this week we look at an issue which touches on both topics: share-based compensation for directors. Executive pay...

UK construction companies face tough time

Thursday 11 Jul 2019

A disappointing trading update from building materials firm SIG ( SHI ) on 5 July was the latest bit of bad news from the UK construction sector. It follows a series of negative data points and gloomy commentary from construction companies. In this article we look at some of the larger businesses...