magazine archive

magazine archive

Talking Point

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...

Does earnings guidance help investors?

Thursday 04 Jul 2019

Every quarter, investors and analysts wait with bated breath to hear what companies expect in terms of sales and profits for the next six to 12 months. Often it is this guidance which drives a stock way higher or way lower during earnings season, not necessarily beating or missing estimates. The...

Gold hits six-year high and sends mining share prices soaring

Thursday 27 Jun 2019

The price of gold has hit $1,426 per ounce for the first time in six years. The precious metal has been in hot demand as a result of the weakening US dollar and America’s central bank raising concerns over the health of the country’s economy. Gold typically does well when the stock market does...

The rules companies have to follow when reporting earnings

Thursday 20 Jun 2019

In order to successfully navigate the stock market it is useful to understand the rules on reporting earnings and what companies have to do if they know that their earnings are going to be either way above or way below market forecasts. London Stock Exchange ( LSE ) has a 100-page document which...

New threat to Facebook and Google matters to UK investors

Thursday 13 Jun 2019

After the S&P 500 index lost $1.6trn in value in May due to fears of a tariff-induced US economic slowdown, investors in tech stocks Amazon, Facebook and Google-owner Alphabet faced further heavy losses on the first trading day of June over fears of rising regulatory scrutiny. Alphabet shares...

What to do when one of your stocks warns on profit

Thursday 06 Jun 2019

UK companies this year issued the highest number of first quarter profit warnings since the financial crisis, says consultant E&Y. The number of warnings was up more than 20% year-on-year as companies were hit by domestic Brexit-related uncertainty as well as global growth fears. It can be...

What you need to know about the future of restaurants

Thursday 30 May 2019

Last week saw the final collapse of Jamie Oliver’s restaurant empire after a year of struggling with mounting debts and insufficient funds. As one of the administrators from KPMG observed, the casual-dining environment is ‘as tough as I’ve ever seen’. It seems a far cry from the start of the decade...

What the current oil price rally means for investors

Thursday 23 May 2019

Since the start of 2019 the global benchmark for oil prices, Brent crude, has enjoyed a rollercoaster ride. For the most part the direction of travel has been upwards from a little more than $50 per barrel to above $70 per barrel. The surge is being driven by multiple factors. These include fears...