Robert Stephens, CFA

Investor expectations make SSE a buy

Investor expectations make SSE a buy

5 mins. to read

Investor expectations can be a gift or a curse. Sometimes they allow investors to buy shares at discounted prices because the market expects a difficult period. Other times, however, they can lead to a disappointing share price performance even if a company records high earnings growth. In such a scenario, if profit growth falls below…

AO World may be the right company at the wrong time

AO World may be the right company at the wrong time

5 mins. to read

When it comes to investing, it seems as though timing is everything. Even the best stocks can have their bad days. And the ‘dogs’ of the index can enjoy periods of stunning share price growth. Therefore, finding the right stocks at the right time seems to be the difference between success and failure in investing.…

A special dividend means ITV is worth the risk

A special dividend means ITV is worth the risk

4 mins. to read

Special dividends have long been overshadowed by share buybacks. The latter has proven popular with company management due in part to its positive effect on EPS, which is often linked to bonuses, and the flexibility it brings. This contrasts with ordinary dividends, which the market expects to be repeated in future years once they have…

Why Intu Properties may be a painful contrarian ‘buy’

Why Intu Properties may be a painful contrarian ‘buy’

5 mins. to read

This week, the Halifax House Price Index said residential property prices in the UK recorded their first quarterly decline since 2012. The reasons given for this centred on affordability. House prices have apparently become too expensive given rising inflation and the squeeze on consumer spending which is beginning to be felt across the UK. While…

Why Brexit makes GoCompare a buy

Why Brexit makes GoCompare a buy

5 mins. to read

There will inevitably be winners and losers from Brexit. While it may be the latter who feature most prominently in the headlines, there are plenty of opportunities to profit from the effects of Brexit. One change brought about by the UK’s decision to leave the EU is higher inflation. Last month it moved higher than…

UK property’s recovery potential makes Bovis a buy

UK property’s recovery potential makes Bovis a buy

5 mins. to read

Since my earliest days of investing, I’ve made my biggest returns on recovery stocks. While they’re not for everyone, for investors like me who can take a long-term view and accept above-average volatility, they can prove to be highly rewarding. I’ve found the most opportunistic recovery stocks are in sectors where the long-term outlook is…

Hikma Pharmaceuticals offers defensive qualities

Hikma Pharmaceuticals offers defensive qualities

5 mins. to read

It’s always easy to spot bubbles in asset prices after they have burst. Doing so beforehand is more challenging. However, global stock markets could be severely mispriced at the moment and there may be the potential for a bursting bubble in the medium term. The main reason for this is a lack of concrete data…

HSBC’s Asian growth story offers a tonic to European risks

HSBC’s Asian growth story offers a tonic to European risks

5 mins. to read

The European banking sector made gains earlier this week following the first round of the French election. Investors seem to be upbeat about the prospects for pro-European candidate Emmanuel Macron. If he wins in the second round against Marine Le Pen, the consensus among investors seems to be that the EU and the Euro could…

Merlin offers refuge from the political rollercoaster

Merlin offers refuge from the political rollercoaster

5 mins. to read

If the last year has taught me one thing, it’s that assumptions should never be made when it comes to politics or the economy. For example, the EU referendum and US Presidential election were supposed to deliver outcomes which differed wildly from the actual results. With a general election now less than seven weeks away,…

Emotions aside, Next could be a stunning buy

Emotions aside, Next could be a stunning buy

5 mins. to read

Being able to put emotions to one side is possibly the most difficult part of investing. Accumulating knowledge and capital is within the reach of most people. However, being entirely logical while also taking subjective stances on companies is tough. It’s all too easy to allow a positive or negative experience with an industry or…