I’m not really a bank investor but when everybody is pessimistic about European banks, the alarm bells ring in my head and I’m tempted to oppose the herd. If there’s profits to be made, it is often via the ugly improving to just bad and not so much via the good improving to even better.…
Looking at the daily chart of G4S, we have a disturbingly accurate picture of the perceived fundamentals of the company, at least in term of sentiment amongst investors. The question now in the wake of today’s chart gap is whether this is the lasting turnaround the bulls have been waiting on? G4S (GFS): Broadening Triangle…
Bad news at Phase III: a potential buy on share price weakness. Following Post Brexit sterling weakness, foreign takeover prospects prevent it from being the obvious sell it might otherwise be. The sterling value of the abortive Pfizer bid at 5,500p is now, after devaluation of the pound, worth a notional 6,000p. Astra Zeneca looks,…
A dialogue between the Master and his trusty sidekick, Dr Watson, at 221B Baker Street, unpacks the most intriguing paradox in contemporary economics. Rising government debt levels should drive interest rates higher. Instead, interest rates are plunging to zero and below. As Holmes explains, our ultimate fate might be in the hands of an evil…
Are we entering a “new normal” in asset valuations? In an interesting recent piece in the Telegraph, Tom Stevenson, investment director at Fidelity Worldwide, suggested that the current trend for central bank negative interest rate policies (NIRP) that we are seeing across the globe – and their subsequent impact on rising equity values – could…
The fall in Sterling has already influenced potential and actual takeover deals, and it looks as though this will continue to be the case as the divergence between US and UK interest rates makes assets here like engineer Meggitt that much more attractive after Brexit. Meggitt (MGGT): 500p Plus Technical Target From a technical perspective…
Centrica’s cash position has improved markedly suggesting that the current prospective dividend yield at an estimated 5.3% looks sustainable. There is also the support of a significant net asset backing for the shares. For those seeking income, Centrica looks like a dividend stock to accumulate at these levels. To most of us, Centrica presents a…
It is perhaps only natural that the life of a small cap stock will see it go from zero to hero and back again several times. On this basis a company like Red Rock Resources is always worth keeping on the watchlist – a point underlined by the company’s present technical position. Red Rock Resources…
In previous articles I have emphasised the often overlooked and under-estimated, pernicious, effects of dilution on shareholders’ value in the various gold projects I’ve covered. But a higher gold price, depending on each circumstance, might produce a highly geared counterweight. So, how to balance the two? The Gold Fairy vs the Dilution Devil – who is…
Over the past decade or so the internet has transformed the way in which we consume news, with readers moving away from the traditional “deadwood” press towards digital media. The chart below shows how the circulations of some major newspapers have been hit, with only the Evening Standard seeing a rise in circulation over the…
