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20 June 2019

Redmayne Bentley’s Top Trades

KIER GROUP
Index: FTSE 250
Sector: Construction & Materials
Market capitalisation: £198.92m
 
Kier Group, one of British construction’s “Big Three” in general infrastructure, has witnessed a significant sell-off in recent weeks. After an accounting error seriously underestimated its debt levels, and following a recent profit warning, the group has decided to sell up to 20% of the business; this includes the profitable housebuilding and property development divisions. Additionally, 1,200 redundancies are planned, focusing on the company’s head office in Bedfordshire, to further cut costs, while dividend payments are suspended. Shares in the company have fallen by about 80% since the end of last year.
 
ASTON MARTIN LAGONDA
Index: FTSE 250
Sector: Automobiles
Market capitalisation: £2,412.27m
 
Newly-listed Aston Martin Lagonda shook the car industry last week with the announcement of its very first 4x4, the DBX. Production begins next spring, with a capacity of 5,000 per year from 2021. The DBX will allow Aston Martin to compete with their luxury rivals, the Lamborghini Urus and Bentley Bentayga. Valued at £19 on its debut last year, the shares lost 25% of their value in a month and halved by spring after the company reported larger-than-expected losses of £68m. Aston Martin’s shares took a hit last week after Sky News reported that investors planned to oppose its pay policy. Notwithstanding this, overall, shares have rallied over the past month, increasing by over 18%.
 
IMPERIAL BRANDS
Index: FTSE 100
Sector: Tobacco
Market capitalisation: £18,111.03m
 
The tobacco giant has recently suffered dismally; its stock peaked at just over 3,000p in the past year, but now trades at 1,914p. Although traditional tobacco volumes continue their downward spiral, Imperial intends to counter this trend by bolstering its investments into vaping products and selling their premium cigars division. Furthermore, Imperial Brands recently claimed that industry figures showing drop-in sales were exaggerated; reports that this figure was 11.2% was dismissed for a more reasonable 6.4%. Furthermore, company director David Newns is reported to have spent almost £250,000 buying shares, injecting some form of optimism into the company.
Top Trades is published every fortnight in Equity Insight, a newsletter written by our stockbrokers and investment managers. It provides market commentary, a focus on individual sectors, technical analysis, potential trading opportunities and share reviews.
 
Please note that investments and income arising from them can fall as well as rise in value and you may lose some or all of the amount you have invested. Past performance and forecasts are not a reliable indicator of future results or performance. Please note that this communication is for information only and does not constitute a recommendation to buy or sell the shares of the companies mentioned.
 
 
Redmayne Bentley’s Top Trades
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