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22 November 2019

Redmayne Bentley's Top Trades

Below, we look at the most frequently traded shares through Redmayne Bentley over the last couple of weeks and consider why they have been so popular.
 
National Grid (NG.)
Index: FTSE 100
Sector: Multiutilities
Market Capitalisation: £31,086.22m

National Grid reported half-year results last week, which saw profits and earnings per-share edge higher and the group reiterate its commitment to capital investment and the shift towards green energy. However, Governor of New York Andrew Cuomo has given National Grid 14 days’ notice before he seeks to revoke its certificate to operate in downstate New York, which accounts for about 13% of its overall business, and could thus become a significant headwind. National Grid may have been “working tirelessly” to resolve this issue, but the question remains unanswered. Shares are up c.19% year-to-date and currently trade on 21x P/E.
 
IMPERIAL BRANDS PLC (IMB)
Index: FTSE 100
Sector: Tobacco
Market Capitalisation: £16,676.09m

Tobacco giant Imperial Brands warned of its “cautious approach” to earnings and revenue outlook, due to the Government clampdown on vaping in the US. While revenues rose 2.2% to £31.59bn for the year to the end of September, pre-tax profits dropped 7% to £1.69bn, with the £525m impairment in its premium cigar business not helping matters. With Alison Cooper, the group’s Chief Executive, heading for the exit, Imperial will be resetting its next generation products investment plans for 2020. Separately, senior independent director Therese Esperdy will become the group’s next Chairman in January 2020. Shares are down 25% year-to-date and trade on 16x P/E.
 
B&M European Value Retail (BME)
Index: FTSE 250
Sector: Broadline Retailers
Market Capitalisation: £3,836.15m

B&M, the value retailer, announced poor half-year results last week, largely due to operations in Germany, which look increasingly likely to be shelved. Jawoll, the German section of B&M, saw operating losses of £12m over the period, with 50% of this relating to distribution issues. However, operations in the UK, which account for over four-fifths of sales, seemed positive; sales rose almost 14% to £1.5bn, while the group remains on course to open around 46 stores in the UK during the current financial year. Shares are up c.36% year-to-date and trade on 30x P/E.
 
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 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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