CMC Markets - buy the recent weakness? Gary Newman reviews...

EXPOSED: Chris Cleverly – the serial fraudster trying to buy West Ham. Read from Tom Winnifrith, The Sheriff of AIM, HERE

Recently the markets have been strong and generally have been heading in an upwards direction, which has been great news for many investors holding shares in larger FTSE companies. Not everyone has benefitted from this though, and in particular companies that offer CFDs and spreadbets haven’t been performing as well, and are actually craving some higher volatility to return to the markets as it is during those periods when they tend to perform best. Given everything that is going on in the world at the moment though, including an end to tapering; talk of interest rate rises and potential inflation problems; bond yields rising; the threat of Covid re-emerging in the West this winter and causing further issues; not to mention shares in some countries such as the US trading at crazy multiples, then I find it hard to believe that we won’t see greatly increased volatility during the latter part of this year and into 2022.

Money raising and a rejected takeover, so what is going on at easyJet? Chris Bailey writes HERE

CMC Markets (CMCX) has just taken a big hit to its share price following a disappointing trading update for the five months up to the end of August, and that caused a drop from around 420p to the current price of circa 290p. Even prior to that news, the market must have had some doubts as the SP had been drifting since early April when the shares were trading at close to 550p. The main negative in the update was that 2022 full year net operating income was now expected to be significantly lower than that stated in the Q1 trading update to the end of June, which had noted the drop in client trading activity but was still predicting an operating income in excess of £330 million. The continued lack of volatility and lower trading activity amongst both existing and newly acquired clients since that update has caused the company to revise its estimates downwards to £250-280 million for the year, but does also mention that is based on the assumption that current market conditions will prevail. So if we do see volatility return, and as a result of that higher levels of trading activity during the remainder of the year, then it wouldn’t surprise me to see CMC achieve the upper end of the new guidance, or even exceed it.

Good news travels fast, bad news is delayed – it's Salt Lake Potash again. Read HERE

Prior to this blip in income the company had been performing very strongly, and has benefitted from a significant number of new clients, as compared to pre-pandemic levels, and so far it looks like it is managing to retain them and that their accounts are still remaining active, even following the end of furlough and a general return to work. This is supported by the fact that AuM (assets under management) continue to be at record levels. Net operating income for 2022 isn’t going to compare favourably with the £410 million recorded for the previous year, which saw it make a pre-tax profit of £224 million. Until we see the interims it is hard to gauge exactly how much profit can be expected this year, but going by past figures, I’d still expect a profit of circa £100 million even if it only achieves the lower end of guidance. That would likely result in earnings per share of around 30p, and suggests to me that the current share price is too low as it would be trading on a multiple of below 10x. Again, this is only guesswork, but I’d like to think a dividend of around 15p would be paid for the year, based on my profit expectations (and the company policy to pay out 50% of post-tax profit as a dividend each year), and if that was the case, then it would be a very handy yield of in excess of 5%.

TP Group – Science Group hits back at defence against boardroom change requisition. Read HERE

Obviously a lot of guesswork is involved here until we get the actual figures on profit and the like, but I can see enough to pique my interest at the current market cap of around £844 million, and to make me think that the drop on this FTSE250 company has been overdone – quite likely the fact that it isn’t the most liquid stock, as Peter Cruddas owns 56.7% of the company, along with several II holders having positions around the 5% level, also played a part in how hard it fell when the trading update came. I can see enough recovery potential here to have bought some myself, with an initial target of somewhere around the 330-340p level for a trade, at which point - and assuming it actually bounces back of course! - I will reassess my position and decide whether to bank it or to take a longer term view on all or part of it, depending on how the markets are looking at the time. Buying stocks that have seen a big drop isn’t always a good strategy, as often there is good reason for that drop, but the flipside of that is that often the initial drop after news is overdone, and even the very large FTSE companies can sometimes see a decent bounce once they’ve settled down, and I think there is a good chance that CMC will do that.

Cineworld – the debt markets are telling you that the bears will be happy and the shares will be toast. Read HERE

Filed under: CMC Markets, Chris Cleverly, easyJet, Salt Lake Potash, TP Group, Cineworld

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OptiBiotix Health - interims, much more to come...

10/15/2021

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10/14/2021

Orcadian Energy - good farm-out and direction of travel. Buy says Peter Brailey...

10/13/2021

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10/12/2021

Imperial Brands - full-year trading statement, Income Buy...

10/11/2021

Headlam - still a Buy following CEO change? Chris Bailey reviews...

10/08/2021

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10/07/2021

Panther Metals - a more drilling speculative buy says Nigel Somerville...

10/06/2021

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10/05/2021

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10/04/2021

Anglo Asian Mining - interims, remains a Buy...

10/01/2021

Good news for both easyJet & Smiths Group shareholders says Chris Bailey...

09/30/2021

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09/29/2021

Metals Exploration - interims, more to come as access to further resource is developed

09/27/2021

Tandem Group - positive interims & outlook...

09/24/2021

PZ Cussons - a bad day Buy suggests Chris Bailey...

09/23/2021

Touchstar - interims & expects full-year ahead of expectations, Buy says HotStockRockets...

09/22/2021

Kier Group will undoubtedly like more government spending says Chris Bailey...

09/21/2021

Jadestone Energy - interims, production and cash flow growth to come...

09/20/2021

B.P. Marsh & Partners - half-year trading update, reasons for confidence...

09/17/2021

AltynGold - interims, results of capex look promising...

09/16/2021

Horizonte Minerals - project funding nearing a conclusion. Buy says Gary Newman...

09/15/2021

Wishbone Gold - further step to exploration progress. An update from HotStockRockets...

09/14/2021

Gold & Bluebird Merchant Ventures a buy? Nigel Somerville writes...

09/13/2021

Asiamet Resources - drilling update highlights further potential, Buy...

09/10/2021

CMC Markets - buy the recent weakness? Gary Newman reviews...

09/09/2021

Still a Headlam lover post its first half numbers says Chris Bailey

09/08/2021

EnQuest - interims, some production disappointment but still clear value potential?...

09/07/2021

Jadestone Energy - long-term attractions from this successful share tip?...

09/06/2021

Essentra - further recovery upside...

09/03/2021

Barclays - acquisition news. Still two quid & out? Chris Bailey reviews...

09/02/2021

Polymetal - value & growth potential? Gary Newman writes...

09/01/2021

Kefi Gold & Copper - more positive news considers HotStockRockets...

08/31/2021

Kefi Gold & Copper - Tulu Kapi funding update. Positive but how much?...

08/27/2021

Touchstone Exploration - Q2 update, remains a Buy says HotStockRockets...

08/26/2021

Anglo Asian Mining - Zafar maiden JORC Mineral Resource adds to potential

08/25/2021

Ibstock - based on broader issues than the Sunday press suggested, but a buy says Chris Bailey

08/24/2021

SkinBioTherapeutics - Business Update, high margin profit potential moving closer...

08/23/2021

OptiBiotix Health - extends Seed Health territories. Strong Buy...

08/20/2021

Jubilee Metals - positive production and prices says Gary Newman...

08/19/2021

BP - Q2 2021 results, creating value now & for the future?...

08/18/2021

When the FTSE 100 dumps next, have a look at Prudential says Chris Bailey

08/17/2021

Empresaria - longer-term upside, but what about the short-term? A review from HotStockRockets...

08/16/2021

Seed Innovations - a buy again? A review from HotStockRockets...

08/13/2021

Ariana Resources - more drilling results & time to buy more? Nigel Somerville writes...

08/12/2021

Still a Rolls-Royce believer says Chris Bailey...

08/11/2021

Gold and gold stocks - what is ahead? Nigel Somerville reviews...

08/10/2021

OptiBiotix Health - shares up on trading & commercial update, much further to go...

08/09/2021

Impellam - half-year recovery but more to come...

08/06/2021

Empresaria - half-year trading update, recovery building says HotStockRockets

08/05/2021

Johnson Matthey - still excited about prospects writes Chris Bailey...

08/04/2021

Rio Tinto - the story remains so much more than just cultural heritage says Chris Bailey

08/03/2021

Metals Exploration - Q2 challenges but a better outlook considers HotStockRockets

08/02/2021

Castillo Copper - further copper intersections & visible mineralisation, Buy

07/30/2021

British American Tobacco shares continue to offer attractive total return hopes says Chris Bailey

07/29/2021

Reckitt - recent share price decline too severe? Chris Bailey reviews...

07/28/2021

Centamin - remains a buy following Q2 report says Nigel Somerville

07/27/2021

Union Jack Oil - West Newton update, clear upcoming catalysts...

07/26/2021

Bluebird Merchant Ventures - operational update shows progress is being made, Buy...

07/23/2021

Saga offers interesting exposure to the travel industry bouncing back considers Gary Newman

07/22/2021

easyJet - ten quid or more share price again by the end of the year? Chris Bailey writes...

07/21/2021

Headlam Group - a recovery buy?...

07/20/2021

Burberry - chav challenges? Chris Bailey reviews...

07/19/2021

Orcadian Energy - a newly-listed AIM oiler Buy suggests Peter Brailey...

07/16/2021

Kosmos Energy - production & share price upside potential says Gary Newman...

07/15/2021

Cairn Energy - a lot to like at this price? Gary Newman reviews...

07/14/2021

DS Smith - further recovery & structural growth potential following full-year results?...

07/13/2021

GlaxoSmithKline - a recovery buy...

07/12/2021

Wm Morrison - recommended offer, but is there still more to come?

07/09/2021

Pick and choose your stocks - and if you need to houses - carefully says Chris Bailey...

07/08/2021

After Wm Morrison, J Sainsbury next? Chris Bailey writes...

07/07/2021

I3 Energy has turned things around - plenty of further potential considers Gary Newman...

07/06/2021

AEX Gold - Nalunaq and exploration update, Buy...

07/05/2021

Impellam Group - a recovery buy suggest Tom Winnifrith & Steve Moore...

07/02/2021

MyHealthChecked - acquisition, building a business of sustainable scale?...

07/01/2021

Burberry CEO deciding to leave a problem? Chris Bailey reviews...

06/30/2021

GlaxoSmithKline - a buy despite the unexcitable CEO? Chris Bailey writes...

06/29/2021

Kefi Gold & Copper - Ethiopia election operational update, Buy...

06/28/2021

Kier - open offer result following subsidiary sale, recovery buy?...

06/25/2021

Ariana Resources - more very positive drilling results. Buy says Nigel Somerville...

06/24/2021

DS Smith - strange name but a great company says Chris Bailey...

06/23/2021

Horizonte Minerals - short-term delay largely irrelevant. Buy says Gary Newman...

06/22/2021

Empresaria - a summer of positive macro-economic tailwinds ahead? From HotStockRockets...

06/21/2021

Pharos Energy - oil discovery and further potential catalysts says HotStockRockets...

06/18/2021

B.P. Marsh & Partners - full-year results, recovery opportunities...

06/17/2021

Serica Energy - plenty to make me think that it will continue to do very well says Gary Newman

06/16/2021

EnQuest - new debt facility, recovery buy says HotStockRockets

06/15/2021

Kefi Gold & Copper - still a risk-reward buy following executive bonus plan victory for investors...

06/14/2021

Asiamet Resources - progressing several key workstreams. Buy says HotStockRockets...

06/11/2021

British American Tobacco - positive pre-close update. Remains a Buy says Chris Bailey...

06/10/2021

Reckitt to sell a business in China but still loves the emerging markets. Chris Bailey writes...

06/09/2021

Bushveld Minerals - vanadium about to enter an up-cycle? Gary Newman writes...

06/08/2021

Anglo Asian Mining - how pleasing and exciting the results announcement?...

06/07/2021

SkinBioTherapeutics - positive study results, still multi-bagger potential?...

06/04/2021

With a new team in place Afentra is a buy says Gary Newman

06/03/2021

Still excited about prospects for Johnson Matthey says Chris Bailey...

06/02/2021

Central Asia Metals - a buy? A review by HotStockRockets...

06/01/2021

Predator Oil & Gas - Morocco and Trinidad updates, more to come from this great share tip?...

05/28/2021

Playtech - good sale & a sensible update. Still undervalued suggests Chris Bailey...

05/27/2021

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