One day fund manager types will realise that shares in the staffing space are geared plays on the hope level in the world. I see updates from sector peers PageGroup (PAGE) and Robert Walters (RWA) are decidedly shabby in nature, citing a bunch of macro-level issues as reasons why their profits are not set to continue to blast strongly forward. I have mused on both before - the former most recently here - and the story of lots of non-UK growth driving profits to record levels and the like has suddenly hit the tough comparisons point...
Naturally, this means that the love has now gone out of both shares, as investors catch-up with reality. If you want to bottom-fish in areas which are already much more disliked then I would suggest you look in the industrials, commodity or financials and not yet in the services space, filtering aggressively for sensible balance sheets and businesses with a real edge at some level. A company which naturally had much more of a Brexit and related gripe is easyJet (EZJ). I have talked positively about it – most recently when the share went below the 10 quid level. This has worked out eventually into a good call, albeit a little assisted by the demise of Thomas Cook and the subsequent tightening of the shorter haul air travel market.
EasyJet is a sensible business and I am a little perplexed why the shares are down after a trading update (with a fuller set of numbers to follow on the 19th November) reiterated hopes and even concluded that a profit before tax delivery of £420-430m would be 'in the upper half of the previous guidance range'. Well maybe investors are getting greedy as the company has at face value done a decent job and even noted some benefits from strikes at some of its peer companies. Load factor was down slightly, but at 91.5% is hardly something to worry too much about. Far more impressive was the 8.6% rise in passenger numbers to 96 million and that total revenue per seat returned to growth in H2. Step forward ancillary revenues! Yes, buying that snack on a flight really does make a difference!
Clearly conditions - despite the demise of Thomas Cook - are competitive but at least it did not ramble at length about travel disruption about Brexit potentially lingering over the next year. Looking ahead, there was some griping about costs including 'an adverse impact of foreign exchange and increased Emissions Trading System (ETS) costs' but this should have been no huge surprise. In short, easyJet shares are still in play to gain further altitude with my target remaining a low teens share price (say 1300p) before I have a think about the stock again. The trading update said nothing about the dividend but I expect no overt surprise here and a 5% odd yield plus its good balance sheet (or as good as an airline can be) should allow investors to sit back and relax. If we see a ten quid or lower share price again, I am buying more.
Filed under: easyJet, podcast, Gabriel Grego, Versarien, Sith Lord Zak Mir, Woodford, Zotefoams
RISK WARNING & DISCLAIMER - FiveFreeShareTips.com tips are provided by independent authors via a common carrier platform and do not represent the opinions of FiveFreeShareTips.com. FiveFreeShareTips.com does not accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at FiveFreeShareTips.com and via emails you receive from [email protected] are for your general information and use and are not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by the tipsters or FiveFreeShareTips.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Trading shares involves the risk of loss. The tipsters and FiveFreeShareTips.com shall not be liable for any losses or other damages incurred. The value of investments can go up or down and the past is not necessarily a guide of future performance.
Well actually it will be six. One every week day and one on Sunday, each landing with you at 11 AM sharp.
Unlike other services (which may always have a vested interest) we pride ourselves on our impartiality and cover all small caps including AIM. the Standard List, The Wider Main Market and NEX.
We cover small caps, penny shares, FTSE 350 stocks and blue chips. We look for red hot penny shares, Warren Buffett style value investments with yield and growth stocks. There is no technical analysis in our work just solid fundamental analysis from a team of experts with decades of stockmarket experience.
You will not agree with all we publish but if you are interested in small caps you cannot afford to ignore it either. Yo'll never be charged for the free share tips from Five Free Share Tips and given the star writers involved you know that they will move share prices.
There's no telephone number or postal address required and there is no charge, ever, for your Five Free Share Tips membership. Just free shares tips every day apart from Saturday And each day's share tip will not just be a few thoughts cobbled together but will be detailed analysis from experts.
Our experts do not just earn their living from writing. All own shares. If they own shares in a stock they cover they will declare it and will not sell until after advising a sell to our readers. And why not our tips are so good that why shouldn't our readers put their money where their mouth is?
Don't just take our word for it! Judge us on the calibre of our free share tips and join today to start receiving them from September 1 2017. If you don't like what you get delivered to your inbox unsubscribe and you will never hear from us again. So why not give it a go? Sign Up Now
We've put together a panel of top tipsters, including:
Tom Winnifrith, in his 27th year writing about shares, noted fraudbuster & dubbed "The maverick Tipster"
Chris Bailey, City whizz kid turned financial guru, rated as one of the top 50 commentators on shares on twitter, founder of Financial Orbit
Steve Moore, has worked with Tom Winnifrith for all bar 3 weeks of his working life - a noted commentator on value stocks
Malcolm Stacey, The Grandfather of Share Blogging, the founder of ShareCrazy & a best selling autthor of stockmarket books
Lucian Miers, the Bard of the Boleyn, one of the UK's best known short sellers
Gary Newman, writes about value investing on AIM, speciality is in share tips on oil and mining companies
Nigel Somerville, The Deputy Sheriff of AIM, an expert in forensic analysis a skill used to bust frauds but also to tip true value investments
The team from HotStockRockets, specialising in AIM and small cap shares which will fly on a three month view
Remember to book your place at the UK Investor Show 2018. The UK’s top investment show taking place on Saturday 21 April 2018 at the Queen Elizabeth II Conference Centre in Westminster, London. The show will feature a unique line-up of top speakers including Nigel Wray, tech queen Vin Murria, Dave Lenigas, Mark Slater, Tom Winnifrith, Adam Reynolds, Ed, Croft, Nick Leslau Luke Johnson and Dr Johnny Hon as well as 135 exhibiting small cap companies.
The hot share tips given here are of necessity, general. They cannot relate to the individual circumstances of investors. Anyone considering following the share tips contained here should seek independent advice from a Financial Conduct Authority authorised Stockbroker or Financial Adviser. We cannot be held liable if individuals suffer losses through following share tips contained on this site or emailed out as free share tips. The value of investments can go down as well as up. The past is not necessarily a guide to future performance. Investing in shares can lose you part or all of your capital although the potential returns are theoretically unlimited. The difference between the buy share price and the sell share price for smaller company shares (penny shares) can be significant. Profits from dealing in shares may be liable to tax - the level of tax and bases of relief from tax are subject to change. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Some of the shares recommended on this site will be smaller company shares. By their nature such investments can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares (or 'small caps'/'penny shares'). FiveFreeShareTips.com & its sister site ShareProphets.com defines a smaller company share as any stock traded on AIM or NEX or which has a market capitalisation of less than £300 million.