THE TIPSTER
NOW that the search is on for a replacement for John Bond, chairman of Vodafone, investors might start to see the stock as more attractive. One possible replacement is Roger Carr. His vast experience and enviable CV, including having aided the sale of Cadbury to Kraft, could mark a refreshing shake up for the telecommunications company. Cantor Index is currently offering a spread of 159.32p – 159.89p
Despite positive signals from UK bank Barclays – such as 600 new jobs being created – the stock has been struggling from Evolution Securities’ downgrade. Evolution reiterated its sell recommendation and cut its price target by 12 per cent to 298p. The expectation may be that the sector generally has a healthy course ahead, but question marks are being flagged against the company’s business risk and the potential downside for returns on equity. The current IG Markets price on Barclays is 322p-322.1p.
Dana Petroleum continues to sit tight, waiting for a third-party valuation and a higher bid than the current one offered by South Korea’s state-run oil company KNOC. The third party valuation is due tomorrow. The report is expected to conclude that the £18 share deal is indeed too low. How the market will respond remains to be seen, but we can be sure that if the KNOC bid fails and there are no other suitors there will be a downside risk. The current IG Markets price on Dana Petroleum is £18.04-£18.05.
After hitting a four-week low on Friday, London-listed Tullow Oil bounced back yesterday as takeover rumours resurfaced in the markets, causing buyers to push the price up 26p to 1,182p. The £20-a-share bid price certainly looks like an attractive premium. However, the chatter could prove to be merely market mischief on a day quietened by the US Labor Day holiday. The Spreadex price is 1,179p – 1,187p, expiring on 14 September.
Aerospace giant EADS is plagued with problems – its major programmes are suffering from technical glitches. However, the management has upped orders, sales and profit expectations for 2010 and its balance sheet is in good shape thanks to government funding. Spreadex is quoting €18.002-€18.073.