THE TIPSTER
SINCE Richard Glynn took over the helm of Ladbrokes on 22 April, shares in the bookmaker have dropped over 13 per cent. The technical outlook for Ladbrokes looks challenging because it is trading below its 50, 100 and 200-day moving average, which are all clustered around the 150p area. Downtrend resistance and indicators are all giving bearish signals and an England victory at the World Cup, which starts later this month, would spell bad news for bookmakers, so Ladbrokes might be cheering the opposition come July. Spread Co offers a spread on Ladbrokes of 138.5p–139.3p.
Richemont, the luxury goods group, has been upgraded recently with Evolution Securities upping its target price more than one third above its current level of SFr38.8. Evolution Securities points to Richemont’s strong brand-recognition and cheap stock price compared to its competitors as the major attractions of the stock. The company’s acquisition of net-a-porter.com also adds to its appeal and should help fuel growth in the future, as does the weak euro, which should boost overseas trade. The company also earns in Swiss francs but reports its results in euros. IG Index offers Richemont at Sfr39.1501-Sfr39.2209.
The US economy continues to gather strength. Yesterday pending home sales increased, which is good news since the housing sector was blamed for causing the economic crisis in the first place. This helped bost US stocks, and if the economy continues to gather steam then the S&P 500 index should be the main beneficiary. Spreadex offers a spread of 1,091.7-1,092.5.
The shares price for Topps Tiles has declined in light of disappointing profit figures announced yesterday. But there are some positives. For example, the company cut costs by £9m this year, while like-for-like sales have risen 2 per cent and revenues are still up 4.3 per cent. Topps still expects to generate £16.5m in profits this year and, in light of a drop in share price of 38 per cent since February, shares are looking more and more attractive at these levels. Look for support up to the 62p level. Spreadex offers a spread on Topps Tiles at 4601p-46.74p.
Swiss pharmaceuticals giant Roche has seen its share price do fairly well in recent sessions, in part riding off a sector-wide rally. They are now reaching strong support level at the SFr159 level, and if this is surpassed then there is large potential upside pressure towards the SFr210 mark. Pharmacueticals companies have been trading on a positive note since the onset of market volatility caused by the Greek debt crisis, and this is likely to continue for as long as issues remain that make seemingly defensive stocks attractive. Add to this the likelihood of Phase 3 trials of ocrelizumab, a multiple sclerosis drug, starting soon after Roche’s recent meeting with the US Food and Drugs Administration, and there is a very good environment for further share price appreciation in the coming months. Traders should keep an eye on the impact of healthcare budget cuts in the UK, Europe and in US, however, which could de-rail the share price and negate any of Roche’s good news. IG Index offers Roche at SFr162.74-SFr163.06.
Altium Securities released a buy recommendation for Porvair, the filtration company. It argued that its acquisitions in water and metals have helped to boost growth after a challenging period, and its contract with Alcoa – the aluminium producer – has been renewed with more favourable terms for Porvair. Its results are not due for another month, but expectations are high and there’s a significant chance of continuing upside support as traders look to take advantage of Porvair’s difficulties over the last year. IG Index has a spread for Provair at 67.83p-68.17p.