THE TIPSTER Aviva shedding profits and chief execs
TO lose a chief executive is always rather unfortunate, but Aviva’s long-suffering shareholders must be hoping that Andrew Moss’s departure will allow the company to begin a recovery operation, but any effort will be long and involved. A possible sale of the non-life insurance operations might help shore up the capital base, but the group’s big exposure to the Eurozone will mean heavy going. IG’s price on Aviva is 289p-290p.
Equities continue to fall in a general risk off pull-back as the Eurozone crisis escalates. But the banking sector is coming under additional pressure following JP Morgan’s shock announcement last week that its chief investment office lost $2bn on its “hedges”. Yesterday, Barclays stock price crashed through the 50 per cent retracement of its September 2011 to March 2012 rally. Investors are increasingly worried about the lack of transparency on all banks’ balance sheets. GFT quotes Barclays cash CFD 189.80p-189.90p.
TUI Travel has seen its outlook improved over the previous six months. Its share price is close to half of where it was in mid-2007 leaving upside potential. Cash flow problems at its largest competitor Thomas Cook have handed the company a golden opportunity to increase market share. As the euro weakens, holidaying within the continent becomes a more viable alternative to domestic breaks. Should the price break 205p, we could see the stock fly. SpreadCo quotes 177.93p-178.73p for TUI Travel.