Looking Ahead At The Next Week
Companies: BTRW, KDNC, CAMB, COST, GEO, GLV, GRG, MKS, NXT, ORM, PHP, SKA, MRW
Company news, such as Interim results, Final results, AGM statements and Trading Updates, are all recognised by active investors as being spurs that generate interest and dealing activity. This column highlights some company news that will be announced in the week ahead.
Check out any of the companies mentioned by using the Research-Tree Companies Research link.
Monday 4th January
Interims: None declared
Finals: None declared
Trading Updates: None declared
AGMs: Primary Health Properties (PHP) General Meeting
Research Tree Comment:
Long-term investor in the healthcare sector Primary Health Properties (PHP) continues to expand. Before the end of 2020 the group announced a couple of deals – the first to acquire for £4.6m the West Derby Medical Centre which is leased to a large GP practice with 13,000 patients, the second was to fund the €12.6m construction of the Enniscorthy Primary Care Centre in County Wexford, Ireland.
The two deals take its portfolio up to an impressive 513 assets, 18 of which are in Ireland. Importantly they help to boost the group’s contracted rent roll up to £135.3m with a weighted average unexpired lease term of over 12 years and boasting a rate of 99.5% occupancy.
The group’s CEO Harry Hyman has even more such deals in the pipeline, which should help to push its shares even higher, currently 154p, ahead of this day’s General Meeting to confirm the 10th December announced acquisition of investment adviser Nexus Tradeco Holdings.
Analyst Martyn King at Edison Research in his note on 11th December considered that the Nexus deal, which effectively internalises the group’s management, will broaden investor interest in the company.
Tuesday 5th January
Interims: None declared
Finals: None declared
Trading Updates: Costain Group (COST), Wm Morrison Supermarkets (MRW), Next (NXT),
AGMs: Edenville Energy (EDL)
Research Tree Comment:
Analyst Joe Brent at Liberum Capital is positive on Costain Group (COST). He noted the cash on the balance sheet and the margin recovery. The Trading Update for last year’s finals should help sentiment for the shares.
Now with the start of the New Year updates season kicking off it will be more than interesting to see just how well trading went in the Christmas period. With both Wm Morrison (MRW) and Next (NXT) reporting on this day the responses will, without doubt, be totally different – one in food and the other in clothing, although both will have enjoyed the advantages of online activity.
Analyst Jie Zhang at Active Value rated Next shares, now at 7226p, as a Sell down to 5258p. Will the group’s update on its sales to Saturday 26th December 2020 be a turning point?
We would look to Chairman Jeff Malailhollo giving shareholders of Edenville Energy a positive statement at this day’s AGM. NOMAD to the company SP Angel reckons that the one for 1,000 share consolidation will improve the southwest Tanzanian coal mining group’s liquidity and marketability of its shares for both UK and overseas investors. SP Angel is also looking for an update on the progress of the repayment terms of the Lind Finance funding agreement.
Wednesday 6th January
Interims: None declared
Finals: None declared
Trading Updates: Greggs (GRG), Glenveagh Properties (GLV),
AGMs: None declared
Research Tree Comment:
The Christmas trading updates continue with a fourth quarter update from the leading UK food-on-the-go retailer Greggs (GRG) on this day. The group’s shares have advanced substantially since Edison Research published its end September note on the Q3 results, noting the gradual recovery in sales. The shares, now 1843p, were then 1,144p.
At the start of last September Glenveagh Properties (GLV) declared its interims to end June, reporting a strong demand for starter homes from this leading Irish homebuilder. Way back in April last year research house Hardman & Co published their ‘The Promised Land’ review of the housebuilding sector, in which they noted that the group’s outlook was extraordinarily positive.
Since when the shares have risen from €0.42c to €0.86c. When the group announces its full-year Trading Statement on this day will that positivity continue?
Thursday 7th January
Interims: None declared
Finals: None declared
Trading Updates: None declared
AGMs: Cadence Minerals (KDNC), Cambria Automobiles (CAMB), Global Petroleum (GBP), Ormonde Mining (ORM),
Research Tree Comment:
Analyst Paul Smith at WH Ireland, both NOMAD and broker to Cadence Minerals (KDNC), in early November last year considered that this group’s interest in the Amapa project in Brazil could be transformational.
Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. However, the 27% Amapa interest cost $6m and centres around iron ore, for which prices currently are quite strong. An update at this day’s AGM will be eagerly awaited.
Will the AGM at Cambria Automobiles (CAMB), the high luxury, premium and volume car dealership covering some 40 franchises, be somewhat negative in its outlook statement?
Analysts Mike Allen and Rachel Birkett at Zeus Capital reason that considering the external effects on the UK economy, the group warrants a cautious view. Even so they see the company as one of the survivors in its sector.
Brokers N+1 Singer appear to like the resilient group’s asset backing and its recent track record, viewing the shares, now 58.5p, to be on an undemanding valuation.
Friday 8th January
Interims: None declared
Finals: None declared
Trading Updates: Barratt Developments (BDEV), Marks And Spencer Group (MKS),
AGMs: None declared
Research Tree Comment:
On 4th November last year analyst Jie Zhang at Active Value rated the shares of Marks And Spencer Group (MKS) then 92p, as a Buy.
She fixed a Target Price of 121p over the following six months, they are now 140.75p. Zhang stated that the interim results to 26th September showed the group was on track for a strategic turnaround.
