October 8th, 2007 |
Intro | No comments.
Here at the Market Insider we pick the best of the week’s boardroom wheeler dealing and analyse it for you. Using our properietary system, we’ll tell you which stocks to buy and which to avoid.
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The Insider
Sphere It
April 13th, 2008 |
Market whispers | No comments.
Pick of the Week
IMI, the unloved metal basher, wins a resounding thumbs up. The entire senior team used all or part of their annual bonus to buy shares 465p, which is a big vote of confidence in prospects. The stock has rebounded quite strongly since its autumn collapse, but obviously our insiders think there is more to come. IMI is one of those firms that has really carved a niche out for itself - it makes pumps - so won’t be as exposed to the downturn as the rest of the engineering sector. One of the its core strengths is its exposure to the oil and petrochemicals sectors, which still booming despite the economic downturn. I found an interesting piece of research from the broker Evolution, which looks at the fortunes of the engineers and draws a parallel with what happened in 1998/99 when the industry valuations last collapsed. It found the sector P/E went from 13.1 to a low of 8.8 then back to a 12.9 - an all in little over a year. Using that analysis, then there is still around another 25% upside to be made from investing in the likes of IMI. With market in such a downbeat mood last week, you can now pick IMI up at 459p. Set a stop loss of 360p.
Worth a Look
The boardroom buyers were out in force at Brit Insurance (BRE) with the deals done at around 264p. Good job you didn’t follow them on the day of the announcement (10-4) as they are now down to 247p. Even so, the company is generating a high conviction buy. The stock is more than £1 off its year high, which means nothing in these markets, but close to its three-month peak. Set a stop loss of 210p.
The hedge fund manager Charlemagnehotel furnishing in Bulgaria (CCAP), scores highly on the directors’ deals scale. A whole boardroom bevy - including uber rich boss Jayne Sutcliffe - bought in after last week’s underwhelming results, where assets under management dropped quite markedly.
One thing that puts us off wading in all guns blazing is the fact that sentiment is against the financial sector at the moment and hedge funds in particular. We would avoid it for the moment, but if you are tempted set a tight stop loss of 32p.
What Not to Buy
See Climate Control (CLE) non-exec Klaus Gierstner has been out buying. Not one for us. Perhaps carbon credits and emission trading will take off. But this has the whiff of a dotcom stock about it. Last reported revenues £2m, market capitalisation £740m. See what I mean.
A little birdie has steered me clear of Pursuit Dynamics (PDX), which he reckons will be the target of a bear raid. I don’t really want to pass on the rumour doing the rounds as it may be unfair and defamatory if untrue. But mind your eye.
I had to laugh when I learned that Anglo-American (AAL) boss Cynthia Caroll cashed in £1.4m-worth of shares in the miner in order to buy a house. Seems the banks are really getting picky who they lend to these days.
Sphere It
Holidaybreak
