Share Picks of the Week

Headlines like Twenty times more funds are making double-digit losses than double-digit gains in 2022 but most stock picks are BUY this week at Stockomendation.

1. BUY Next Fifteen Communications

Top stock pick this week was BUY Next Fifteen Communications by Berenberg with a stock pick performance of 11%.

Berenberg lowered the target price from 1700 to 1450 so although still a BUY stock pick, it’s a lower forecast than the previous Berenberg rating issued on 5 April that lost 30%.

Lots of info out there on this marketing company but the real picture is complex, as usual!

The big news this week is that M&C Saatchi shareholders voted against a takeover offer by Next Fifteen, well actually businesswoman Vin Murria who owns 22% voted against it. Her investment vehicle ADV had a rival bid which also collapsed.

Although Next Fifteen paid a shareholder dividend this year it lost money last year which is concerning some analysts. In fact, earnings have declined for the past 5 years straight which might scare some investors off, but Simply Wall Street says it’s trading below value and forecast to grow. With shares trading at the lowest level in 10 years, this is either an opportunity to buy value stock at a bargain… or not!

Is Next Fifteen just going through a bad patch? If we look at the long game, we see an opening price of 203p which for a stock now trading at 1,000p which might not look so gloomy after all, especially if you had bought in 1999!

2. BUY Watches of Switzerland

Second interesting top stock pick this week was a BUY Watches of Switzerland Group by Goldman Sachs with a stock pick performance of 8%.

This high-end watch shop with 16 stores across England opened at 308p in 2019 and is now trading at 835p. Not bad!

But what about this stock pick? Goldman reiterated its BUY recommendation that was placed in May (which actually lost 8% over that time) with a new target price of 1010p. So, someone is confident!

But luxury watches when the economy is doomed, really? Well, we see a 2 tone ‘ultra-exclusive’ collaboration with Speake-Marin that quite frankly might look like the back of a clock to the unaccustomed. Quite seriously, the significant share price rise of over 20% in the past months is enough to entice those previously unaware of the delights of luxury watches into the shop, so to speak.

However, the PE ratio is expensive and volatile share price, we might look at the 66% forecast rise in a cooler light. However, a rise is a rise!

‘Luxury looks resilient’ is the headline – seems like Goldman agrees.

3. BUY Jadestone Energy

Third interesting stock pick this week was a BUY Jadestone Energy by Ben McPoland in The Motley Fool with a stock pick performance of 7%.

The Singapore oil & gas company this week announced a Western Australia acquisition of 17% from BP of the Cossack, Wanaea, Lambert, and Hermes oilfields for $20m.

That is the big news this week. The not so well-known news is that with the purchase came floating production, storage and offloading vessel plus full abandonment liabilities estimated at US$82 million. With Chevron earlier trying to sell its stake in this field and rumours that Woodside (another possessor of the field) willing to sell, we wait to see what the future will hold for Jadestone in Western Oz.

Last week Jadestone announced its exit from a New Zealand offshore oil field with regulatory approval lagging and nowhere in sight. We assume the acquisition of an operating field was to forget the woes of the Maari project from Australian company OMV for $50m.

Top stock pickers have a track record of picking winning stocks despite the direction of Mr Market so follow the top rated professional Share Pickers, Analysts and Brokers and Stock Tipsters on Stockomendation and also see what the UK best amateur stock pickers are picking in the UK Share Picking Game

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 3rd November 2022..