Markets Calm

Headlines say markets calm despite geopolitical storm (FT) and all stock picks are a mix of 85% Buy, 7.5% Hold and 8% Sell.

1. STRONG BUY Optibiotix Health

Top performing stock pick this week is STRONG BUY OptiBiotix Health by Tom Winnifrith in ShareProphets with a tip performance of 8%.

The company description says OptiBiotix Health is developing a range of technologies that will ‘modulate the human biome to prevent disease’ but the website shows a range of weight loss products such as shakes and additives.

OptiBiotix Health share price launched at 2,692p in 2011, went to an all-time low of 8.25ps hortly after in 2014 and is now at 32p.

News this week is that the company has secured the licence to a Tata Chemicals product ‘Fossence’ to add to its weight loss products in India.

In Stockomendation Winnifrith is the only analyst with STRONG BUY and there are no active short positions open.

2. SELL The Mission Group

Second top stock pick this week is SELL The Mission Group by Steve Moore in ShareProphets with a tip performance of 6%.

The Mission Group is a collective of ad agencies that says it employs 1,000 people in 27 locations.

EnQuest share price listed at 83p in 2010 and is now at 17p per share.

The Mission Group share price listed at 126p back in 2006, rose to an all-time high of 149p in 2007 then an all-time low of 10p in 2010 and is now almost there again at 13p.

The company announcement earlier this week said it expects full year profits to be ‘materially lower’ than expected; with no dividends until 2025 and a potential breach of a banking covenant, which sparked an investor sell-off and sent the price tumbling 67% in the same day, due to reduced ad spend.

Canaccord Genuity downgraded its rating from BUY to SPECULATIVE BUY and cut the target price from 61p to 51p.

In Stockomendation four out of five analysts say BUY or LONG TERM BUY they are Canaccord Genuity, Shore Capital, Royston Wild and Kevin Godbold, with only Steve Moore saying SELL. There are no short positions open.

3. OUTPERFORM Essentra

Third interesting stock pick this week is OUTPERFORM Essentra by RBC Capital with a tip performance of 6%.

The company has supplied supplies plastic and fibre products from headquarters in Milton Keynes since 1940 when it was the fibres division of Bunzl and has grown since then through acquisition both locally and internationally, as well as organic growth.

Essentra share price listed at 250p in 2005, rose to an all-time high of 1,042p in 2015 and is now at 142p.

This week shares plummeted 12% at the announcement of lower than forecasted profits due to a slowdown in trade.

In Stockomendation three out of three analysts say BUY or OUTPERFORM they are RBC Capital, Tom Winnifrith and Jefferies. There is one short position open by GLG Partners LP.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 26th October 2023.