Top Tips of the Week

A volatile week politically and in the money markets with headlines such as ‘Kwarteng throws UK on sacrificial altar of Trussonomics where only bankers win’ is spooking investors and U.K. Share Picking Game players have let their inner bears out of their cages with 2/3 of the top interesting stock picks this week being SELL picks

1. Smoove SMV

Top interesting stock pick this week is an AVOID Smoove (SMV) by Steve Moore in ShareProphets with a tip performance of 22%. This tech provider you’ve never heard of is a ‘customer-focused technology and services business aiming to revolutionise home moving and ownership.’ It opened at 41p in 2014, saw a brief high of 158 in 2018 and sits at 30p after a sharp 35% descent on Tuesday when it announced expected flat yield and profit for 2023.

The b2-middleman real estate technology provider’s conveyancing comparison site is predicted to grow however it is lower yield than other parts of the business which are expected not to grow and cash burn as a result of expansion has not helped matters.

The property market seems in a for a wild ride even with cowboy Kwasi’s announcements of a stamp duty cut, but Steve thinks market cap for Smoove is too high for the performance indicated.

2. Hammerson HMSO

Second interesting stock pick this week is a SELL Hammerson (HMSO) by UBS with a tip performance of 9%. The UBS rating of Hammerson has not changed since Octo 2019 when it was downgraded to sell from neutral.

The latest tip indicates a price target downgrade from 20pm to 18p this month.

On the 27th it announced a scrip reference of 2p meaning shareholders can get a cash dividend of 2p or buy shares in the plc. This enables the company to retain existing cash.

The beleaguered real estate property developer opened at 202p way back in 1988, hit 532p in 2007 and has come crashing down to 18p today.

The future is set to be tough for all in the property industry with those expected to stand the test of time being seen as a bargain. The jury is out on Hammerson with a proposed capital reduction announcement this week in addition to the scrip dividend alternative.

3. Burberry BRBY

Third interesting stock pick this week is a BUY Burberry Group (BRBY) by Stifel with a tip performance of 7%.

Headlines everywhere announcing the end of the Italian era at Burberry with Creative Director Tisci replaced by Englishman Daniel Lee and Marco Gobbetti’s departure earlier this year.

Shareholders seem to like the move. Tisci revitalised the brand and created value over the past 5 years. Lee is ex Bottega Veneta and a young choice at 35. The analyst said this is a long-term value add with potential short term disruption.

This tip was not a change of direction only a reiteration of the BUY rating however the target has been lowered to £21 from £22. From this tip we may expect a rocky time while Lee takes control with a possible rise in the future according to the analyst.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 29th September 2022..