Equities are bouncing back. The Trader Dominic Picarda is still wary of the current erratic nature of the market but thinks the FTSE is close to a buying signal.
IC TIP UPDATES:
Sell recommendation Hibu (HIBU), formerly known as Yell Group, has stopped paying its lenders as part of its process to restructure its debts – discussions are ongoing. Even if a restructuring is secured shareholders are unlikely to see any value for their holdings in the company.
Debenhams’ (DEB) full year results confirmed the retailer’s continued resilient performance with group like for like sales up 2.3 per cent and pre-tax profits 4.2 per cent better at £158.3m. Buy.
Simon Thompson recommendation Bloomsbury Publishing (BMY) has issued half year results which showed flat turnover and a reduction in profits but the second half weighting in the business prompts us to keep our buy rating.
AZ Electronic Materials (AZEM) has said that trading has been resilient, with revenues up 1 per cent in the third quarter, which is in line with expectations. Buy.
KEY STORIES:
After a strong recent run online retail specialist ASOS (ASC) has seen its shares sell off this morning after issuing results for the five months to August. Overall sales were up by 32 per cent to £238m with UK sales 13 per cent better and international sales up 46 per cent.
Temporary power specialist APR Energy (APR) has been hit today after issuing a profit warning. Revenues in the three months to September were $54m, down from $57m the previous year and the order book appears to be slowing.
Drax Group (DRX) is raising £180m through a placing with investors with the proceeds to be put towards the cost of transitioning its coal fired power station towards using biomass fuel.
OTHER COMPANY NEWS:
Bwin.party digital (BPTY) has signed an exclusive deal with social gaming specialist Zynga to develop real money poker and casino games for the UK.
Firestone Diamonds (FDI) has announced positive feasibility study results from its Liqhobong mine in Lesotho.
