The digital currency Bitcoin smashed through the $16,000 barrier on Thursday afternoon (by the time you read this it could well be worth much higher, or zero). A survey from Natixis Investment Managers shows that four-out-of-five institutional investors think the current price surge will end in tears. It would be interesting to find out if any of our readers have taken the plunge on the crypto-currency, but there is still enough going on in equity markets to keep everyone interested, even as we head into the pre-Christmas lull. Shareholders in Ladbrokes Coral (LCL) would certainly be weighing up their options after it emerged that the gambling firm is in talks over a £3.9bn takeover by rival GVC Holdings (GVC).
I wonder how many billions have been written down due to overly optimistic assumptions on the much-vaunted Chinese commodity super-cycle? The question came to mind on reading this week’s Sector Focus, in which Alex Newman looks at the state of the steelmaking industry. The dumping of excess capacity from China has weighed on prices, but are market fundamentals now heading back towards equilibrium? Click here to read Alex’s lowdown on the prevailing industry trends.
The legal industry used to be Alex’s old stomping ground, but results from one of London’s growing number of public companies in this sphere, Gateley (GTLY), have been covered by the IC’s Megan Boxall this time around. She points out that Gateley currently has £10.9m of unbilled revenues, which is slightly above its net current asset value – but does this prompt a change of recommendation? Read Megan’s verdict here.
Critics claim that Stagecoach (SGC) has been the recipient of an effective government bail-out after the Department for Transport took the decision to replace the East Coast rail franchise in 2020, as opposed to the originally contracted expiry date of March 2023. The decision has left taxpayers on the hook for the missing millions, but the shortfall boosted market valuations for the transport giant. Click here to read what the decision means in context of the group’s half-year figures.
Suffering from insomnia? The you might like to consider this week’s Taking Stock piece, which centres on the basic tenets of ASC 606 (Accounting Standards Codification) and IFRS 15 – new accounting standards that could lead to some unwelcome restatements in the upcoming reporting season. Click here – if you dare - to get the rundown on the new treatments.
Meghan Markle, Prince Harry’s new fiancée, has even made the pages of the IC this week, albeit via a tenuous link to luxury handbag maker Mulberry (MUL). The company’s half-figures detailed flat revenues and pre-tax losses from the first half, but its Asian expansion is among reasons for encouragement. Click here to find out what the IC’s high-street guru Harriet Russell says on the bag maker’s prospects.
Brexit uncertainties have probably had an unwanted effect on the London IPO market, at least in the early part of the year. But conditions have improved, if results from broker Numis (NUM) are anything to go by. Click here to read Emma’s interpretation of the group’s full-year figures.
