Stephen Rawlinson
30 March 2017 · 2 min read

Market Commentary - Housing, Infrastructure, Construction and Services 30th March 2017

Polypipe has had a strong start to the year, the shares are up 9.2% YTD at 353p and the 2016 numbers announced this morning indicate a large part of the reason for that support. Balfour Beatty was the best mover yesterday rising 1.7% to 269.3p.  Berendsen, who loves ya? Nobody at present, it would seem, as the price has drifted downwards to 740p at close yesterday, the lowest level since March 2013.

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Alexandra West
29 March 2017 · 3 min read

China to build UAVs in Saudi Arabia

UK’s biggest defence export market looks east

Saudi Arabia has signed a strategic partnership with the China Aerospace Science and Technology Corporation (CASC) in order to establish the manufacturing of Chinese Unmanned Aerial Vehicles (UAVs) in Saudi Arabia. This announcement is significant for two reasons; first it shows that Chinese defence companies are now competing with their western peers, and second it will challenge the UK Government to become comfortable with Chinese made military hardware operating alongside UK built military aircraft.

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Stephen Rawlinson
29 March 2017 · 2 min read

Market Commentary - Housing, Infrastructure, Construction and Services 29th March 2017

Just a few items of note today including more changes at the top at SIG, results for 2016 from Entu and Telford has announced its fourth completed PRS scheme in a deal worth £54m for 112 new homes that will be finished later next year. Ferguson/Wolseley’s numbers were greeted positively yesterday and the stock rose by 5.1% to 5130p. The uplift may in part be in anticipation of the likely change of domicile to the US which should trigger a higher rating.

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Maxim Jacobs
28 March 2017

Edison KOL call

Edison KOL Call: AML

The fifth in our KOL series, Edison sponsors an interview with Dr. Douglas Smith of the Johns Hopkins University School of Medicine.  The conversation featured a discussion on emerging AML treatment.

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Stephen Rawlinson
28 March 2017 · 2 min read

Market Commentary - Housing, Infrastructure, Construction and Services 28th March 2017

Wolseley has produced a solid set of numbers at the half year with organic growth in revenue of 3.2%, which translates to 6.7% at CER and 24.5% at AER. G4S was the most popular stock in our universe rising 1.5% yesterday to 302p. Predictably Babcock was the back marker after its news yesterday on the Magnox nuclear decommissioning contract. It fell 4.3% to 877p.

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Richard Windsor
28 March 2017

Didi – Jam today

It’s time Didi started trying to make money.

With the ride hailing market in China now wide open for it, Didi has no reason to go on burning billions of dollars for the sake of growth. Consequently, we cannot see a good reason for Didi to raise $6bn as it should be looking to internal cash flow to fund its investments. The one exception is to have a war chest for acquisitions in order to go global, but we think that it is better to buy expensive paper with equally expensive paper rather than cash.

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Stephen Rawlinson
27 March 2017 · 2 min read

Market Commentary - Housing, Infrastructure, Construction and Services 27th March 2017

The only formal news this morning is that Babcock’s partnership working on the nuclear decommissioning project on 12 Magnox sites has reached agreement with the Nuclear Decommissioning Authority to end the contract in 2019. News later this week comes from Wolseley tomorrow with its interims and from T Clarke with its finals for 2016.

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Stephen Rawlinson
24 March 2017 · 2 min read

Market Commentary - Housing, Infrastructure, Construction and Services 24th March 2017

Henry Boot, the small property, construction and land development company provides us with its finals to end December 2016 this morning. The sector had a spring in its step yesterday as it recovered some of the fall of the two previous trading sessions.

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Stephen Rawlinson
23 March 2017 · 2 min read

Market Commentary - Housing, Infrastructure, Construction and Services 23rd March 2017

Kier’s half year numbers are the main headline today, Crest Nicholson has issued an AGM update and WYG has also updated. Kier has announced a bit more than good numbers as in other announcements it also states that it will soon have a new Chairman and it has created a JV with east of England based Cross Keys Housing into which it will transfer some land and developments worth £97m in exchange for £64m cash now and 90% economic ownership of the JV (50:50 split of voting rights).

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23 March 2017 · 3 min read

Market wobble? Still time to re-position portfolios

No clear trigger for recent market declines

Even if some calm has now returned, the market declines this week are perhaps a little more disconcerting than usual as they have occurred with no obvious trigger and followed an extended period of very low volatility. This makes the situation a little more uncertain, as specific triggers can often be analysed, quantified and discounted. There is therefore the danger of investors becoming fearful of the unknown - and risk averse - should the declines become more serious.

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