Daily Stock Market Report (Fri 14 Feb 2025) - TATE, XPS, WG., TLY, NWG

14th Feb by Graham Neary

50 comments 4903 reads

Happy Valentine's Day,

Mark has given us a view on TATE to get us started.

1pm: hanging up my pen there for the week, have a nice weekend!

New research piece by Alex: Can brokers outperform simple algorithms in the world of investing?

The Week Ahead has been written by Keelan this time, including an in-depth look at Jet2 which will publish a full-year trading update next week.

Share price movements today

At the Investors Chronicle, Simon Thompson has published his bargain shares for 2025. These include my largest holding Volvere (LON:VLE) in addition to Crystal Amber Fund (LON:CRS), Gattaca (LON:GATC), Creightons (LON:CRL), Agronomics (LON:ANIC), Assetco (LON:ASTO), Carr's (LON:CARR), K3 Business Technology (LON:KBT) and Tavistock Investments (LON:TAVI). Several of these shares have risen in response to being tipped in this way.

My attitude to this is as follows: if I was already thinking about selling, then the day of a tip is a fabulous day to sell, as I'll probably get a higher price with extra liquidity.

On the other hand, if I wasn't thinking about selling, then I take no action. I haven't sold any of my VLE shares yet but as they approach my estimate of fair value I may start thinking about it!

In general, the people who react to a tip by buying are very unlikely to have the patience to stick around for the long haul, as they don't have real conviction of their own in the idea. So in the end, I don't think that tips make much of a difference: you get an initial spike of buying activity, but then it quickly dissipates. The new buyers will probably sell and move on to something else before too long.

Companies Reporting

Name (Mkt Cap)	RNS	Summary	Our view (Author)
Natwest (LON:NWG) (£35.2bn)	Annual Results	EPS 53.5p, up 12%. RoTE 17.5%. TNAV per share increases to 329p. Outlook: RoTE 15-16%.	AMBER/GREEN (Graham) [no section below] Outlook for 2025 suggests a small deterioration in return on tangible equity (ROTE) but income is expected to rise >4%. Possible small rise in impairments to 20 basis points. CET1 stable at 13-14%. I think it's ok to be moderately positive on the major banks although they are not the bargains they once were.…

Unlock with Email

Unlock with Google

Already have an account?
Login here

ACounsell

14th Feb

Have to agree on Tate & Lyle (LON:TATE) - has been a very poor performer over the last 8 years I have held. There was one spike when talk of potential acquirer but that came to nothing. We shall see if following Stockopedia's views on profit warnings turns out to be accurate in this case as I sold my holding this morning. You can now guarantee that the potential acquirer will return and the share price will rocket. However, I took the view that even at a 40% acquisition premium my investment still wouldn't be back to original cost so just not worth the uncertainty of continuing to hold.

JohnDoe2378

They are pretty useless last few years, will all spike then gradually drop back

Yu (LON:YU.) would do well to consider this

Dicky Mint

XPS Pensions (LON:XPS) start administering the John Lewis Partnership pension scheme from this month too - 130,000+ members

Rusty2

IHT relief could be wiped out as the Govt. is desperate to raise taxes. Several larger stocks have announced plans to delist from the AIM, Nexxen International (LON:NEXN) GlobalData (LON:DATA) Gamma Communications (LON:GAMA) and Mortgage Advice Bureau (Holdings) (LON:MAB1). Would not surprise me if Burford Capital (LON:BUR) did.

A few people think the AIM will be disbanded soon.

John LA

I suspect many will stay for the tax incentive and maybe there will be a movement into AIM, the tax incentive is valuable for shareholders

If that goes, l think it will be end of the AIM. Look at the performance of AIM shares before the last budget. The larger stocks are moving out.

In October '24, 92 stocks had delisted from AIM, in a year. Only 6 stocks were over £1bn, an all time low, 2 of which plan to delist, this year.

Howard Adams

Hi LumpedOn

This from a news feed of Hermes International SCA (EPA:RMS)

PARIS, Feb 14 (Reuters) - Hermes HRMS.PA is looking into adding an haute couture line, which it could launch as soon as 2026 or 2027, Axel Dumas, executive chairman of the French label said on Friday.

"We are thinking about an haute couture line," he told analysts at a presentation of the group's full-year results.

"There has to be an aesthetic reason, it has to be beautiful, there has to be specific know-how," he added.

Regards

Howard

Silver Moon

For myself the annoying thing is that being one of my dogs I sold last December and within days the SP doubled. Now it is going to the Nasdaq I am glad it left my portfolio.

pj8

The options are immaterial - satisfied from Treasury

Graham Neary

ST has also tipped my largest holding VLE which has risen in response. He has done this before, for this stock. Thanks Simon, if you're reading this!

MS International (LON:MSI) What just 13,334 options?

Can be a good time to sell, following a share tip. ST bargains of the year, are down about 30% against the All Share index, over the past 2 years.
Must be due a good year, l suppose.

I do hold some Creightons (LON:CRL).

Can't sell either Creightons (LON:CRL) or Volvere (LON:VLE) at the moment, on my platform, so much for a market.

davidjhill

They haven’t delisted yet - they delist at close tonight.

The data provider obviously made a mistake and provided the consolidated price after close and then had to row back this morning (hence it appears to have halved when it has done no such thing)

Nexxen International (LON:NEXN) They did mention a 2 for 1 share split.

If people are selling MS International (LON:MSI) based on that then they need to do a lot more research on the stocks they buy Snowdrop

MS International (LON:MSI) already operates locally in the US so makes no difference

Don’t fund Ukraine is irrelevant for MS International (LON:MSI)

It is clear defence spending long term is only going one way (and it’s not down)

This is small uninformed and under researched retail shareholders selling tiny amounts in an illiquid stock. MS International (LON:MSI) is now on a cash adjusted PER of about 6 !!!

2:1 consolidation (not split) Rusty

As at cob tonight they will consolidate the ordinary UK listed shares at 2:1 to match the existing ADRs. Then they will move the ADRs to a Nasdaq listing on Monday.

Thus if you hold 1000 shares tonight in the UK you will get 500 shares on Monday which will be on Nasdaq. The price on the Nasdaq is currently double the price in the UK ($10.08) or £4. So you will own half the number of shares at double the price. Ie no impact.

For some reason the data provider assumed the consolidation at close last night (a day early) and made a mistake. The price (for today) remains where it was at 400p.

GN100

Natwest (LON:NWG) I worry about the Gov. shareholding. Desperate to raise money they could just dump these in the market.

LumpedOn

Howard - thanks. Maybe that's why it's given back nearly all its 5% gain this morning !

They clearly know the biz better than me, but I wouldn't like to see distractions like this. Hermes International SCA (EPA:RMS) has always appealed to me because of its moat - the Birkin Bag - and the tight focus on product range that generates terrific margins.

I also hold a large chunk of LVMH Moet Hennessy Louis Vuitton SE (EPA:MC) but check the SP progress over the last 5 years and see the impact of a large revenue stream from fashion lines.

Hindsight is easy, but I wish I'd got on with my idea to rotate LVMH into Hermes over summer last year. Just such a hard decision at the time to merge my #1 & #2 holdings into a single biz... As they say, always trust your gut.

Stockopedia says: "Nexxen has actioned a 2-for-1 split today"

It is a right mess, my platform, has it down 97% but share price is around 400p.

Daily Stock Market Report (Fri 14 Feb 2025) - TATE, XPS, WG., TLY, NWG

Share price movements today

Companies Reporting

Unlock the rest of this article with a 14 day trial

About the Author

Graham Neary

50 comments

Unlock the metrics for all these stocks and more...

Unlock the metrics for all these stocks and more...