LIVEDaily Stock Market Report (Fri 6th Nov 2026) - REC, EAH, BILN, RMV
Optimism around the post-Trump era turned to despair yesterday with the Nasdaq composite falling 5.5%, the worst day for the Nasdaq in 19 months.
Bloomberg says it was the worst day for US stocks since 2020. The S&P 500 fell 4.4%.
It was very much a tech-focused fall. The FTSE, by contrast, fell only 0.4% (although it is set to open down another 1.3% this morning).
The fall has been blamed on fears that Democrats will regulate and otherwise impede artificial intelligence, and in particular the rollout of data centres. About 40 local votes on data centre moratoriums were passed.
Market sentiment is always a curious thing. We already knew that the Democrats were likely to win these elections. But yesterday was the day that tech investors suddenly started to focus on the downside risk.
Overnight market movements:
The FTSE is down 1.3% at 10,635
S&P 500 is down 0.2% at 7,335
Brent crude (January) is up 1% at $99.30/bbl
Gold is down 1% at $4,045/oz
Bitcoin is down 0.6% at $75,300
Ed Sheldon joins me today!
All done for today, have a great weekend!
Companies Reporting
Name (Mkt Cap) | RNS | Summary | Our view (Author) |
|---|---|---|---|
International Consolidated Airlines (LON:IAG) (£18.5bn | SR51) | Revenue in Q3 increased by 4.5% to €9,744m. Total fuel cost increased by 30.4%, net of the benefit of hedging. Operating profit before exceptional items in Q3 decreased to €1,726m (2025: €2,053 million). Net leverage at 30 September 2026 of 0.6x. 10% increase in the interim dividend to €0.053 per share (2025: €0.048 per share). Continues to expect to deliver an operating margin before exceptional items in Full Year 2026 of at least 12%. Full year capacity (ASK) is now expected to be slightly down compared to Full Year 2025. | ||
Scottish Mortgage Investment Trust (LON:SMT) (£14.8bn | SR N/A) | Revenue earnings per ordinary share up 45.2% to 2.25p. Dividend increased by 12.5% to 1.8p. Shareholders’ funds of £17,687.5m vs £13,822.2m a year earlier. | ||
Rightmove (LON:RMV) (£4.0bn | SR73) | In 2026, it expects revenue growth to be 6% to 7%, within previous 6% to 8% guidance. Underlying operating profit growth is expected to be at least 3%, within previous guidance of 3% to 5%. The company is upgrading guidance for underlying EPS from at least 5% to at least 7%. For 2027, it expects revenue growth similar to 2026 with an increase in underlying operating profit growth to 4-7% and underlying EPS growth of at least 10%. | GREEN= (Graham) | |
TBC Bank (LON:TBCG) (£2.7bn | SR91) | Q3 net profit reached GEL 404m, up 10% year-on-year, with ROE of 23.2%. Total operating income rose by 10% YoY to GEL 961m, driven by 13% growth in net interest income. Customer deposits grew by 14% YoY on a constant currency basis to GEL 27.6 billion. Well positioned to deliver the Group's 2026-28 financial targets. | ||
Chesnara (LON:CSN) (£803m | SR61) | Acquiring closed-book UK life insurance company, MetLife UK. Consideration payable is “not expected to be material”. Administration outsourced. “...adds further scale and diversification to our UK business as well as an estimated £90m of lifetime cashflows.” | ||
Netcall (LON:NET) (£226m | SR58) | Collaboration with Box, Inc. Netcall is launching a new integration suite that connects Jadu's digital services platform directly with content managed within Box. | Reach announcement (non-regulatory press release). | |
MJ GLEESON (LON:GLE) (£161m | SR43) | “Given the likely timings of the introduction of YFH and its impact on Gleeson Homes’ sales, as well as the visibility around the timing of disposals in Gleeson Land, the Board anticipates that profits will be significantly weighted towards the second half of the year with delivery of market consensus for FY2027 reliant on further improvement in buyer confidence.” | GN note: I interpret this to mean there is a high risk of a future profit warning. | |
Strategic Minerals (LON:SML) (£138m | SR36) | “The geological team… is undertaking an intense and expansive drilling programme at Redmoor… We have completed 11 of the planned 42 infill drillholes, and two metallurgical holes, whilst also collecting geotechnical samples required for future mine design studies. The Programme is on time, within budget, and delivering excellent results.” | ||
Record (LON:REC) (£93m | SR84) | Revenue +19%. Net inflows $12.7bn, AUM at new high of $130.3bn. EPS 2.84p (H1 last year: 1.93p). “Performance across the Group continues to support our expectations for the current financial year.” | AMBER = (Ed S) | |
ECO Animal Health (LON:EAH) (£64m | SR86) | Full year outlook: “Whilst the Board expects an improvement in China in H2, full year revenue for the China and Japan segment is likely to be less than half of FY26.” Weaker trading in China is expected to result in a shortfall in group revenue compared to market consensus. Adjusted EBITDA and EPS will be broadly in line with market consensus. | REVENUE WARNING (and slight profit warning) | |
Billington Holdings (LON:BILN) (£55m | SR72) | Underlying profit before tax* for FY26 will be in the range of £4.0 million to £5.5 million, which is below current market expectations (£8.3m). Reasons: previously anticipated contract profits not being recognised in FY26, and the performance of an industrial project. | AMBER ↓ (Graham) | |
Naked Wines (LON:WINE) (£42m | SR80) | Repurchasing £2m to £5.7m of shares in tender offer at 80p (yesterday’s SP: 63p). Will take into account trading performance during the peak pre-Christmas period. FY27 guidance reiterated. | ||
Lords Trading (LON:LORD) (£19m | SR46) | Revised covenant package. Challenging trading conditions persist in Plumbing & Heating. Expectations of a market recovery now delayed until later into FY 2027. Adjusted EBITDA1 for FY 2026 will be approximately £16 million. | PROFIT WARNING |
Analyst notes
A solid update from Record today with revenue up 19% and EPS coming in at 2.84p versus 1.93p a year earlier. The company has managed costs carefully leading to a big jump in its operating margin.
Today’s update from ECO Animal Health hasn’t been received well by investors and it’s easy to see why. As a result of challenges in China, the company now expects FY27 group revenue to be below market expectations.
It's unfortunate to see that both 2026 and 2027 estimates have been cut, even though 2027 will benefit from profit that has slipped out of the current year. The company's downbeat commentary on conditions in the wider steelwork and construction markets seems to have fed into lower forward expectations. Based on 2027 forecasts, the P/E ratio is now 7.5x. I don't view this as a bargain, considering the sector and the difficult market conditions, but the balance sheet does potentially offer some support. For that reason, I don't see the need for us to take a more negative stance.
I view this as a very solid update from a company of exceptional quality. Given Rightmove's unique position in the UK property market, I still consider it to be in "value" territory (P/E ratio less than 20x). The company generated £123m of net cash from operating activities in H1 alone, with only minimal investment requirements. So I do not object to them spending cash flow that is not needed for product development on buybacks.
Disclaimer
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32 comments
Has anyone any thoughts on Made Tech (LON:MTEC). The share price fell -6.48% today, can't see anything in the news or reports to explain it. I hold so would appreciate any thoughts or ideas.
Might be the cynic in me and I am being unfair but I cant recall EAH ever having put out a trading update or results announcement on a friday. Which just so happened to be dominated by world news and stock market frenzy…….
I've started a similar naps style quarterly rebalanced small portfolio lately.
Suppose starting now or 1st Jan the Coca-Cola HBC AG (LON:CCH) issue could have happened anytime.
So following the naps style rules I'm fighting the urge to sell out and instead hold for at least a quarter. Not something I've done before so it's a challenge.
My plan to pick stocks ahead of Ed's year-end selections—using a strategy similar to NAPS—backfired ( lets face it we cannot know the future so no tears here). One of the picks was Coca-Cola HBC AG (LON:CCH) though it did not the criteria I bought it anyway thinking it is a quality company on the up. It looked promising for about two days before plummeting over 15% yesterday. I held out hope for a recovery today so I could exit the position, but no such luck. I really should have followed my strategy.
Ultimately, this reinforces the importance of emotional discipline. You have to stick to your rules and refuse to alter them based on a single bad trade or a broader market dip. My own ego and arrogance have left me with plenty of financial battle scars. In the end, IMO, stock market investing reveals your true character far better than any therapist ever could.
Coca-Cola HBC AG (LON:CCH)
This is a quality company but Putin will always be Putin!
Your second paragraph is full of valid points: Retail investors will never accept that money management and discipline are more important than anything else in investing.
All the best
Hi
Ref Micron Technology (NSQ:MU) its +8.53% in pre market (as I type). Its share price is at the same level it was 06/05/26, when its RSI was over bought at 85, its MACD was positive rising. Now its RSI is touching over sold at 27, MACD falling and negative as its fallen in past sessions. A question I pose is Micron Technology (NSQ:MU) a better or worse company than it was on 06/05/26? You can compare the Stock Report 07 May 2026 to assess the changes. For example just comparing the revenues and profitability metrics throws some light on the question. Top one is 07/05/26, bottom is Stocko stats today. (I hold small position DYOR).
Regards
Howard
RE Micron Technology (NSQ:MU). I think the problem is not the company but the highly cyclical market it operates in. High Band Width memory usage and data centre rollout are the primary growth drivers, and as Graham points out sentiment has changed for tech investors. They'll be a bounce at some point soon because I don't think AI is going away (whatever the Democrats do) so it could be a good trade. Micron also have multi-year supply contracts so that gives financial stability with its somewhat monopolistic position.
Bit of air out of tech a good thing...
ECO Animal Health (LON:EAH) (I hold)
Morning Graham,
Please can you review the trading update from ECO Animal Health?
I hold it as part of my NAPS portfolio.
Thanks, Richard
yes I expect us to cover that one today, Richard! Ed Sheldon is here too. G
ECO Animal Health (LON:EAH)
todays update kinda sums up the company in a nutshell - i take the viewpoint they are too much academics job for lifestyle brigade. I dont want to over knock them sometimes you gotta leave the nerds to work their magic and that pasy dividends long term. facts are though they are only half of 1/3 of the company they were pre covid times. ok the numbers have ben slowly trending upwards but its basically 5 years in the wilderness - how long do you give a company before you say well the default seems to be that the workers simply seem happy to have their job and do their nerdy stuff.
I wont knock then potential here - clearly if they they can find their mojo upside could be great - and they could kinda hit mini jackpot that there is nice potential to muti bag - so perhaps not the worst share to be bottom fishing with if you are happy.
Just seems to be much simpler stuff to invest in where you arent gonna get bad news simply due to random worldwide events - seems like all tehn revenue they have ever had in china simply exits the door to partners or whatever (that may be unfair perhaps) - would love to know if overall they have actually got net funds out of china or not.
“you arent gonna get bad news simply due to random worldwide events”
Doesn’t seem to be too much stuff that isn’t affected by these events nowadays , wouldn’t you say rm ?
All of my holdings ( many of which I appear to share with you ) have had a bizarre few days thanks , apparently, to the US mid term elections results.
All of them( whichever sector ) have been impacted to some extent by a series of unpredicted events happening, from Covid to Ukraine, from Iran v USA to Reeves/Starmer thinking it would be a good idea to wallop business continually .
It feels to me that most of my holdings (many of which are AIM listed) simply get dragged down by the noise even if the link to the ‘event’ is not that obvious.
On the positive side, at least many of them do subsequently bounce back which hopefully is a sign of a good and resilient business.
Maybe I just need to review my portfolio diversification which may not be a strong as I thought it was and add a couple of your “simpler stocks “
ECO Animal Health (LON:EAH)
Doesn’t seem to be too much stuff that isn’t affected by these events nowadays , wouldn’t you say rm ?
You have to understand the eco business model to understand the specific risks they have - they are hugely elevated in comparison to normal stuff. they were a great buisness back in the day for whatever reason they have beena praetty terrible buisness since like 2021 - if you compare to the point they got to growing profits each year.
they have had sweet spot recently compared to their low point - so i kinda get that some wil be suckered into thinking this is sound low risk buisness that is growing nicely and trending to greater things - Meatloaf would say two out of 3 aint bad - but here the fact its high risk well that needs to be understood.
thats kinda key with every company how well will they manage when stuff goes against them - trust me when i say Eco wont always have plain sailing ref their fortunes as is evidenced by reaction today - note the actual issues today inthemsleves are huge and dont massively affect then investment proposition. they do evidence the kinda shit that can and will go wrong with this company.
Note overall i think if they keep plugging away theymay get some of the former glories back at some stage - whetehr than may be in 12 months time - 5 years time or 10 years time well thats the tricky one.
Note anyone who is surprised by the news today should be - this company has a long history of similar stuff like this .
The investment thesis hasn't changed here IMO.
Long pipeline of "de-risked " / funded medicines.
It's a multibagger, but I'm prepared to hold until 2030 to see big returns.
Yes, a lot of cash is held in China.
I'm looking out for ROW segment to increasingly contribute to revenues.
I think the company have said that too.
May be opportunities to lock in on some higher yields. Time to use some of my "warchest" once the falls stabilise.
Dicky, I am not saying don't do it but be careful. Parts of the credit market has seen spreads widen of late. There can be a lot of reasons for this but given the call on money for the AI build out and fact Private Equity has increased its borrowing in such a significant way over the past 2 years, make sure you do your homework.
Wise words my friend :) This isn't my first rodeo ... and I only invest money I can afford to lose!
It might just be a tech correction, but it will take everything else down with it. Tin hat Friday. I thought black Friday was three weeks away.
As always, these corrections create buying opportunities.
Micron Technology (NSQ:MU) PER 3.7 PEG 0.1.
Yes but Micron Technology (NSQ:MU) down 17.5% yesterday. I hold but should I sell or buy the falling knife! Not sure either way really ‘rabbit in the headlights’ There is a guy on Seeking Alpha who is extremely bullish.
https://seekingalpha.com/article/4963262-micron-selloff-is-a-once-in-a-decade-opportunity?position=must_reads_a2&pinned=false&mailingid=48292851&serial=48292851.326597&utm_source=seeking_alpha&utm_content=seeking_alpha&userid=48227410&source=email_must_reads&messageid=must_reads&sailthru_auth_param=48227410:1793912777:a4012c573a5306d55b61adaadc67d0f8&utm_medium=email&utm_campaign=Must%20Reads%20Recurring%202026-11-05&utm_term=must_reads%20-%20Root
But is he right or just pumping the stock!
Might be worth following Michael Burry's substack, Cassandra Unchained, for yin to the AI bulls' yang.
Michael Burry. Isn't he the chap that has predicted 10 of the last 3 recession?
Good film, though.
One of my fave's "dumb money " is another great film if your into financials.
Should have added I've just started the "Big Short" book the opening chapter had me at the point where the author says "I was 24 years old, trading assets and earning 400k a year I had no idea what I was doing but equally nobody else did either"
If you're enjoying Michael Lewis's "The Big Short", you should go all the way back to his first book "Liar's Poker" - even better!
Michael Lewis? Wunderbar.
Have you read The Trading Game by Gary Stevenson? I just finished reading it for the third time. I never stop learning.....
That's him. He's a bit pessimistic but I value him as an antidote to all the AI "to the moon and beyond" hype.
Micron Technology (NSQ:MU) down 17.5% yesterday
There is a guy on Seeking Alpha who is extremely bullish.
well thats the issue aint it - stock has gone up tenfold in 3 years - you are bound to have some idiot saying its gonna carry on shooting lights out. my opiniojn here is tehn only clever (lucky?) oen are the people who have made the money on the way up - now we are kinda at "peak AI investment bubble time" is that when thne clever money is moving on elsehwere.
Is micron anything other than a box shifter ? if they are are you confident that uner supply wont turn into over supply.
I am not negative micron or any of these stocks - but this is a company right in the middle of a huge purple patch - other than having the facilities to churn out volume i dont know know if they have then ip in the same way that indivia obviously do.
imho for stocks like this that have gone up tenfold - where does the risk lie - is it more likley to double again or could it be that fivefold increase would have been more realistic (or worse)
with these companies you really want that competitive edge.
Even robots need memory, so don’t have to compute how to walk every second. Long MU. One day supply exceeds demand, meantime they are pulling in cash.