Daily Stock Market Report (Fri 9 May 2025) - RMV, OCN, BAKK, ARB, SHED/LMP

Fri 6:03am by Graham Neary

34 comments 3805 reads

Good morning! Welcome to Friday's report.

The Bank of England cut rates to 4.25% yesterday, as expected. Of greater interest than the decision was the composition of the vote, with the Monetary Policy Committee unable to present a united front: five of the nine members wanted the rate cut, two wanted a bigger cut, and two wanted no cut at all.

12.55pm: wrapping it up there as news flow is light today, have a good weekend!

Today's Agenda is complete.

Companies Reporting

Name (Mkt Cap)	RNS	Summary	Our view (Author)
AstraZeneca (LON:AZN) (£157bn)	Imfinzi improved disease-free survival (bladder cancer)	“Statistically significant & clinically meaningful improvement in disease-free survival”
International Consolidated Airlines SA (LON:IAG) (£13.7bn)	Q1 Results & 53 new Airbus and Boeing aircraft	2025 outlook unchanged. New aircraft to grow/replace long-haul fleets. Delivery 2028-2033.
Rightmove (LON:RMV) (£5.8bn)	Trading Statement	Guidance unchanged. Expecting 8-10% rev growth. ARPA growth plus 1% membership growth.	AMBER/GREEN (Graham holds) There is nice product-led growth in the short-term but even so, it must be getting close to fair value. Momentum now driving it higher - will it go through the price at which REA was willing to buy it?
Bakkavor (LON:BAKK) (£1.05bn)	Extension of PUSU deadline	More time needed for discussions with Greencore (LON:GNC) and “mutual confirmatory due diligence”.	PINK (Graham) [no section below] As noted in April, while I'm supportive of this deal in principle, I am a little concerned about how it will be financed. There is also supposed to be an option included in the deal for Bakkavor shareholders relating to their US subsidiary, which I thought could be legally complex. My assumption is still that this deal will go ahead.
Urban Logistics Reit (LON:SHED) (£677m)	Recommended Offer	Londonmetric Property (LON:LMP) offers .5612 new LMP shares and 42.8p cash for each SHED share. Total value 150.3p, a 21.8% premium to the undisturbed SHED share price.	PINK (Graham) [no section below] The two companies have been discussing this for the past month, and today the details are provided. As of now shareholders representing only 6% of SHED have provided undertakings to support it, so it will depend on further support. I note that the current SHED share price (152p) is slightly above the value offered - suggesting to me that at least some SHED shareholders believe…

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yiannos1

Fri 9:18am

Nice to see some sense here.

All the best

Harry Hindsight

Fri 9:58am

The state can’t afford to fund loss making net zero ideology so they want to nick it from our pensions and give it to the Crown Estate for more Chinese windmills.

boringchess

Fri 10:13am

They should try to make the market too good to resist, not force people to invest.

If we want to "encourage" people to invest, I would think about auto enrolment (with easy opt out) of some small % of earnings that goes directly into a shares ISA in a globally diversified fund with a larger UK holding than usual (maybe 25%). Might have similar success to the auto enrolment pension and start to sort out one of the fundamental problems (the lack of UK people compared to US that invest in equity)

EdmondJ

Fri 10:18am

Re. Rightmove, "over 80% of consumer time spent on UK property portals" - I wonder if people are as despaired as me, how dysfunctional the platform has become in recent months? Property searches eliciting random prices, like a £75k flat under a £3.75m mansion despite putting in specific criteria. It's a time-wasting jumbled up mess, I've been in touch with Rightmove support over, for two+ months - they acknowledge the problems but can't seem to resolve. On three separate devices hence nothing to do with one in particular. Also a communication to an agent via Rightmove over a viewing appointment did not get received. I have shifted to On The Market and on the basis of my recent Rightmove experience (also the support side) would not touch shares with bargepole.

Mark Tughan

Fri 10:32am

Another interesting acquisition by Brave Bison (LON:BBSN) announces, prompted by "press speculation". A completion announcement followed so it's done. I won't repeat all the info in the announcements save to say it's funded by it's cash pile, some debt (from a facility of up to £10m) as well as a placing (existing and new) and a strategic investment by the acquired company's founder. I like that last bit as it seems to suggest he's comfortable rolling over with BBSN paper. I'm also comfortable with some debt now, particularly as rates are falling.

No new broker notes/research yet but the fact it's completed suggests it was almost done and then started to leak, so hopefully there will be an update to forecasts shortly.

Brave Bison (LON:BBSN) is building credibility (IMO), and of course profits, with this purchase "increasing the enlarged Brave Bison pro-forma Adjusted EBITDA by 78% to £8.0 million".

Prior TP was 4.7p (Cavendish). This should nudge it higher.

I hold.

Joe Turner

Fri 10:38am

They haven't completed the acquisition of MiniMBA. Today's completion announcement is for the acquisition of the Fifth Group, which they previously announced in April. They just said today that they're in early stage discussions for purchase of MiniMBA.

Fri 10:42am

apologies Jo (and all) - my mistake. The Mini MBA deal is in exclusive negs until 19 June, so this is not in fact nailed down.

Graham Neary

Fri 10:52am

I have now looked at OCN, Fred/Yiannos!

JSLDUK

Fri 11:30am

Card Factory (LON:CARD) on day of trading announcement a few days ago, think share ended day 4.5% down then today on, no news (that I can see) share trading 6.5% up……..

timarr

Fri 12:17pm

RE: Urban Logistics Reit (LON:SHED)

I note that the current SHED share price (152p) is slightly above the value offered - suggesting to me that at least some SHED shareholders believe more value is possible.

Hi Graham

The deal also means that current SHED holders get the as yet unannounced next dividend, expected at 4.35p, so I think the current price indicates the deal is likely to go through at roughly a 6% discount to NAV.

Londonmetric Property (LON:LMP) price has risen slightly today as well.

Bouden54

Fri 12:19pm

I can see a lot of pushback and negative headlines if pension funds forced to invest in UK equities. Surely better to provide some sort of incentive/small tax advantage to encourage them. They also need to get rid of stamp duty on share purchases, but that's probably unlikely.

Fri 1:19pm

Thanks very much timarr, edited the table to reflect this.

Ocean Wilsons Holdings (LON:OCN)

Special thanks to Graham for having a look at this.

Fair analysis as always.

bohenie

Fri 2:47pm

Isn't the fact that there is tax relief for money going into a pension and no tax taken whilst invested in the pension enough incentive ?

FREng

Fri 2:48pm

Paul Scott commented after the TU that Card Factory (LON:CARD) is worh £1.50 in his opinion. I hold.

charlie51

Fri 2:52pm

Mello 2025. Downing and its dealings with small caps should come with a wealth, health and trust warning.

Fri 3:32pm

Impressed Paul’s words can impact a stock so much of a reasonable sized company!! I hold so am grateful for his positive impact!

Silver Moon

Fri 3:39pm

Am pleased to hear Card Factory (LON:CARD) is going my way.

Fri 4:32pm

Just wanted to highlight that The Week Ahead has been published for next week:

https://www.stockopedia.com/co...

Rob3

Fri 4:54pm

Cockney Rebel was also positive in his Substack note today

Daily Stock Market Report (Fri 9 May 2025) - RMV, OCN, BAKK, ARB, SHED/LMP

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Graham Neary

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