Daily Stock Market Report (Mon 16 June 2025) - AGR, PEEL, COST, ENT, ART, ONDO, TMG, CPH2, NESF, SSTY, TRD, SBTX

Mon 6:01am by Graham Neary

41 comments 4933 reads

Good morning!

Despite ongoing political/military events, the FTSE is set to open unchanged this morning at about 8850.

12.15pm: it's a clean sweep, as we've covered all of the day's news! See you tomorrow.

Spreadsheet accompanying this report: link.

Companies Reporting

Name (Mkt Cap)	RNS	Summary	Our view (Author)
Entain (LON:ENT) (£4.8bn)	BetMGM - Upgraded FY2025 Guidance	SP +9% to 824p Entain’s US JV expects FY25 Net Revs >$2.6bn (prev $2.4-2.5bn) & EBITDA >$100m (prev “positive”) BetMGM is a 50/50 JV with MGM Resorts International (NYQ:MGM), so my reading of today’s update is that it should add c.$50m of EBITDA to Entain’s FY25 group results.	AMBER (Roland) [no section below] Forecasts I’ve seen prior to today have suggested that Entain is expected to generate EBITDA of c.$1,100m this year. This suggests today’s upgrade could be equivalent to a c.5% increase to full-year estimates. The positive operating leverage implied here (the extra revenue has largely dropped through to EBITDA) suggests to me that BetMGM could report further improvements in profitability if revenue continues to rise. However, Entain’s profitability as a group has been poor in recent years and the shares were already trading on nearly 17x forward earnings prior to today’s gain. Net debt is also a little high for my liking. The algorithms view this as a Momentum Trap. I would want to see evidence of improved profitability and deleveraging before taking a positive view.
Assura (LON:AGR) (£1.6bn)	Statement re offer by PHP	Assura’s board are reviewing PHP’s offer document and they assure shareholders of their objectivity.	PINK (Roland) [no section below] Assura’s board recommended KKR/Stonepeak’s cash offer last week, but PHP issued full offer documents and a detailed discussion of its offer on Friday, pointing out that at that time, the PHP cash/shares offer was worth 53p, slightly more than the KKR/Stonepeak cash offer (52.1p). Assura’s board now seems keen to reassure shareholders that the PHP offer is getting a fair hearing. Regardless of which offer succeeds, competition for AGR’s assets has most likely pushed up the price shareholders will receive. I share Graham’s view that it would be nice to see this business continue as a UK-listed entity as part of PHP, but there’s no doubt that would also be the more complex deal to complete.
NextEnergy Solar Fund (LON:NESF) (£404m)	Full Year Results	NAV -9.2%…

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jamesalastair

Mon 1:39pm

Thought this little comment from the CEO of NVDIA was of interest. I am no expert on AI, so found this surprising.

"U.K. has one of the richest AI communities anywhere on the planet. The deepest thinkers, the best universities—Oxford, Cambridge, Imperial College. Amazing startups. I ..The U.K. is the largest AI investment area anywhere else in the world. Between these two ideas that you are rich with great computer scientists, it is a fantastic place for VCs to invest. The ecosystem is really perfect for takeoff. It is just missing one thing. It is surprising. This is the largest AI ecosystem in the world without its own infrastructure, which is the reason why we are talking about it so much." – Nvidia ($NVDA ) CEO Jensen Huang

Harry Hindsight

Mon 2:29pm

And Unicorn droppings.

With Rockhopper Exploration (LON:RKH) we could wipe out the national debt, make industry competitive and all in a land “far, far away -so politically and environmentally out of sight and mind.

Perhaps Shell (LON:SHEL) will buy them and move operations to the US.

In meantime I’m watching silver as goes into all these Chinese solar panels.

carmensfella

Mon 2:37pm

Hot off the heels of our excellent Mello2025 event in Chiswick last week, tonight we will be hosting our first online MelloMonday of June.

We will have a keynote kick off the show, followed by three company presentations and all rounded off with our popular BASH panel.

The full line up is as follows (subject to minor change):
5:00pm Keynote interview with Gervais Williams
5:30pm Company Presentation from Artisanal Spirits (LON:ART)
6:00pm Company Presentation from IP (LON:IPO)

6.30pm Mello 2025 review and company news

6:40pm Company Presentation from Seraphim Space Investment Trust (LON:SSIT)
7:10pm BASH (Buy, Avoid, Sell, Hold) with Richard Crow the Cockney Rebel

You can register for our webinar here: https://www.melloevents.com/mm...

Use code: MMSTOCKO50 for 50% off tickets

Please note, if you are a shareholder for any of the companies above, you are entitled to a free ticket with code: SHFREE

David

boringchess

Mon 2:46pm

Wasn't this Jensen on stage with Keir trying to persuade him to pump money into AI? We are a great country for doing AI research but a terrible country to run the actual servers... Host them in the cheapest place you can find (we are perhaps the most expensive in the world)

Epitychia

Mon 2:47pm

Interesting comments here.

Teaching in a university, we have an enormous problem with AI generated work. Students type in a target mark because they have learnt that otherwise the work is 'too good'. This shows the power it has, it does appear to create original work. We can argue what original means but didnt Newton say he stood on the shoulders of giants, so even a genius does incremental work.

Sam Altman obviously talks his own book, but he has been fairly accurate over the last 5 years. He knows what is in the lab now, which will be public at the end of this year.

Rusty2

Mon 3:12pm

I see 2 directors at Brickability (LON:BRCK) have sold 4m shares, hence the share price drop. Time to sell?

andrewdb

Mon 3:16pm

Guy who sells AI hardware tells UK that all we need to succeed is lots of AI hardware.

Perhaps someone should tell him about remote access.

JimMcLad

Mon 4:09pm

Why ? REVS8 just topped up https://www.stockopedia.com/co... and I'm holding on.

Mon 4:12pm

Maybe they know something? I have followed large director sales, in the past, which has saved me from falls. Profit warning at Ibstock (LON:IBST).

Bouden54

Mon 4:13pm

They still have big holdings - don't know their financial situation but could well be the case they have most of their wealth tied up in this company and want to diversify a bit. Would you want to have 90% of your portfolio in one share?

Mon 4:14pm

Sounds like asking a barber if you need a haircut.

The Boon Fund

Mon 4:18pm

There is the still the existential question for both Cavendish (LON:CAV) and Peel Hunt (LON:PEEL) about IPOs, and stable/growing number of listed companies.

Peel Hunt is expanding to Abu Dhabi. Cavendish expanded to Manchester...

There is, at least, a very buoyant secondary fundraising market, as well as debt restructuring and private market still, that Cavendish reported on in its last update.

Furthermore, I see Cavendish have increased their headcount by about 4-8% over the past 6 months, and they were the ones with a bit more cost discipline in their latest results, so this maybe signals there is demand in some areas of business, just not in IPOs yet.

Cavendish's share price has already recovered 20-30% from its lows earlier this year. So the market is pricing in some earnings recovery already...

But my price target here is well north of 20p from the 11p currently, so I continue to hold.

Camtab

Mon 4:35pm

If I had inside information and I was happy with what I saw YES!

Mon 4:39pm

I doubt he has 90% in Brickability (LON:BRCK) he sold over 10m in 2021 at 95p. This is the largest sale since then.

rmillaree

Mon 5:04pm

Brickability (LON:BRCK)

i wouldnt necessarily be selling - but lets be honest these are chunky share sales. this is the exact kind of company where management have much more information at their fingertips than we do. My slight worry here was how sustainable the profits would be at the units they acquired for lots of wonga - they were making boerdline ludicrous profit margins that one would expect would bring in more competition long term and wouldnt be sustainable.

PH still holds 16 mill despite 3 million sell - so i think perhaps in isolation this sale might be perhaps viewed as sensible diversification - but could this be the start of more selling to come ?

If PH has done very well from prior share sales and doesnt need the money as seems to have been suggested then timing isnt exactly great ref sale. Particularly if he made real wonga at higher price - if he doesnt need the money and has faith why is he selling at price others here think is dirt cheap.

I guess only time will tell here and even then reason for sale could be genuine.

Mon 5:40pm

You can have all the inside info about the company, but ultimately a lot will depend on the macro and industry situation, especially for this sort of business.

Mon 6:05pm

Ask Ed Millibund why. Global leader in net zero and useless aircraft carriers.

Once we ruled the waves, now Dover is open season.

Mon 6:09pm

Once the sun zealots move on from net zero they will figure out its water that sustains life. Plants eat CO2 so water and sun good - zealots bad.

Mon 9:11pm

Students are probably the cutting edge of AI - if nothing else its proving their ability to be adaptable if they use AI as much as possible without "cheating" (or getting caught if they chose to cheat) - how much work they put into that i know not. I remember at college with one particularly tricky programming task - 80% of students got deduction for plagarism including the poor bod who was clever enough to know what to do and told one or more people who must of told everyone else - at it was a very complex task. I seem to remember i needed help but wasnt silly enough just to copy what someone else did - most did though.

I guess the lazy one are more likely to stand out ref AI - although like everything else its an intelligence test to a certain degree - those that are talented will get away with it and those that struggle may look like they have ben lazy. Hopefully the clues are there for the dilligent marker

Personally i am amazed how far we have come in many respects since the 70's tehc wise and AI in particualr has come out of nowhere - albeit its reasonably obviuous toa certain degree its just brute force logic at work rather than true thinking. Then again with soem things we havent progressed as all - so probbaly enough for all sides here to be able to backup their viewpoint.

Personally i view automation AI as a good thing - i remember my mate used to load up and empty floppy disks by hand for a living on 12 hour shift not something you would want your worst enemy to do - not helped by his mate a qualified engineeer sleeping through most of the same shift when the machines were working.

If ever there was a tool to make communism work AI and automation is the dream really - perhaps one day one country will get rid of money and get that licked - output enough for country and simply give everyone decent basics and reward those that contributing to society by giving them the bonus perks. Hmmmm that always goes wrong in the films though doesnt it - no pleasing folk i guess.

NeilS

Mon 10:24pm

Possibly because they are disposing of revenue generating assets to reduce the debt and pay divs?

Daily Stock Market Report (Mon 16 June 2025) - AGR, PEEL, COST, ENT, ART, ONDO, TMG, CPH2, NESF, SSTY, TRD, SBTX

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Graham Neary

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