The Week Ahead: 2-6 December (OMG, FRAS, TET)

29th Nov by Megan Boxall

32 comments 3600 reads

Good afternoon and welcome to the Week Ahead.

After a successful trial run of this concept back in the summer, we have decided to bring it back on a Friday to give you the whole weekend to digest and prepare for the upcoming week in the markets.

We also thought it might be a useful home for all your weekend discussion about stocks and market news. Do get in touch via the comments to let us know any companies that you are especially interested in or that you would like us to take a closer look at.

The week in review

First up, a quick re-cap of what you might have missed in the week just gone.

The FTSE is looking to close the week pretty much flat. At the time of writing it is up 0.18%. The US is heading towards a +1% close and European indices are down 0.4%. The Nikkei has closed 1.5% down.

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At Stockopedia we’ve covered the results or news of 28 companies. You can read back over all of our analysis via this link.

There has been a real flurry of interim reports this week with mixed fortunes. A couple of highlights for me:

Cranswick (LON:CWK) - the UK’s biggest pig breeder continued to live up to its expectations as an impressive compounder. For investors looking for reliably growing companies which can deliver over the long-term, this is an interesting option.
Benchmark Holdings (LON:BMK) - which managed to sell its genetics division for £260m. Equivalent to what the entire market cap of the company was prior to the announcement of the acquisition. The company is going to get all that cash from the transaction, but the market cap is still only £288m. Surely it is worth more now?

Over in the US, the business news remains hinged on the latest updates from president-elect Donald Trump who this week appointed ex-hedge fund manager Scott Bessent as his Treasury Secretary. It’s a move that has been seen as generally positive for global markets. Mr Bessent seems like a moderate choice and someone who is unlikely to force through massive trade tariffs. Although Trump did also confirm this week that tariffs might be ready…

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dscollard

2nd Dec

I like the process ..have been doing similar for a while

I run weekly comparisons across the major indices but also map to major commodities and bonds for a broad intermarket correlation pov. Given UK bourses weighted almost 20% by oilers and miners so heavily correlated to the underlying

FTSE250 did well on the week + 1.1% helped by an easing in yields so REITs, Retailers did well though DLGs +45% move on a to did skew a bit

Also run a week ahead, few extra names in the below (they are coloured by bullish/bearish orientation based on a technical scoring schema deep red "bearish" -10 to bright green "bullish" +10 ) - online/interactive weekly earnings calendar here

jamesalastair

Very nice.

WarrantStar

Well done! That's quite a set up! Viewers on mobiles will unfortunately have no chance of seeing the details, but if viewers are on a windows laptop, then they can right click the image and select "Open image in new tab" It must take a lot of work to create these visual representations, but the big benefit is that they are very quick to read and understand once you have got used to them.

Thanks, took a while to build but now only moments to run - uses off the peg data viz from Power BI :

I do a good bit of top-down type analyses and intermarket as well as sector rotation stuff- it turbo boosts bottom-up picks when they are aligned

Indie

Lululemon Athletica (NSQ:LULU) jumped out at me from the US column following a conversation with a 22-year-old female who'd just shopped there for the first time (in Sydney, Australia) and wanted to buy everything in the shop - good quality, great design but expensive. She also observed that its customers are Gen Zs and Alphas, which I interpret as 'people younger than her'.

As a result, I've added it to my 'Watch to buy' folio to see how it moves around the upcoming report on Thursday, bearing in mind that full shops don't necessarily mean sales don't necessarily mean profits. But might. Stockopedia analysis welcome...

Logical David

Hi WarrantStar, I agree dscollard's work looks impressive. FYI, I have no problem reading all the information on my mobile phone I just rotate the phone from portrait mode to landscape mode and then pinch zoom to read even the tiniest of detail.

Hi dscollard, is this something you are looking to publish every week, very concise and appreciated??

David.

Rusty2

Lululemon Athletica (NSQ:LULU) I thought that type of clothing was going out of fashion?

I have heard about it before but never owned the shares.

The chart looks good but growth forecasts are modest.

intuitive6191

Over the weekend was anyone struck by the unrelenting negative news flow re the car industry and its possible implications for contractors, suppliers and distributers?

Nissan was reported as being as being in some difficulties and the the BBC now reports that the CEO of Stellantis has resigned a few days after the announcement of the closure of the Luton van plant.

This news isn't just about the state of UK markets as both companies appear to have difficulties abroad, They are however significant employers and a further loss of manufacturing in the UK would be a significant blow.

The car finance problem is another issue which made news again. Moodys were reported as saying the worst case scenario the recent court judgement could in a worse case scenario cost £30 billion pounds.

Even in todays world of huge figures, this seems ridiculously excessive. The major players in car finance have recently announced provisions which fall well short of this figure.

Can anyone add any detail to this £30 billion figure and how it is calculated?

Thank you. I appreciate the feedback... have developed these over thd past decade I guess..sn evolutionary process

I post these and similar grabs from my research on X @ runningprofits here X LINK

These are drawn from fully interactive data visualisation reports ( which have a lot of the trading logic and correlations encoded as these power the analyses) these I publish on runprofits.com. I am planning a weekly email of a number of key plots including sector rotations, short interest trends etc .... link here if anyone wants to sign up... I don't market/affiliate/sell so you'll only get what I send ... assuming I get enough interest

StrawberryDreams

The US market turned on it violently a while back, but there's been buying of the shares again lately.Its gear is very pricey so the margins are great i'm sure.No idea how teenagers could afford it though... maybe wealthy parents?I always assumed it was younger working, urban women who wear it as athleisure and not just to the gym.No idea why say Under Armor that does similar gear, but maybe not so women focused i think.., hasn't comparatively performed well really.It must be the power of the brand i'm guessing, although i did watch an interview with the founder and he's super into athletic clothing and not just making money.They're doing something right.We have Gymshark here as a homespun 'gym clothing' brand but it's not yet listed.

JSchoffer

I've been a shareholder since the price dipped to $250.

My partner is part of their main customer base, young woman into fitness who doesnt mind spending more for quality gear. Having sampled numerous alternatives she keeps going back to lulu for their superior design and longevity. In the wisdom of Peter lynch I took this as a stock tip.

'We study billionaires' did a great podcast on lulu - available on YouTube - in which they explore the branding and unique approach. You can only buy lululemon gear from their own shops or their online platform which means they can protect against outlets offering high discounts and can guarantee customer experience (all lulu shops are almost identical). They have also ventured into menswear and more casual clothing which you can notice in the shops as you see a lot of males buying goods.

Lulu can command a premium and target a young professional crowd which are happy to spend more on quality goods and know they wont get caught out with flash sales undermining the price elsewhere. Great joggers, even better stock!

3rd Dec

Chip Wilson left in 2015 following some controversial remarks. Apart from owning shares he has nothing with the company. Here is an article: https://www.independent.co.uk/...

Plinkut

Really good stuff, I've signed up, thanks dscollard

Wed 7:32am

Why is this post always at the top of all the posts, on the discussion section. It is like a sticky.

Says it was added 15 minutes ago.

I have posts listed by latest comment.

Oliver Cooper

Wed 9:21am

That is correct. This post has been pinned so it will appear at the top of the discussion forum.

Wed 9:22am

Why?

Rather see the latest posts at the top.

DaviStoVest

Wed 11:40am

I can see the case for keeping this thread, which sets out the week in prospect, at the top for the duration of the week to which it refers. It then provides an anchor for further related comments and observations as the week actually unfolds. It saves on opening new threads for possibly quite brief discussions.

Revs8

Wed 8:57pm

Glad you asked Rusty. I was wondering what was so interesting in here. Turns out that’s not why it’s top.

Surely the daily report should be top. It doesn’t make sense for “The week ahead” to be top at the end of the week. It’s out of date.

For me the WOSS thread is the first I read then the daily report.

Thu 1:39pm

Coinbase Global (NSQ:COIN) Robinhood Markets (NSQ:HOOD) (Memecoin trading (coins ex Bitcoin and Ether pretty much) is still a large part of Coinbase Global (NSQ:COIN) 's trading volume and revenue makeup and Gensler was litigating against the crypto industry including Coinbase regarding this). Crypto past 100k.New crypto friendly SEC chair nominated after Gensler leaves in January, who was an SEC commissioner during Bush junior's time.

They''re always innovating with new products such as 24/7 trading at Robinhood Markets (NSQ:HOOD) ,various new option products such as 0dte etc...Although as a Hargreaves Lansdown (LON:HL.) account holder, i have noticed some jazzy new javascript/React perhaps (?) interactive income statement/balance sheet functions.Also fx fees seem to be coming down.,. i haven't checked but it seems cheaper to trade US shares now.Not a big trader.. partially due to the fx fees.But too lazy to change to another broker!

Thu 10:37pm

Great results. Beat expectations and raised guidance for 2024.

Shares up 7% post market

The Week Ahead: 2-6 December (OMG, FRAS, TET)

The week in review

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Megan Boxall

32 comments

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