What You Need To Know
01/12/2005
Is it too early to look for trends for the New Year? What do we need to know in these first few days of the year? Trends often change at the start of the New Year, sometimes for no other reason than the psychology of a New Year.
Shire Pharmaceuticals and Reuters are leading the way so far this year on the FTSE 100. The Shire trend is strong (although due for a short-term
profit-taking fall) and way off its highs of several years ago suggesting the upward potential is not unknown.
Reuters has quadrupled in 18 months. It would quadruple again before hitting all time highs. Given recent positive press coverage, whilst that will not happen in 2005, the year looks good for the news company.
Dixons, even before results was one of the early New Year best performers. Looking for it to hit 180p in the short term seems likely - quick short-term profit.
Momentum
Looking for the pure momentum price plays, ignoring value and growth for a moment the strongest trends are in the following and are worth examining: Punch Taverns, Bradford and Bingley (ready for some short-term profit-taking).
Value-Growth
On my value growth criteria which are based on stocks meeting revenue and profit growth and good value based on criteria such as price earnings growth, the following names come up. Remember they are for a 6 month outlook: Eurmoney, Gooch & Housego, DTZ, Marchpole, Royal Bank of Scotland, Speedy Hire, BHP Billiton.
Bids
For those who like to look for bid candidates - here are my estimations: lastminute.com, Avis, Compass, and a complete wild-card - AstraZeneca!
Crazy Small Stock
These are high risk volatile stocks which could move sharply higher or move sharply lower in my view, but will almost certainly not stand still. Names on the radar include: Bisichi Mining, Safeland, Sportech.
Also, if you would like a free multi-media CDROM on 'Investing Better' posted to you then drop me an email with your postal address to alpesh@tradermind.com.
Spreadbetters
Spreadbetters and futures traders often look at hard and soft commodities. Here's my quick take on the action for the week ahead:
- Oil: Higher
- Copper: Mixed to higher
- $/£: Mixed
- Dow: Lower
- Gold: Mixed
- FTSE 100: Lower
- Soyabean Oil: Mixed to lower
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