Nick Raynor, investment adviser at The Share Centre, gives his outlook on companies reporting this week (w/c 17 January 2011).

Tuesday 18 January 2011

Burberry - Third quarter trading statement

Retailers have had a disappointing Christmas with bad weather blamed for shoppers staying away, but the luxury goods market may not have been affected as badly as others. Burberry's share price has been high recently because of rumours of a potential takeover. It is this high share price that has kept it as a ‘sell' for us, however this update may prove us wrong.
SELL.

Experian - Third quarter interim management statement

Experian's share price has been bolstered and stabilised by the large buyback scheme the company is currently undertaking - since December nearly 2 million shares have been purchased and cancelled. There has not been much information from the company recently, so we hope that this will fill the void. Experian's overseas exposure is our attraction to the company, one for growth seekers but not for income.
BUY.

Pearson - Full year trading statement

Pearson is set to expand its international exposure by opening 50 new English language centres in China, in addition to its 66 language schools already operating in the area. This is to be conducted over several years and not rushed. Pearson are also looking to translate more of its popular ranges into foreign languages and Arabic is the latest to be looked at. Pearson has had several upgrades recently and we hope this update will continue to justify our ‘buy' recommendation.
BUY.

Wednesday 19 January 2011

Land Securities - Third quarter trading statement

Land Securities is now reaching a two year high as recovery within the property market continues to amble on. However, some believe this may soon be coming to an end and that London office rates are due to peak. Having said that, the yield is very good and there could be consolidation within the sector this year. The statement should make interesting reading.
HOLD.

ASOS - Third quarter trading statement

High street retailers have suffered over Christmas and ASOS investors will be hoping those with an on-line presence will have fared better. It is also possible consumers may have had concerns over whether or not purchases would be delivered on time, and this may have had an affect. This update is very important to show how ASOS has coped and the market is confident as at the time of writing the share price has hit an all-time high of over 1,600p.
BUY.

Thursday 20 January 2011

Man Group - Third quarter interim management statement

Takeover rumours still hover around Man Group and it was no surprise that at the start of the year Nomura included the company in their lists of top 30 takeover targets of 2011. This interim statement will hopefully give some indications of how Man Group's recent acquisition is being integrated and also of how the company's main AHL fund is performing.
BUY.

United Utilities - Interim management statement

It has been very quiet for utilities companies recently, especially those that do not have exposure to Northern Ireland. Interestingly this is another stock mentioned on Nomura's list as UK utilities have always been attractive especially for European companies. We certainly think that somewhere in the sector there will be consolidation, but who and when is not known. This update will hopefully just note that leakages over the winter were not too bad and that United Utilities is on track to meet market expectations.
HOLD.

Invensys - Third quarter interim management statement

December saw Invensys deny reports that a Chinese rail group had or was about to make an offer for the company. Results in November were reasonably positive and it's clear why the company want to rebuff any approach. Invensys has plenty of cash and also growth in earnings. A good hold for now.
HOLD.

Tullow Oil - Trading statement

A recent update from Tullow Oil about drilling operations was released with mixed results. Its operations in Uganda continue to go from strength to strength, as so far 36 wells have been drilled and oil has been found in every one. So far 1 billion barrels of oil is the estimate and Tullow Oil believe there is a further 1.5 billion to be found in the area. We do not expect much to be released within this update, just conformation of current operations and that flow of oil is expected.
BUY.