Nick Raynor, investment adviser at The Share Centre, gives his thoughts on the companies announcing results this week (w/c 18 April 2011).    

Tuesday 19 April 2011

Burberry (BRBY.L) - Trading statement

Burberry has taken a hit recently as incidents in Japan have had a negative effect on the share price. Uncertainty still remains and continued after shocks are still having a profound effect on the company's value. There has also been a great deal of bid speculation surrounding the stock which we believe has been factored in, hence why we still recommend investors ‘sell' Burberry. If the update issues some surprises then we may alter our stance, however we believe this is unlikely.
SELL.

Reed Elsevier (REL.L) - Interim management statement

Currency rates have been the main concern for brokers in relation to Reed, rather than how the company has been performing. With so much exposure to the dollar any weakness in the currency could have a negative effect on what would be good figures. This is a tentative ‘hold' for now.
HOLD.

SABMiller (SAB.L) - Fourth quarter trading statement

SAB Miller is looking to further its already vast international exposure by increasing its investment in the Sudan. It is rumoured to be bidding for Brazil's second largest brewer Schincariol, with a price tag of $2 billion. Although this may make a few punters spill their beer the company can easily afford it. Retail figures have been much weaker in 2011 so it will be interesting to see if consumers have been drowning their sorrows or avoiding drinking establishments. These figures will hopefully give some clues.
HOLD.

Tesco (TSCO.L) - Full-year preliminary results

Supermarkets have not been issuing the best of figures recently, however Tesco has a massive overseas exposure that should mean it shows some signs of improvement. Tesco has now added gold buying to its services and is looking to break into the second hand car market. If figures do not meet expectations though we will expect weakness on the share price which we feel should be seen as an opportunity to buy. We also hope to see an increase in the dividend.
BUY.

Hargreaves Lansdown (HL.L) - Interim management statement

We are expecting a positive update from Hargreaves as financial markets have been strong during the last three months. This would be especially nice as it is their first update since entering into the FTSE 100 in March. The update in February noted a record level of performance and anything less this time would be a big disappointment.
HOLD.

Wednesday 20 February 2011

Reckitt Benckiser (RB.L) - First quarter results

Reckitt Benckiser has had a turbulent year to date and the share price fell as much as 20 per cent at one point. As consumers look to change spending habits we have recently downgraded the company to a ‘hold'. However, we will be looking to review this when these results are issued. We like the company as it offers a steady dividend and has been a sound player in the past.
HOLD.

Thursday 21 February 2011

Anglo American (AAL.L) - First quarter interim management statement

Miners have been having a good time of it lately as commodity prices continue to soar. However, costs are starting to rise and it is becoming more expensive to extract as oil prices rise and at present are showing no signs of stopping. Also production levels are nearing maximum capacity and therefore any further increases of production will require massive outlay, which may not be deemed a sensible idea at the moment.
HOLD.

Autonomy Corporation (AU.L) - First quarter results

These figures will hopefully shed some light on Autonomy's next step and where the share price is moving to. According to the company many analysts do not understand the business, however if there was more clarity available then this issue could be resolved. Until such times we retain our view to ‘sell' as the price looks overvalued at present. These results may prove different, although we feel it is unlikely.
SELL.