Nick Raynor, investment adviser at The Share Centre, gives his thoughts on what to expect from companies announcing results this week (w/c 30 May 2011).

Wednesday 1 June 2011

Northumbrian Water (NWG.L) - Preliminary results

This fine utility company has promised to maintain dividends above the rate of inflation. We hope this statement will tell us how long the company intends to continue with this dividend policy, as well as producing a solid set of figures. We expect interesting times ahead for the sector as there has been a large amount of speculation in the press as to whether Northumbrian Water will be the next utility company takeover.
BUY.

Wolseley (WOS.L) - Third quarter results

Performance has been steady so far this year, however some brokers have noted that times are starting to get tougher for Wolseley and have recently downgraded their recommendation. Financing constraints are impacting the company's ability to grow and weaker labour markets could also have an effect. These figures need to inject some spark into the share price, otherwise we expect to see a slow and steady decline in the offing for Wolseley.
HOLD.
 
Thursday 2 June 2011

Kingfisher (KGF.L) - First quarter trading statement

There are heavy expectations for this update to be the most positive in three years. The early spell of warmer weather should be the main driver along with improving overseas sales and lower losses in China. B&Q sales should have improved and Kingfisher has taken the option to buy up to 31 leases of the ex-DIY chain Focus to convert into its own brand.
HOLD.

ASOS (ASC.L) - Preliminary results

Positive figures are expected in this update and anything less will not please the market. Other major retailers have noted that Internet sales have improved significantly and a change in consumer trends means traditional browsing has been replaced by shoppers staying at home and only buying what they want. ASOS should therefore be a main beneficiary as it has been in this business for years. The Royal Wedding should have also benefitted the company as there is a new princess for consumers to follow. It is also worth noting that Bestseller has built up a significant stake in the company.
BUY.

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