Nick Raynor, investment adviser at The Share Centre, gives his thoughts on what to expect from companies announcing results next week (w/c 11 July 2011).

Wednesday 13 July 2011

Marks & Spencer (MKS.L) - Interim management statement

All retailers have started sales earlier this year and we hope this update will show how the tougher market has affected the big retailers - just how badly or strongly have they been performing? Marks & Spencer is seen as a bellwether for the industry and the market will be analysing this update closely.
HOLD.

Burberry Group (BRBY.L) - First quarter trading statement

Luxury goods have surprised the market and continue to be a preferred sector for investors. Burberry's overseas presence has helped to shake off lingering consumers concerns as certain demographics are becoming more affluent. We recently upgraded the company to a hold on the strength of the recent share price and hope these results will justify the upgrade.
HOLD.

ICAP (ICAP.L) - Interim management statement

Investors, fund managers and Governments look to alter their strategy as the markets change, so volatility is a dream for ICAP as it is the principle trader in the big money deals. The company issued reasonable figures in May and we expect much of the same from this update.
HOLD.

Thursday 14 July 2011

Associated British Food Group (ABF.L) - Third quarter interim management statement

Associated British Food released poor figures in April and the negativity continues as margins have fallen to the low levels of 2009. There are favoured sugar plays elsewhere in the market especially within the European sector, however as retailers continue to struggle the Primark business may have seen an improvement. We will wait for an improvement before changing our stance.
SELL.

ASOS (ASOS.L) - First quarter trading statement

ASOS has been the shining light within the retail sector so far this year and we expect this update to be positive. Overseas expansion plans are well on track, sales have vastly improved and are expected to be higher than last year. The company's last statement caused a quick but significant drop in the share price, which we thought was an ideal time for investors to ‘buy' more. If the same happens after this update there will be bags of potential for investors.
BUY.

Mothercare (MTC.L) - Trading statement

Mothercare's recent announcement to close 110 stores came as a little bit of a shock to investors and the market. However, the closing stores are mainly on the high street and shutting these enables further investment to expand out of town developments and overseas operations. Having bounced off recent lows we could see some further gains if these figures are good.
BUY.
 
Friday 15 July 2011

Experian (EXPN.L) - First quarter interim statement

Experian is particularly attractive for investors wanting a truly global company. The company currently operates in 41 countries with 29 per cent of its revenues and profits derived from outside of the UK & US. This figure is expected to increase over time as its exposure to Latin America goes from strength to strength. A positive update is expected and anything less will be a disappointment.
BUY.

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