Jonny’s Shares – The London Economic

Game Digital has found a new home on the FTSE whilst WHSmith are expanding its oversees operations

Following on from the Scottish referendum there has been numerous election campaigns getting underway ahead of the next general election in early May. The stock market has not really changed over the past few weeks but these campaigns can often impact the market depending on the stance of each political party. It is key for market analysts to take stock of what is mentioned as it can impact pensions and investments in the long-term. There is some major companies releasing their interim and year ending results this week so we will have a look at those companies in question.

Thursday 16th October sees retailer WHSmith release its year ending results. The company has hit troubled waters over the past few years on the high street with the digital era causing it to re-think its strategy. WHSmith is now expanding its travel business within airports, services and rail stations with this been their main source of profit. The company has expanded the travel side of its business by opening global outlets targeting jet setters, reporting profits of 9.5 per cent compared to 2013. Worryingly, WHSmith’s previous quarter reported stagnant growth in its travel business, but it is expecting overall year growth.Market analysts at Numis expect solid progress on last year and Cantor Fitzgerald along with BNP Paribas have advised investors to buy the stock with targets of 1,100p and 1,300p. The stock over the past year has risen by 13.23 per cent with WHSmith having a year low of 880p and a year high of 1,246p with a current price of 1,004p.

WHSmith

Keeping with the high street theme we have seen the emergence of Game Digital after they went into administration two years ago. The company releases its annual results on Thursday and is moving on up with a return to the stock market, which has helped boost market confidence in the retailer as it is set to announce a doubling of its profits compared to this time last year. According to market analysts the release of the new Xbox and Playstation consoles has helped keep consumer demand over the past year. There has been a reported uptake on the membership scheme offering discounts off products which suggests it has retained its loyal customers. The company’s transformation has been largely due to the re-scaling of its large costly store space, which put a large strain on the business. The current share price is 285.0p with a year low of 185.85p, and a year high of 286.0p with net growth of 44 per cent since its re-emergence onto the FTSE in July 2014.

Game Digital

Newcastle-based property developer Bellway has its year ending results on Tuesday 14th October 2014 with numerous companies placing targets on the FTSE 250 stock. Westhouse Securities placed a 1,411 pence target on Bellway whilst Deustche Bank have an inflated target of 1,647p on the stock, and both companies advised current investors to retain the stock ahead of their results. After poor quarter two results caused the stock to decline by ten per cent there was a cause for concern amongst investors, but there has been renewed optimism recently. Market analysts are predicting the company is going to make record profits, which are expected to be 60 per cent greater in comparison to this time last year, and a healthy dividend. The stock has an average year share yield of 6.78 per cent, a year low of 1,333p, and a year high of 1,715p meaning the predicted targets from both companies are on target.

Bellway

Overall, WHSmith is making good strides with positive results expected on Thursday and there is potential for the long-term after the company announced it is further expanding the travel side of its operations. Game Digital’s transformation has been remarkable with them re-emerging back onto the FTSE just 18 months following their collapse and there is scope for long-term investors as the hedge fund in charge of the company will ensure they are making profit. Bellway are set to have made great strides this year with market, as analysts suggest shareholders should retain their shares prior to their positive year-ending results.

By Jonny Smith, Stocks and Shares Analyst. 

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