This Week’s Stocks and Shares Advice

Betfair looks to bolster the books with US investments whilst Belways have seemingly bucked the trend after a stagnant time on the Governments Homes to Buy scheme! 

Jonny Smith's Shares

Last Week Review: Last weeks advice in relation to Synergy health was positive they were up 6.2 per cent on Thursday after a set of positive results. Currently I’m in America for three weeks so will be covering some goings on in the Nasdaq, and Dow Jones whilst keeping up to date of the latest FTSE news with normal result publications.
Personally, I have invested in a company called Monitise this week. A volatile stock, it is found on the alternative investment market (AIM) and have bottomed out since the new year to around 60-63p per share. The company specialises in mobile banking and payments services recently announcing the acquisition of a former chief executive from Visa, which helped bolster the share price to 68.5p. It looks a plausible long-term investment with a year high of 82.75p, a year low of 32.75p, and a current share price of 66.98p, though I would advise readers to seriously consider investing in TSB who are emerging onto the FTSE later in the month. There are options for the public to buy shares in the company and they look a good long-term proposition with an expected starting share range of between 220-290p per share, which is cheap in comparison to other companies in this sector.
In this weeks news, Betfair have their year ending results on Thursday with market reports suggesting the company is expanding its operations in the USA. Betfair isn’t increasing their year end dividend, which allows the company to invest £200 million into its US conquest. Market analysts at Numis Securities are advising the company to retain their cash and focus on the UK with investors deciding to err on the side of caution as this industry is currently experiencing tough times with the tightening of UK gambling laws. Betfair has a year high of 1,192.94p, and a year low of 259p with a current share price of 1,001p. The new government gambling laws may well have had an affect on the company’s results in the latter part of their year, and it will be interesting to see how they fare.
In recent news Bellway, a property development company, released a trading statement with positive expectations as reports suggest they were boosted by the Government’s Help to Buy scheme, but their current growth is expected to slow. That being said sale prices are increasing after a recent trading statement, which suggests the company is going to hit its year end profit target of approximately £220 million. After assessing the market competitors to Bellway their shares are seemingly the cheapest for those enlisted to the Government’s Help to Buy scheme, and I’d advise to invest prior to their end of year results in July. The company has a year high of 1,715p and a year low of 1,206p with a current share price of 1,509p. I would advise buying into Bellways with their end of year results coming up in July, and after a promising trading statement recently should mean a good short term yield.

Overall, there seems plenty of scope for investment with Monitise looking good for the long-term and Bellway over the next month could provide investors with a fruitful reward. Betfair seem to be the risky ones here, as the year ending results, and US exploits could impact the share price come result day on Thursday. Finally TSB’s emergence onto the stock market is a great opportunity for investors to see their share price grow, as they are cheap compared to other market brands.

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