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Fresnillo: finding the silver lining

Silver miner Fresnillo trades fresh 2018 lows after a 12% share price plunge Thursday and another 7% today. Why? Analysts at Morgan Stanley downgraded it to Underweight and cut their target to 715p (from 1100p). Why? A series of bills in the Mexican parliament that could restrict mining. This highlights a glaring issue for long-term…

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RBS: The Return of the King

Many investors assume that all UK Index Banks are the same and their share prices move in lockstep. Invest in one, invest in the other, what’s the difference? Today is a great example of a trading session that proves nothing could be further from the truth. Some of the blue-chip Banks are rallying (RBS), others…

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BTG – Boston Takeover Gift

Another day, another takeover, with a handsome 35% share price jump to boot. And today its the turn of specialty healthcare/biotech company BTG which could be snapped up by Boston Scientific after it offered 840p cash per share (36% premium). BTG operates via 3 segments; interventional medicine (oncology (cancer), vascular, pulmonology), pharmacuticals and licensing, and has been formed…

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The UK Index this week – 16 Nov

As we move into the weekend the UK 100 is bouncing from another flirt with round number 7000, albeit still stuck in what is now a week-long sideways channel with a 7000 floor and 7100 ceiling. Uncertainty remains with regards to UK politics and Brexit, which could yet move GBP next week with a knock-on…

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Averaging down – what does it Mean?

I recently wrote a piece about stop losses and how many retail traders/investors prefer to take the risk and trade without them. At the time, I mentioned the psychology of hope and conviction in share price recovery, holding on to a losing position “because it might bounce back”. This week I develop on the latter, discussing…

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UK Index Tobacco: Smoke & Mirrors

The biggest blue-chip faller over the past several weeks has been UK Index tobacco manufacturer British American Tobacco (BAT). Its shares have now hit 7-year lows, having fallen close to 25% in the past 3 weeks and -46% year-to-date. The latest news hurting British American Tobacco originates from the United States where government regulator the Food &…

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