Sales pressure has been removed, short-sellers will scramble to cover their positions and keen buyers may be more tempted to step in and acquire the shares today rather than waiting to buy at a 5% discount to the governments break-even price of 77p.
Given the current backdrop of heightened security threats and questions on economic growth, defence stocks appear attractive and BAE Systems (Epic: BA.), the world’s second largest defence company, remains my preferred choice.
Greggs is well placed to benefit from the growing trend of ‘food to go’, with the fastest growth in sales coming from the breakfast on-the-go menu and its balanced choice range of healthier food now accounts for 10% of total sales.
The telecoms giant is building a strong position in an evolving industry, benefitting from changes to the way we watch programmes and consume information.
The pace of regulatory change is easing, the worst of the misconduct fines seems to be out of the way and rising interest rates are likely to be coming sooner rather than later.
Whitbread has delivered more than 10% growth in earnings and dividends for the last five years and the company is on track to deliver full year results in line with market expectations.
Total assets under management fell by £40.7 billion to £283.7 billion, the worst quarter for outflows from this asset class since the global financial crisis and even chairman Martin Gilbert fears the situation may get worse before it improves.
Rolls Royce has warned on profits five times since the start of 2014, reflecting reduced spending by defence customers, macroeconomic uncertainty, geopolitical events, outdated engines and falling commodity prices.
Wolseley's quarterly results on 9th November confirmed that a slowdown in both sales and trading profit growth has continued in all three of its major markets.
As the cost of servicing National Grid's debt starts escalating, margins will be squeezed, limiting earnings per share growth going forward.
Cranswick, typically known for its pork-related products, recently reported strong trading and has historically gained over 4.0% in December.
If Shell is to maintain its dividend, it will have to make the payment out of debts or cut capital expenditure.
Recent warnings from related companies in the sector together with next week’s Federal Reserve meeting could weigh on Barratt Developments.
As food prices continue to fall amid fierce competition among the grocers, Sainsbury’s margins and property write-downs are likely to come under further pressure.
The defence sector got a boost this week after the UK government announced it will take a more active role in promoting weapons exports amid fierce competition for such deals globally.
Vodafone is enjoying a recovery in core European markets and is well positioned to benefit from the key themes of mobile data monetisation and consolidation within the sector.