Strong growth in new businesses reinforces Sky’s market leading position and the chart signifies a good buying opportunity to take advantage of its upward trend.
Rolls-Royce has a world-leading reputation, a strong order book and a new management team to support the turnaround.
Analysts suggest a bidder would have to offer at least 550p per share just to be taken seriously, while there is a real chance that other insurers including Allianz, Generali and Aviva, might be mulling an offer.
Rio Tinto’s first half results were not as bad as feared, yet they didn’t capture the latest downturn in commodity prices. Short-term earnings forecasts may come under further pressure, putting strain on the balance sheet, leaving the dividend uncovered.
Centrica’s new management team retains a clearly defined focus on the balance sheet, while the shift away from high-risk upstream operations will lead to reduced business risk and enable the company to evolve.
Arm has benefitted from their increasing focus on the internet of things, as it looks to diversify its product offering. The group signed 54 processor licences in the second quarter and become a key supplier to most large electronics manufacturers
Given the negative sentiment towards BT surrounding the Ofcom investigation, combined with the uncertainty over the EE deal and chart resistance, I don’t envisage BT breaking to fresh highs.
BP has been long muted as a possible takeover target from the likes of US giant ExxonMobil and with clarity over settlement, combined with the strong dollar, could facilitate such a move.
British Land offers an opportunity to take advantage of the strong London property market, while robust results, a progressive dividend policy and an enticing technical outlook, suggest this could be a good entry level.
Telford Homes is well managed and ideally placed to benefit from the fast-growing London market, while its size may attract the predatory interest of a larger market player.
Marc Bolland’s investment into infrastructure at Marks & Spencer appears to be bearing fruit, with the retailer’s free cash flow set to grow rapidly this year.
The press this week speculated that BT is set to become a takeover target for Germany’s Deutsche Telecom AG and analysts believe the integration of EE will substantially support earnings and dividend growth next year.
The fundamental investment case for EasyJet remains robust and I believe the 17% fall is an over-reaction to what was ultimately a small underlying consensus downgrade.
Whilst there is no denying that Thomas Cook could have showed more compassion in the aftermath of the tragic events of 2006, it is hard to ignore the progress made on the company’s turnaround.
Serco is now on a more financially stable footing to pursue its strategy of transformation and at 137.8p is below its theoretical ex-rights price of 153.7p. Having put himself forward for the job, I believe Rupert Soames has positioned the company for renewed growth.
Unilever is starting to see more tailwinds than headwinds and expect its initiatives to deliver a further improvement in volume growth in the remainder of the year.