Monday share tips: Marks & Spencer, Burberry and Experian

8th July 2013

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UK retailing giant Marks & Spencer and luxury fashion label Burberry are among those updating the market this week. Mindful Money looks at whether investors should buy or sell writes Philip Scott.

Marks & Spencer delivers its first quarter trading update on Tuesday. Once again, same store UK general merchandise sales, including the highly observed women’s wear sector, are expected to decline, hindered by both unseasonal weather and an on-going loss of market share but same store UK food sales are again forecast to rise.

Online sales, albeit from a still relatively low base, are likely to have expanded further. Investors may continue to look forward, with the group’s new autumn clothing range, underwritten by new management signings, potentially pushing sales growth back into positive territory. Over the past year, its stock is now up by 47 per cent – and by 23 per cent in the past three months.

Keith Bowman, equities analyst at Hargreaves Lansdown Stockbrokers says: “For now, despite a previously announced reduction in capital expenditure, a new ecommerce distribution centre and hopes for its autumn clothing range, with only lower margin same store UK food sales growing, analyst opinion remains neutral in tone, as a ‘hold’.” But broker Panmure Gordon, is predicting better trading going forward, and The Share Centre rates the stock as a ‘buy’.”

FTSE 250 listed inter-dealer broker ICAP, has endured a volatile period but overall its stock is up, by 33 per cent in the past six months alone. In May, its results bolstered investor confidence. On Wednesday, the group updates the market with its interim management statement. Sheridan Admans, investment research manager at The Share Centre says: “Investors will be keen to know how the recent falls in global markets have affected trading activity. The company will be expected to comment on new initiatives and its on-going cost cutting measures. It may also throw further light on the Libor scandal.” Admans lists the stock as a ‘hold’.

Bowman adds: “New regulation for banks, the group’s main customers, can stifle confidence but the market knows this and would have priced this in. Icap has also been cutting costs and the market will look forward to an update. For the moment, analyst consensus has it rated as a ‘hold’.”

26 thoughts on “Monday share tips: Marks & Spencer, Burberry and Experian”

  1. dutch says:

    We have a dream by the Scottish world cup team 1982

    https://www.youtube.com/watch?v=ThWQcJqeE88

    1. Anonymous says:

      Hi Dutch

      Thanks I am not sure how that one got missed out. Perhaps under crimes to music! Do teams still do a song as I cannot remember any recent ones?

      1. Andy Zarse says:

        Don’t forget the World Cup 1978;
        We’re on the march we’re Alec’s Army,
        We’re gonna win the plebiscite
        And we’ll really shake’em up
        When we win the oil…

        1. Bones says:

          If the Yes team win then David Cameron may be singing a bit of Marianne Faithfull – Why D’ya Do It?

  2. dutch says:

    for the no camp also from 82 Dream On by Nazareth
    https://www.youtube.com/watch?v=xdtv1asgcZ8
    ‘thos its hard to tell,
    that you’re foolin yourself,
    dream on.’

    I’ll get my coat

    1. Anonymous says:

      Thank you Dutch.

  3. Anonymous says:

    An independent Scotland could quickly move to a separate currency which they peg to GBP. They already issue their own banknotes.

    This gives a timing advantage should they find the BOE interest rates and/or exchange rates unsuitable for Scotland.

    1. Anonymous says:

      Hi ExpatInBG

      I agree that this would be a much better and in particular a more flexible choice than just simply adopting the UK Pound. The whole currency issue seems to be an after thought. It would be reasonable to think that the previous plan of joining an “arc of prosperity” in the Euro would have been taken as a warning to think deeply about this. But apparently not.

    2. Noo 2 Economics says:

      If they used a peg this would determine their interest rates dependent upon what the BOE was doing so I don’t see the advantage over simply staying with the GBP? Albeit I don’t believe staying with the GBP to be a good medium or long term solution for Scotland if it votes yes.

      1. Anonymous says:

        It took the Eurozone years to issue Euro banknotes. Greece would have a massive task issuing new drachma notes, which could not be done overnight.

        The drawback of a peg is that Scotland might pay higher interest rates. The Bulgarian Lev is pegged to the Euro, Lev borrowers pay higher interest.

        But I think the benefits outweigh the risk of higher interest rates. A Scottish govt could dissolve an inappropraite peg overnight. The British leaders have stated they will not have a currency union without political union – Salmond is either in denial or being deliberately dishonest. The BOE points out that currency union without political union has caused problems in Greece.

        I suggest independence also means separation from the Bank of England.

        Zimbabwe use USD, Kosovo use Euro. Would Scotland want to join the club “we don’t have our own currency because we’re too incompetent, corrupt etc” ?

      2. Anonymous says:

        Just seen the results.

        The UK could devolve much power similar to the USA. UK budget for defence, foreign office etc with low federal taxes to fund it at equal rates across England, NI, Scotland & Wales. Each country can then set local tax rates for policing, education, health, transport etc as the voters see fit.

        We need to answer the West Lothian question, preferably without adding extra politicians and costs.

        1. Eric says:

          Right. All we have to decide now is the location for the English Assembly. Can I register my vote for York.
          I honestly think we have taken the first step to Federalisation. If there’s one thing Westminster should understand it is that things have to change. Whole sections of the population are p’d off with them about the mess they created and can’t clear up.
          But I’m very happy the UK has not been abandoned.

          1. Anonymous says:

            A new assembly in York – that adds extra politicians and costs. :-(

          2. Eric says:

            Oh no. Dozens of ’em in Westminster have to go. They had their chance. Part of the problem is the current system is too Capital- centric.

            Think of the quality of the London – York rail service! :-)

            If they can’t do it cheaper, better, with fewer people then they will have failed again.

          3. Anonymous says:

            UK democracy has it’s flaws. First Past the Post disenfranchises too many voters. Referendums are too infrequent – allowing party whips to impose laws.

            But it isn’t all wrong. UK MPs are much cheaper than Eurucrats. UK ranks 14th by transparency Intl, so it is in the top 10% in the world. By comparison, Spain ranks 40th and refuses to permit independence referendums.

            So I suggest the best way forward is evolution of the UK system(s). I favour decisions Swiss style by referendum.

            Moving Westminister to York imposes relocation costs without changing the MPs.

          4. Eric says:

            Taking my tongue out of my cheek for a moment – suggesting York is a means of asking for radical change. I don’t really expect any relocation. But if we don’t have either – an English assembly, or power devolved to the Regions or Counties (Swiss style!) then I fear nothing much will change of decades.

          5. Anonymous says:

            Hi Guys

            I just wanted to add that whilst a decentralisation of powers from Westminster would be welcome across the UK (including England) we need to do so in a way that reduces rather than creates political jobs. I have long thought that as political power has gone to Europe in one direction and to Scotland,Wales and NI that the numbers of MPs should be reduced accordingly.

            Instead the plan to reduce 650 MPs to 600 seems to have been redacted and the number of Lords is approaching bubble status!

        2. Noo 2 Economics says:

          This is really just to let you know I do read replies to my comments in case you were wondering about my silence.

          I mostly agree with your USA example (being a US citizen myself I tend to be partisan when the US is mentioned) but would add that each “country” must have it’s own Central Bank linked to and with a representative on the big “Federated Central Bank” as the American States and EZ do, otherwise it wouldn’t work because the markets (in which I am a participant) would doubt the resolve of the one Central Bank to bail out the individual countries in times of stress. I’m ending here as this is getting too close to politics for my liking.

  4. Eric says:

    Hi Shaun,
    I’m surprised you missed the chance for a little Rick Rolling – Together Forever

    1. Anonymous says:

      Hi Eric

      Okay let me get in the Rick Rolling spirit. What about this?

      http://www.youtube.com/watch?v=dQw4w9WgXcQ

      The song Never Gonna Give You Up has lasted better than the accompanying video I think.

  5. Zummerzetman says:

    How about : Let’s stick together-Bryan Ferry or
    I’m sticking with you-Velvet Underground?

    1. Anonymous says:

      Hi Zummerzetman

      Thank you, having seen Roxy Music back in the day certainly a couple of decades ago I can respond by wondering if the Yes camp think they are building an Avalon?

  6. Zummerzetman says:

    If they don’t get their Avalon, they might end up wishing for More Than This.

    1. Anonymous says:

      Hi therrawbuzzin

      Sadly there were more than a few candidates for that song title during the overall campaign. Do you have anyone particular in mind?

      1. therrawbuzzin says:

        The whole Westminster establishment was my target, and so many of the lyrics really fit.
        Thought of a joke whilst shopping today, it’s not relevant, but I’ll share it anyway<
        Wanted to by a book of free poetry at Morrison's today, but got to the checkout and it wouldn't scan.
        Sorry, still dreadfully disappointed.

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