Wednesday, October 1, 2014

Two stocks to buy – and one you should sell – Business Week

Two stocks to buy – and one you should sell – Business Week

Analysts köpstämplar two stable companies with low valuations that have had temporary slumps. Another shares facing a problem and should be sold.

The business world leaves in week number four recommendations. Buy Clas Ohlson and Beijer Alma , sell Rezidor , and wait with Kambi .

In late March, lowered business world recommendation for Clas Ohlson to wait after a hefty rate surges. Since then, the shares are down 10 percent, while the stock market has risen 3 percent. From the company’s last quarterly report showed that it regained momentum in growth, which will be reflected in improved profitability. The business world believe that consensus scenario for the company’s profitability is too pessimistic and that the forecast increases are likely. The recommendation is to buy and target price is set to SEK 142.

Workshop Company Beijer Alma curls with stability, high yield and low valuation. Since peak levels at the beginning of the year, the stock has fallen by over 20 percent and the business world see an opportunity to exploit a temporary dip in a well-managed company with a sustainable growth strategy. Buy recommended with sights set on 200.

Exchange only hotel company, Rezidor, grappling with new problems. The company is not growing anymore, but the fact is that more hotels closes than opens. Furthermore, investments in several new countries developed into a nightmare, with hotels in Ukraine and Russia affected by the geopolitical unrest in the region. The business world does not see that it is time to buy the shares – an idea they seem to share with the company president who stayed away from new purchases in 2014 – but would recommend to sell the stock and wait for lower prices for any input.

Kambi, Unibet’s spun-off subsidiaries is engaged in the technical development and operation of sports games for other gaming companies, have had a fantastic trip for this summer’s IPO. Before the first trading day, KPMG assessed the shares to be worth around 22 dollars, but about three months later, shares up at the peak 73 crowns and then rebound to 57 crowns. Business Empires considers the share rushed too fast, and a P / E ratio of 41 on next year’s earnings are unjustifiably high and well above the competition. Thus sees business world that the odds for a touchdown is low, then the recommendation is to take profit and wait.

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