VC Tumbles

Headlines say UK VC investment tumbles and all stock picks are a mix of 76% BUY, 12% HOLD and 12% SELL in Stockomendation.

1. AVOID Corero Network Security

Top stock pick this week was AVOID Corero Network Security by Steve Moore in ShareProphets with a tip performance of 11%. ShareProphets is sceptical in this article about Corero’s ability to deliver on upbeat promises made in its latest announcement.

Corero Network Security share price listed at 2,007p in 1996, reached an all-time high of 2,940p in 2000 and has made its way down to 7p where it is today, its lowest ever price.

Corero Network Security describes itself as a leading provider of DDoS protection solutions. A positive spin on the most recent announcement hides falling sales, higher spend and a declining share price. Steve is sceptical of this stock and has placed no less than 30 SELL or AVOID tips on it since 2017.

Royston Wild says BUY and Canaccord Genuity has it under review. There are no short positions currently open in Stockomendation.

2. HOLD IG Design Group

Second interesting stock pick this week was HOLD IG Design Group by Russ Mould in The Telegraph - Questor with a tip performance of 10%.

The greeting card & stationery manufacturer founded in 1978 listed at 58p in 1996, reached 798p in 2020 and is at 178p today.

A recent update announced a 8% lower revenues this year due to problems in its USA region, sending shares tumbling 13%.

Ross Mould is upbeat about a turnaround in his article. He highlights satisfactory performance in Europe and strategy measures to curtail losses in loss-making regions. Full year results are due in June – Mould tells investors to stick with it for long term turnaround results but admits some investors may cut and run in the meantime.

Three of four analysts in Stockomendation rate IG Design as BUY or ADD with Ross saying HOLD and there are no active short positions currently open.

3. OVERWEIGHT RWS Holdings

Third interesting stock pick this week was OVERWEIGHT RWS Holdings by Barclays with a tip performance of 6%.

Moderate buy rating from Barclays for RWS which is an IP translation company. Founded in 1958, it listed at 525p in 2000, reached 6p in 2003 and has today recovered to 260p.

It announced a profit warning at the latest update this week, spooking investors and sending shares tumbling 16.5%. Organic sales are down 7% in the first half of the year and pre-tax profit is forewarned to be 11% lower than expectations. In a late update, insider CFO bought 20,000 shares worth £48,000.

Jessica Newman is flat about RWS Holdings in her column in the Times and it seems that investors are heeding the warning.

Barclays has placed 8 tips on RWS Holdings since June 2019 – all OVERWEIGHT. Four of five analysts in Stockomendation say BUY or OVERWEIGHT being Barclays, Investec, Shore Capital and Berenberg with only Robert Stephens of the Telegraph saying HOLD. There are no active short positions.

Image credit Gerd Altmann from Pixabay

Forewarned is forearmed! As always you can see the aggregated, performance monitored and ranked stock tips and picks data in Stockomendation which equips you to make good investing decisions. Check out www.stockomendation.com before your next trade for maximum understanding of your target stock.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 27th April 2023.