House Sales Worst

Headlines say house sales are worst since COVID began and all stock picks are a mix of 88% BUY, 5% HOLD and 6% SELL.

1. SELL Tern

Top stock pick this week is SELL Tern by Nigel Somerville in ShareProphets with a tip performance 13%.

Tern is an investment house that specialises in Internet of Things investments. Shares went ‘flying’ last week as it announced a collaboration with SpaceX via its portfolio company Wyld. Well, they doubled to 8p, a 116% rise. Tern owns 27% of Wyld.

However, Nigel calls it ‘jam-tomorrow’ citing ever increasing yoy losses in the latest accounts filed at Companies House – from £15 million last to up £2.6 million to £17.8 million and no cash in sight. Nigel says we hear wonderful things about how well its main portfolio company Device Authority (DA) is doing but the numbers do not match those words. With a decline in net assets and a statement that it will need more cash to continue, Nigel says Tern will be eating ‘eating its own tail to continue’ as it relies on Wyld to fund its own shortfall!

Tern has big beginnings at 600,000 initial listed share price in 2006 but crashed down to 500p not long after in 2010, and slowly went even further down to 6p where it is today.

Nigel Somerville is the only analyst rating in Stockomendation with SELL and there are no short positions open.

2. BUY Renold

Second top stock pick this week is BUY Renold by Royston Wild in The Motley Fool with a tip performance of 8%.

Renold is a Manchester based manufacturer of chains for amusement parks and high end bicycles, gears and couplings.

A stock market stalwart having listed at 59p back in 1993, it has had a few ups and downs along the way to its 31p share price where it is today.

In its recent published report and accounts earnings per share missed analyst forecasts by 19% however revenue was in line with expectations, and some say given its heritage it could be time to snap a bargain while share price is low.

Three of three analysts in Stockomendation rate Renold as straight BUY. They are Royston Wild, Alan Oscroft and Hot Stock Rockets. There are no short positions currently open.

3. SELL Superdry

Third interesting top stock pick this week is SELL Superdry by Steve Moore in ShareProphets with a tip performance of 8%.

The beleaguered Cheltenham fashion retailer has been taking a share price tumble since highs in 2017 (2,074p) after listing at a modest 560p back in 2010. Now at just 66p, it has just secured secondary funding of £25 million from Hilco Capital – at 10.5% no less and that will be PLUS BofE base rate – to ‘get the crisis under control’ again. Steve Moore questions the company’s previous announcement that it is “recovering well” and notes the approach to the can appears to be to ‘kick down the road.’

Four very different ratings in Stockomendation: Steve Moore says SELL, Sumayya Mansoor says WATCH, Matthew Dumigan says LONG TERM BUY and Harvey Jones says BUY. There are two active short positions open.

Image credit : Renold

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 10th August 2023.