Share Tips of the Week

We reported to Stockomendation members this week’s headline: “Active funds lost to passives in 2022’s sell-off”. There are no surprises there for us given most Active fund managers are outperformed by monkeys We have tracked that BUYs stock picks are gaining strength and were outweighing the more negative SELL sentiment in the markets.

1. Top tip this week was Overweight Aviva (AV.) by JP Morgan with a tip performance of 15%. We won’t delve too deeply into this coveted stock today again after our coverage a few weeks ago except to say JP Morgan still sees it as a BUY after its share disposal.

2. Second tip this week was Avoid Fusion Antibodies (FAB) by Steve Moore in ShareProphets with a performance 14%. Originally made on 9 August, Steve explained the reasoning behind this tip in his blog being doubts about whether enough cash is held by the company to produce its latest patents.

Fusion Antibodies is an Irish biotech company listed in 2017 at a price of 165, currently trading at 85.

The company put out a press release on 9 August announcing the new patent that Steve is suspicious about. Concerns from the wider investor community about the rate of cash burn fuelling the growth of this R&D company has added to the trepidation around this stock

Fact is, many R&D companies don’t make money for years until a major discovery and product development, whilst some never make it back at all. Which of the two types Fusion Antibodies fits into is purely speculation, but the answer will all depend on whether it can raise more cash in the short term to fuel that growth.

3. Add Mondi (MNDI) by Stuart Blair in The Motley Fool tip performance 13%

Where do we start? It’s been an eventful year for this paper and packaging manufacturer headquartered in Weybridge. The tip was placed on 9 August at 1,477 and skyrocketed to 1740 by 13 August where it peaked and fell and is still falling.

Fool says it’s a stable stock that has been rising over the past years however it had bases in Ukraine and Russia which could have proven quite a problem had it not disposed of those mills forthwith. Sold to a Russian billionaire, Mondi went onto purchase another mill in Italy virtually on the same day! Down went the stock in March only to bob up rising again slowly.

Energy, wood, resins, transport, chemical and paper prices are rising in Europe due to the Russia conflict which has impacted results, but Mondi still beat analysts forecast and the market seems upbeat. Market sentiment seems to say that this is a bargain not-so-little goer to grab for a rainy day.

Is this a real shift in sentiment or just a dead cat bounce? The fact is: nobody knows what will happen next week except Mr Putin and perhaps the well-informed top share pickers on Stockomendation. Don’t reinvent the wheel, follow the top UK share pickers on stockomendation.com

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 17th August 2022..