Second worst month on record?

Headlines said, “Investors pulled a net £1.02 billion from UK-focused funds in November, making it the second worst month on record” and top share tips this week are a mix of AVOID and OUTPERFORM. Overall share tips were 72% BUY, 17% SELL and 11% HOLD.

1. AVOID Engage

Top spot this week goes to Steve Moore in ShareProphets for his AVOID Engage XR Holdings with a share tip performance of 19%.

No one said share picking was easy, but Steve Moore makes it look that way with this share tip to AVOID Engage XR. Shares fell off a cliff on the 9th of December following a profit warning citing lack of sales pipeline fulfilment.

Engage XR is a ‘metaverse’ technology platform used by companies for educational purposes. It says it is used by enterprise clients. The apparent reason for the non-eventuation of the pipeline is difficult market conditions meaning delayed purchasing decisions.

Engage has had its ups and downs since launching at 12p in 2018 including an all-time high of 24p not long after listing. But with the share price at its lowest point ever right now, Steve is critical of the cash in bank, forecasts and previous announcements. Approach with caution!

2. AVOID Finncap

Second interesting top stock pick this week was AVOID Finncap Group by Tom Winnifrith in ShareProphets with a stock pick performance of 8%.

The British investment bank listed at 27p in 2018, stepped its way up to 46p in 2021 and came coasting back down to around 12p where it currently sits at an all-time low.

Equities in a bear market are bound to suffer. FinnCap reported a half year loss due to rising interest rates. Revenues are down 49% on 1H22. FinnCap has cancelled dividends and cut jobs in voluntary and mandatory redundancies.

3. OUTPERFORM Alliance Pharma

The only stock going up this week in our top 3 was Alliance Pharma with a share share tip by RBC Capital with a stock pick performance of 7%.

The global pharmaceutical company holds marketing rights for 80 brands and medicines sold globally. Institutions own 85% of stock and the top ten own 50% indicating possible volatility – if they all sell stock the share price could drop fast. Apparently, insiders own less than 1% of the company – not a great sign of the Board personally being invested we’d say.

Share price has declined 59% in the past year – at first glance it seems Alliance Pharma is on a losing streak. In addition, most other companies in the sector are growing right now.

This share tip was placed on 13 December after which a small hike (2p) happened. Estimates from 5 ratings analysts say that earnings should grow by 46% each year which would be 9.2% higher than the market in which is currently underperforming. That would be a seismic turnaround!

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 16th December 2022.