Pound Rallies

Pound rallies and all stock picks are a mix of 92% BUY and 8% HOLD.

1. BUY Safestore

Top interesting stock pick this week is BUY Safestore Holdings by Zaven Boyrazian in The Motley Fool with a tip performance of 2%.

Safestore is the UK’s largest and Europe’s second largest provider of self-storage with 177 stores in Europe including 128 stores in the UK.

Safestore Holdings share price listed at 237p in 2007, reached an all-time high of 1,371 in 2021 and is today at 906p.

In December Safestore shares were trading 761p, down 16% from 911p a year ago, with commentary to BUY as shares were cheap.

On 6 December Safestore issued a notice of final results. Safestore Holdings reported a "record-breaking year" of growth in its final results announced on 6th December 2023. The group's revenue rose by 15.1%, or 15.5% at constant exchange rates, to £186.8m. Their operating profit almost doubled. They also reported a self-funded growth and occupancy with EPS (Earnings Per Share) up by 34.1% and the final dividend up by 38.6%. For more detailed information, you may want to check the official announcement on the Safestore Holdings website.

In Stockomendation four analysts with four different ratings they are Zaven Boyrazian with BUY, Sumayya Mansoor with WATCH, Royston Wild with LONG TERM BUY and Berenberg with HOLD.

There is one open short position in Stockomendation held by GLG Partners.

2. BUY Michelmersh Brick

Second interesting stock pick this week is BUY Michelmersh Brick Holdings by Roland Head in The Motley Fool with a tip performance of 2%.

Michelmersh Brick is Britain’s largest producer of clay bricks, pavers, special shaped bricks, bespoke architectural Terra Cotta and prefabricated brick components. It owns nine other brick companies as subsisidiaries.

Michelmersh Brick Holdings share price listed at 62p in 2004, reached an all-time high of 58p in 2021 and is now at 95p.

Institutions own 53% with the top 7 investors owning 52% and insiders owning 30%. Shares are up 15% in the past month but down 28% in the past 3 years.

In Stockomendation four out of four analysts say BUY or LONG TERM BUY they are Roland Head, Sumayya Mansoor, Alan Oscroft and Canaccord Genuity.

There are no active short positions open.

3. BUY Diversified Energy

Third interesting stock pick this week is BUY Diversified Energy Company by James Beard in The Motley Fool with a tip performance of 1%

Diversified Energy Company PLC is a gas and oil production company operating in the Appalachian Basin in the United States. It produces, transports and markets primarily natural gas and natural gas liquids from existing US assets.

A week ago shares plummeted 15% when it responded to a congressional letter of enquiry regarding Securities Fraud Claims specifically policies and practices related to well management, well clean-ups and methane emissions. Specifically, since 2016, Diversified has collected over 70,000 oil and gas wells under its direct control including "marginal wells" which are "notoriously expensive and difficult to maintain."

The committee suggested that Diversified may be "vastly underestimating well cleanup costs," threatening its ability to cover the environmental liabilities associated with the plugging and cleanup of the aging wells.

This could create "thousands of orphaned, methane-leaking wells and undermine efforts to respond to the worsening climate crisis."

In Stockomendation three out of five analysts say BUY they are James Beard, Peel Hunt and Sumayya Mansoor. Zaven Boyrazian says WATCH and Jefferies says HOLD.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 28th December 2023.