China Stocks Meltdown

China stocks meltdown and all stock picks are a mix of 78% BUY, 14% SELL and 8% HOLD.

1. AVOID East Imperial

China’s prices fall at fastest rate in 15 years as economy battles deflation says the FT headline and this week’s top stock pick is AVOID East Imperial by Steve Moore in ShareProphets with a formidable tip performance of 24%.

The beverage company was founded in 2012 and produces a range of soft drinks for sale in Asia-Pacific (APAC), the United States of America, and Europe, the Middle East, and Africa (EMEA). East Imperial share price launched at 10p in 2021, rose to an all-time high of 20p in the same year and is today at 0.6p.

A recent RNS announced East Imperial’s intention to supply a large Hong Kong Hotel Chain however Steve Moore in his article delves a little further and discovers the deal is only for the executive clubs in some hotels in the chain.

Steve Moore calls into question the viability of East Imperial calling the announcement ‘ramptastic.’

In Stockomendation Steve Moore is the only analyst with AVOID and there are no active short positions open.

2. SELL Ceres Power

Second interesting stock pick this week is SELL Ceres Power Holdings by Redburn with a tip performance of 13%.

Ceres Power is a Horsham-based clean energy technology developer founded in 2001 out of a spin out with Imperial College London.

Ceres Power share price launched on the London Stock Exchange at 909p, reached an all-time high of 2,612p in 2007 and is now at 175p.

On 2 Feb it released an RNS notifying transactions by PDMRs or insider trades in other words, with the Chair spending £45k on shares upping his stake by 200%.

In Stockomendation Berenberg and Goldman Sachs say BUY, RBC says UNDERPERFORM and Redburn says SELL. There are four active UK fund manager short positions open, view those here.

3. SPECULATIVE BUY Deltic Energy

Third interesting stock pick this week is SPECULATIVE BUY Deltic Energy by Canaccord Genuity with a tip performance of 10%

Deltic Energy is an AIM-listed natural resources investing company with offshore oil and gas assets in the UK. Originally founded to explore and develop oil and gas resources in the Southern and Central North Sea, Deltic Energy share price launched at 108p in 2012, reached an all-time high of 122p shortly after, and is today at 30p.

Canaccord lowered the target price from 180p to 160p at the Deltic announcement that it will farm out a quarter of a well that is to be drilled in Q3 with a total of 75% of the well now farmed out to other companies, the other one being Shell, to cover exploration costs.

In Stockomendation Tom Winnifrith says BUY and Canaccord says SPECULATIVE BUY. There are no active short positions open.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 8th February 2024.