Listings Dearth

Headlines say dearth of listings and all stock picks are a mix of 77% BUY, 14% SELL and 9% HOLD.

1. BUY Yellow Cake

Top interesting stock pick this week is BUY Yellow Cake by Berenberg with a tip performance of 7%.

Yellow Cake is a Jersey based uranium company that offers exposure to uranium without the risks of mining or exploration.

Berenberg raised Yellow Cake share price target by 0.87 giving a target price of £7.44 this week. On 1 January uranium hit the headlines for hedge funds stockpiling the substance creating a 16 year high price. The spot price of uranium rose from £49 at the start of 2023 to £86 at the end. The shortage says expert websites is driven by a supply deficit caused by the number of nuclear reactors under construction far outweighing production levels. Australia, Kazakhstan, and Canada hold 40% of the world’s unmined reserves of uranium.

Uranium is far more common than silver or gold. Countries such as Japan and Germany have shut down nuclear reactors in response to public outcry and fear of safety however other countries such as India, China, Russia, Saudi Arabia and even the UK all have opened new reactors or have new reactors under construction.

Yellow Cake share price listed at 204p in 2018 and is today at an all-time high of 663p.

In Stockomendation two out of four analysts say BUY they are Berenberg and Paul Summers, with Russ Mould and Gary Newman saying HOLD. There are three active share positions open.

2. AVOID Guild Esports

Second interesting stock pick this week is AVOID Guild Esports by Steve Moore in ShareProphets with a tip performance of 6%.

Guild Esports is a London based esports company partially owned by David Beckham. Guild Esports share price listed at 815p in 2020 and is today at 82p.

The big news this week with Guild Esports is that the CFO has been replaced by a new one. In his article Steve Moore questions why the existing CFO was there for less than a year and leaving with immediate effect. He also brings attention to the material loss in the past year and liabilities which are currently in excess of assets.

In Stockomendation two analysts both from Share Prophets Tom Winnifrith with SELL and Steve Moore with AVOID. There are no active short positions open.

3. OVERWEIGHT Bellway

Third interesting stock pick this week is OVERWEIGHT Bellway by Barclays with a tip performance of 5%

Cooling interest rates caused a price hike by Barclays on Bellway with Bellway one of the better placed housebuilders having outperformed its forecast in 2023.

Bellway Homes is a Newcastle based residential property developer and housebuilder based in Newcastle upon Tyne, England. It was founded in 1946.

Bellway share price listed at 109p in 1988, reached an all-time high of 4,231p in 2020 and is today at 2,684p.

Five analysts in Stockomendation: Tom Howard, Harvey Jones and UBS say BUY, Barclays says OVERWEIGHT and RBC Capital says OUTPERFORM. One open short position held by Marshall Wace.

Note: Featured image Yellow Cake uranium Energy Fuels Inc via Flickr

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 12th January 2024.