HL Attack

Headlines say Abrdn and HL among UK’s most shorted firms in £730m attack and all stock picks are a mix of 84% BUY, 9% HOLD and 7% SELL in Stockomendation.

1. AVOID Itaconix

Top interesting share tip this week is AVOID Itaconix by Steve Moore in ShareProphets with a tip performance of 6%.

Itaconix produces a range of polymers of cleaning, coatings and energy using itaconic acid which is a substance that can be derived from simple sugars (plant-based polymers). An environmentally friendly alternative to phosphates, it’s in 145 consumer brand products. Itaconix was founded in 2012 and is headquartered in London.

In an announcement yesterday (7 June) it announced revenue increase of 115%. Despite this positivity, the share price fell off a cliff (-20%) following the release of the latest financials, causing it to crash after a four-year high of 17p last week.

It floated at 74p back in 2012 and today sits sadly at 5p, a shadow of its former self. It seems even though revenues only missed analysts estimates by 1.6%, the loss widened (by 5 times) and that is scaring investors. Moore says the increased revenue was funded by the loss – by selling products too cheap.

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

2. BUY NewRiver

Second interesting stock pick this week is BUY NewRiver REIT by Jefferies with a tip performance of 5%. As we learnt last week, real estate investment trusts are at risk when the Bank of England raises interest rates however positive news is all around this week about London REIT NewRiver which owns 33 shopping centres, 25 retail warehouses, 14 high street units and over 700 public houses.

Jefferies reiterated its BUY rating this week with the company reporting strong operational results. £23m disposal is buried in amongst the detail which no doubt helped the cash at bank, nonetheless the media seem amped about the report. Shore Capital and Peel Hunt weighed in with reiterations and higher target prices.

Mitchell Labiak paints a more sober picture in Investors Chronicle stating that the results if you look at the portfolio are disappointing, with the company reporting a loss, lower income, and running now at half the share price of 2020. He highlights NewRiver’s turnaround plan to sell off a third of assets.

NewRiver REIT share price floated at 278 in 2009 and now sits at 88p.

Three out of three analysts in Stockomendation rate it as BUY and there are no active short positions.

3. BUY Ariana Resources

Third interesting stock pick this week is BUY Ariana Resources by Nigel Somerville in ShareProphets with a tip performance of 4%.

It is difficult to see the real picture of the Cyprus gold and copper mining company. Somerville is a shareholder and upbeat about Ariana’s main gold operations in Turkey and further exploration.

Ariana share price opened in 2005 at 13p, reached an all-time high of 17p just a year later and now is at 3p.

In Stockomendation Nigel Somerville is the only analyst with BUY and there are no active short positions open.

Image credit : Ariana Resources

Forewarned is forearmed! As always you can see the aggregated, performance monitored and ranked stock tips and picks data in Stockomendation which equips you to make good investing decisions. Check out www.stockomendation.com before your next trade for maximum understanding of your target stock.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 8th June 2023.