FTSE Calm

Headlines say FTSE calm amid bond selloff and fresh US political woes(1), and all stock picks are a mix of Buy: 81%, Hold: 11% and Sell: 8%

1. SELL Canadian Overseas Petroleum

Top stock pick this week is SELL Canadian Overseas Petroleum Limited by Tom Winnifrith in ShareProphets with a tip performance of 26%.

Canadian Overseas Petroleum share price listed at 1800p in 2004, its all-time highest ever price. Today it sits at 1.96p.

It is an international oil and gas exploration, production, and development company with operations focused in Converse and Natrona Counties, Wyoming, USA.

Canadian Overseas Petroleum Limited made an announcement on October 2 that it has entered into an amendment to its Senior Credit Facility. This amendment provides a waiver of its covenant tests as of September 30. The waiver is conditional on the closing of the Company’s financing which has been extended by agreement with Anavio Capital Partners LLP to October 6, 202312. The Company is on track to close the financing prior to October 6, 2023.

In Stockomendation, Winnifrith is the only analyst with SELL and there are no active short positions open.

2. SELL XP Power

Second top stock pick this week is SELL XP Power by Steve Moore in ShareProphets with a tip performance of 25%.

XP Power share price listed at 522p in 2000, reached 5,610 in 2021 and is now at 901p.

Shares tumbled 45% at this week’s announcement of reduced revenue due to less demand in China.

XP Power, headquartered in Singapore, produces power converters and supplies.

In Stockomendation two out of five analysts say HOLD they are Jefferies and Berenberg; Edward Sheldon says BUY, Zaven Boyrazien says RISKY BUY and Steve Moore says SELL. There are three active short positions.

3. AVOID Hipgnosis Songs Fund

Third interesting stock pick this week is AVOID Hipgnosis Songs Fund Limited by Emma Powell in The Times - Tempus with a tip performance of 8%.

According to Wikipedia, Hipgnsis is a ‘British Guernsey-registered music IP investment and song management company founded by Merck Mercuriadis and Nile Rodgers in 2018.’

Hipgnosis Songs Fund share price listed on the London Stock Exchange at 105p in 2018, reached an all-time high of 129p in 2021 and is now at 75p.

Out of five analysts in Stockomendation Emma says AVOID, Richard Evans and Danielle Levy say HOLD and Jefferies and Paul Summers say BUY and there are two active short positions open.

A messy deal proposed to shareholders would see a fifth of its portfolio bought by rival Blackstone music but Emma says shareholders should reject due to conflicts. There is a ‘yawning gap’ between market valuation and share price and the deal would pay off debt and aspirationally close some of the gap.

(1) Financial Times

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 6th October 2023.