Rickshaws and Robots

UK stocks fell on Monday, in a grim start to the last week of the quarter finishing up strong and stock picks are 85% BUY, 6% HOLD and 9% SELL.

1. BUY Saietta Group

Top stock pick this week is BUY Saietta Group (SED) by Canaccord Genuity with a tip performance of 24%.

Saietta Group is a United Kingdom-based multi-national business that specializes in designing, engineering, and manufacturing complete light-duty and heavy-duty e-drive systems for electric vehicles on land, ranging from scooters to buses, as well as marine applications

Saietta Group (SED) has won an £11.2 million order from a leading Indian manufacturer of electric rickshaws and other lightweight vehicles. The order is for complete electric drivetrains, which feature Saietta’s proprietary Axial Flux Technology (AFT) motors. Saietta VNA, the company’s Indian joint venture, will manufacture the units at its new production facility in Delhi. Saietta is listed on the London Stock Exchange under the ticker symbol SED:LSE. The company’s Executive Chairman Tony Gott expects the first customer vehicles powered by Saietta to be on the roads in India in the first half of 2024 .

Two analysts in Stockomendation say BUY, they are James McCombie and Canaccord Genuity, while analyst Steve Moore says SELL and there are no active short positions open.

2. Underperform Ocado Group

Second top stock pick this week is Underperform Ocado Group (OCDO) by RBC Capital with a tip performance of 16%.

Ocado Group is a United Kingdom-based technology-led software and robotics platform business. The company provides a technology platform as a managed service to retailers worldwide who are looking to build e-commerce operations in their markets. They also own a 50% share in the UK online supermarket Ocado.com.

Shares in Ocado Group PLC (AIM:SED) fell by 7% after Exane downgraded the British online supermarket to “underperform” due to concerns over subdued growth in its retail business. The company’s shares have doubled since Exane moved to neutral from underperform in June, but the risk-reward balance now appears to be out of kilter again. Exane set a target price of 390 pence. Despite this decline, Ocado’s shares have risen by 24% this year.

There are lots of market opinions on OCDO on Stockomendation, the latest are: Negative Underperform/Avoid by RBC Capital and Alan Oscroft, Neutral/Hold by Goldman Sachs and Jefferies and BUY by Harvey Jones and Jon Smith.

The stock is currently highly shorted to a level of 8.59%, largest short positions are by D1 Capital Partners LP (1.31%) and BlackRock Investment Management (UK) Limited (1.11%).

3. Sell Amte Power

Third interesting stock pick this week is Sell Amte Power (AMTE) by Steve Moore with a tip performance of 17%.

AMTE Power is a leading battery cell manufacturer and one of the only companies making them in the UK today. The company was founded in 2013 and has developed a range of lithium and sodium-ion cells, along with an extensive IP portfolio. AMTE Power’s products are designed to solve key challenges in power delivery, energy performance, and safety for electric vehicles and renewable energy storage. The company’s offerings include Ultra High-Power (UHP), Ultra Safe (US), Ultra Energy (UE), and Ultra Prime (UPr) battery cells. AMTE Power is committed to delivering sustainable performance and a stable supply chain to support the transition to a net-zero world.

Battery manufacturer AMTE Power has successfully raised new capital through a placing of new shares. Following a vote at a general meeting, the company has applied to the London Stock Exchange for admission of 112.6 million conditional placing shares to begin trading on AIM from 26 September. The new issue is expected to raise £2m. However, the London Stock Exchange still has to confirm a date for lifting its suspension of trading in the company’s existing shares, which was imposed on 13 September due to a deterioration in settlement performance. AMTE Power has a manufacturing plant in Thurso and a research site in Oxford. The company values its shareholder base and believes it is appropriate to provide eligible existing retail shareholders with the opportunity to participate in the retail offer. An announcement regarding the launch of the retail offer will be made shortly following the lifting of the suspension of trading in the Ordinary Shares.

Currently on Stockomendation the analyst Steve Moore is negative on the stock with SELL recommendation. There is one active short position open by Panmure Gordon (1.89%).

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