Sunday share tips: Asos, Harmony Energy Income Trust – London South East


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Mon, 18th Oct 2021 00:57
(Sharecast News) – The Sunday Telegraph’s Questor told investors to ‘buy’ shares of Asos, citing analysts who believed its logistical woes would pass to back up its case.

According to Fahad Hassan of Albemarle Street Partners, a shareholder in the company, those supply problems could be expected to be resolved in about six months.

Nevertheless, the online retailer may have to rethink how much inventory it holds, which could translate into the need to build more warehouses and hit margins.

And with sales set to grow by as little as 10% in 2022, profits may struggle to exceed £130m, which would be down from £177m for the year ended in August.

“I think Asos is a long-term growth stock,” Hassan says.

“It has created something unique in Britain’s online fashion sector and the more it expands into other regions the more likely it is that a bigger competitor will want to gobble it up.

“Even if that doesn’t happen, this is a company that should be able to grow at 20pc a year yet whose shares trade at just 16 times predicted earnings for 2023.”

The Financial Mail on Sunday’s Midas column recommended that the more ecologically minded investor take a look at Harmony Energy Income Trust, as well as those who might simply want to hedge their bets in a climate-conscious world.

The company’s battery storage plants allow power to be released to the grid and sent to clients when it was most needed.

“The past few weeks have shown that when the wind does not blow and the sun does not shine, Britain’s entire electricity system buckles under the strain,” Midas said.

“Battery storage makes the transition to renewable energy much more viable and Harmony is an expert in the field.”

It was planning to list on the stock market in November with the hope of raising £230m.

Investors however would be able to buy shares at £1 each starting this same week, either through Primary bid or via intermediaries including AJ Bell and Hargreaves Lansdown.

The group’s startegy was to purchase power on wholesale markets when it was cheap – usually overnight from renewable sources – and sell it when it was most in demand.

And with the proceeds from the flotation, it intended to buy six projects, capable of storing 312.5MW of electricity or enough to power 95,000 homes a year.

It also had exclusive rights to purchase sites over the coming five years capable of storing 687.5MW of power.

Its battery provider? Tesla.

Harmony chief Paul Mason was also targeting an 8% dividend yield from 2023.

“The dividend yield is appealing too. When the shares go on sale at £1, they are worth a close look.”

(Sharecast News) – Soaring fertiliser costs on the back of the gas crisis will prolong high food prices globally, which are already at their loftiest in half a century, until 2023. Economists at BCA Research forecast that global food prices will continue to increase during the following year and remain high into 2023. Furthermore, supply chain analysts say that supermarkets cannot insulate buyers the rising cost pressures indefinitely. – Sunday Telegraph
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(Sharecast News) – Online retailer Asos told investors at its capital markets day event on Wednesday that it was aiming to double its profitability in the long-term as part of an effort to right the ship after the abrupt departure of former chief executive Nick Beighton.
ASOS asserts potential for expansion in the UK and abroad
(Adds background, detail)LONDON, Nov 10 (Reuters) – British online fashion retailer ASOS laid out how it planned to meet its medium and long term profitability goals, seeking to restore investor confidence after it abruptly parted ways with its CE…
* Sees long-term EBIT margin of at least 8%* Wants to double size of business in EU and U.S.* Shares unchanged after early rise (Adds analyst comment, share price)By Sarah YoungLONDON, Nov 10 (Reuters) – British online fashion retailer ASOS laid ou…
LONDON, Nov 10 (Reuters) – British online fashion retailer ASOS laid out how it planned to meet its medium and long term profitability goals on Wednesday, seeking to restore investor confidence after it parted ways with its CEO last month and war…
(Sharecast News) – All eyes on Wednesday will be on the latest consumer price inflation numbers in the States.
(Sharecast News) – Public sector pay may be due for a rise, the Chancellor hinted on The Andrew Marr show. Sunak said that going forward a new pay policy would need to be set and that it would be a topic for next week’s spending review. Public sector pay rises had been "paused" in 2021/22 expect in the NHS and for workers making less than £24,000. – Sunday Telegraph
(Sharecast News) – More than 35 retailers, manufacturers and investors including Tesco, John Lewis, Primark, Asos and Unilever have called on the UK government to introduce a legal requirement for companies to carry out human rights and environmental checks on their global supply chains.
* Retail sales volumes drop by 0.2% in September* Data underlines weak demand/strong inflation conundrum for BoE* Retail sales now 1.3% below level a year ago* Inflation surge clouds outlook for household spending* Supply-chain problems lead to some…
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