ShareHub Hotlist 2017 – Week 50

Not long left to year end and it’s looking like another terrific year for major US indices. DOW, S&P and Nasdaq all setting new highs for the year. Across the pond, Brexit has capped the FTSE100 at under 7500 levels for months with no sight of 8000 being tested anytime soon. That said, if commodities takeover the bullish trend in 2018, then the FTSE100 should stand a chance of breaking 8k as BP, Glencore, AngloAmerican and others should edge higher. Markets will need a helping hand from China in terms of growth and commodity demand. Thus far China has shown some strength against weaker market expectations. US Tax breaks should keep the US economy going strong which in turn should feed through to China. The biggest indicator of all for commodities is M&A. It’s been lacking in 2017 and it’s a sign that caution still rules the roost at present time. After a few quarters of positive earnings and some signs of debt reductions across the sector, the predators may begin to swoop on companies that are vulnerable to low ball offers. Shareholders can become ‘bored’ and ‘impatient’ and no one likes to see cash values trading sideways. If predators present decent offers that bring forward likely ‘realised’ valuations by 12 months – it might be hard for some to turn them down. Companies that are certainly vulnerable to M&A are, Petrofac, Tullow, Premier Oil, Enquest, Amerisur and Faroe to name a few.

Week 50:
A pretty solid week for ShareHub picks bolstered by a resurgent QFI. The move from 3p to 13p has been fast and just shows how wrong market pricing is these days. Smallcaps are often left to drift to levels that are beyond belief and the process can take months. It’s frustrating for shareholders. But when news comes in good, the turn-around is fast, leaving some on the sidelines stranded. A similar swift turn-around was seen on CERP last week. One moment the stock is drifting down into the low 5p levels and then next it is testing 7p. CERP is due to update the market on production levels before year end and should the numbers beat guidance levels, the share price could be in double digits in no time.

The DailyMail picks lead with the Telegraph a tight second. TheShareHub top ten was the strongest performer and has clawed back over 10% in gains over the last 2 weeks. If it continues like that, it could be a blue end to the year. I wouldn’t hold your breath on that one, but a recovery all-the-same is welcome.