ShareHub Hotlist 2018 Review – Week 23

Another week passes and another UK retailer goes down. Poundworld has gone from selling products for £1 to ironically being sold lock, stock and barrel for £1. If the high street was a cliff, most retailers would be on the verge of going over it. Its an ever eroding cliff face. The sea of change comes in the form of a global digital tidal wave. It’s been on the cards for a few years now. The sad thing is, it probably won’t be too long before the ‘digital’ becomes the ‘bricks and mortar’ as branded Amazon stores start appearing in the high street. Stores which you can ‘instantly’ purchase what you require rather than waiting for 1 day delivery or a drone to drop your purchase off. That’s to come later. I have no issue with digital retail commerce, it brings with it many benefits. However, I do have a major issue with the likes of Amazon, Apple and Google paying minimal tax in the regions they trade in. Yes they generate some UK jobs but those jobs are not replacing the many UK retail job losses. In terms of taxes – it’s a massive issue that needs addressing. Trump and co are protecting American interests across the globe and it’s about time the EU and UK started slapping some firm ‘digital’ tax laws on these big American companies.

Last week saw the long and established London Stock Market wobble. Embarrassing for the LSE. More blushes were felt when news materialised that the FCA/LSE will press ahead with a controversial new premium listing to facilitate the Saudi Aramco IPO deal. Shameful stuff and just shows how greed drives mentality at the expense of credibility. Years of tradition and rules can be changed in a whisker if it means a decent pay day. Integrity ‘shot’ on that one but assuming all involved get a sniff of that $1 trillion due to hit the market it will make for a good bonus year. That said, it would not surprise me one bit if the vampire squid (GS) took the bulk of the order book as Trump and co has been cosying up with the Saudi’s of late. Certainly going to be an interesting IPO when it finally hits the market… next year?

Week 23 Review

Much of the same and a little like watching paint dry of late. I’m afraid the impending summer period is not likely to improve ‘market activity’ so best enjoy the sunshine and the footy over the coming weeks. The DailyMail continues to head the pack but TheShareHub has plenty in reserve for a strong H2. Top picks like AMER, HUM, CERP, PMO, TLW and so on should all do well as the drill bit turns and PoO continues to show strength. M&A is still missing in action but it might not be too long before the big super majors start picking off the little guys with large reserves. Ophir Energy looks primed like a T-bone on a sunny day. Keep you eyes on that one. Shell lost out on Cove Energy a while back and may well fancy taking OPHR out simply to gain a greater control/equity stake in Tanzanian assets. Due to being heavily oversold after the Fortuna Schumberger debacle, Ophir Energy is looking cheap especially based on potential production of 25kboepd post acquisition terms. Therefore, TheShareHub is initiating coverage on OPHR at 50p with a target on takeover being £1+. This is the 3rd heads up stock this year following MATD and PDL. There will be 5 heads up picks in 2018 with the latter 2 arriving exclusively in the email box of all ShareHub Subscribers.