Sunday share tips: Adriatic Metals, Pets at Home
The Financial Mail on Sunday's Midas column called attention to silver producer Adriatic Metals, arguing that its shares may "prove rewarding for the adventurous punter".
FTSE 250
20,892.74
16:54 03/12/24
FTSE 350
4,607.59
16:54 03/12/24
FTSE All-Share
4,562.54
16:50 03/12/24
General Retailers
4,790.89
16:54 03/12/24
Pets at Home Group
234.20p
16:40 03/12/24
Its boss, Paul Cronin, had managed to take the miner, which was based in Bosnia and Herzegovina, from the exploration phase through to production in only seven years.
Cronin was also looking at a potential second mine in Serbia, as well as elsewhere on the Continent, that could help Europe cut its reliance on Chinese and Russian commodities.
Annual demand for silver meanwhile had grown by around 200m ounces since 2014, the second-highest figure ever, but supply was about unchanged.
Hence, as stores of the metal shrank, prices were seen jumping from $30/oz. at present to $35/oz. by the end of 2024 and to above $50 by December 2025. Long-term predictions meanwhile suggested a price of almost $350/oz. by 2030.
The Sunday Times's Lucy Tobin told her readers to 'buy' shares of Pets at Home.
Last September the Competition and Markets Authority had launched a review of the £5bn veterinarian industry, resulting in the shares erasing around a quarter of their value, she mused.
But she judged the risks from that review to be limited.
Indeed, the business had "significant" growth potential left vet and grooming services.
Tobin noted research from Liberum regarding the company's new single distribution centre, which the broker's analyst, Wayne Brown, was akin to an Amazon Prime for every pet.
The new centre would also give the business access to more client data, Brown added.
However, Tobin conceded that a share price recovery might not materialise in 2024 as Britons might not be ready yet to splash out.
Hence, he thought the shares were "alarmingly cheap".