Sunday share tips: Jimmy Choo, Genel Energy, Gulf Keystone, Ironveld
Jimmy Choo shares were rated as worth holding in the Sunday Times' Inside the City column. The upmarket shoemaker sashayed into the upper echelons of global brands and appeared likely to reap the rewards of its popularity among China's mushrooming middle classes as it floated in 2014. However the shares have been tripped up worries about the economic slowdown in the People's Republic and are back below their 140p flotation price.
FTSE 250
20,508.75
15:45 15/11/24
FTSE 350
4,453.56
15:45 15/11/24
FTSE AIM All-Share
728.67
15:45 15/11/24
FTSE All-Share
4,411.85
15:45 15/11/24
Genel Energy
84.40p
15:39 15/11/24
Gulf Keystone Petroleum Ltd Com Shs (DI)
143.60p
15:45 15/11/24
Ironveld
0.04p
16:55 14/11/24
Jimmy Choo
230.00p
16:30 30/10/17
Oil & Gas Producers
8,043.72
15:45 15/11/24
Personal Goods
13,736.36
15:45 15/11/24
Support Services
10,885.48
15:45 15/11/24
Final results this coming Tuesday will allow management to remind the market that the brand actually is 'under-exposed' to Asia, in a sense, with only 10% of turnover coming from the region, excepting Japan. Jimmy Choo has demonstrated early signs of being able to outpace the wider luxury market, though it is still early days. With major shareholder, Wolfgang Reimann's JAB Luxury investment vehicle, owning more than two thirds of the stock this can produce a shock absorber effect between the underlying business and the market.
Shares in Genel Energy and Gulf Keystone Petroleum should be sold, said Questor in the Sunday Telegraph. The Kurdistan focused oil companies have both disappointed of late. Gulf Keystone's admitted that it would be in trouble unless it can find new funding and restructure $250m of its debts that need paying in the next 12 months, and another $325m by October 2017, having failed to find a buyer.
Genel, run by former BP chief Tony Hayward, was already suffering somewhat from its source of revenue, the Kurdistan Regional Government (KRG), having become increasingly stretched by fighting a war against the Isis/Daesh. And recently the company admitted one of its main oil fields, Tak Tak, was around two thirds smaller that it had originally believed. As a result Genel's 2015 figures showed this write-down and others had led to a $1.2bn loss. Although the KRG is now able to pump oil through a new pipeline built to Turkey, disagreements with Iraq over how to share oil revenues have continued and payments to Genel and GKP remain less than regular.
Ironveld is a speculative punt for more adventurous investors, according to Midas in the Mail on Sunday. This South African mining tiddler specialises in high-purity iron powder, rather than volatile iron ore, as well as vanadium and titanium. From its assets in the Bushveld complex in the Limpopo province, Ironveld aims to move into production in 2017 and raise this to 42,000 tons the year after. High purity iron is lightweight and used primarily in car gearboxes as well as airbag valves, coming into greater demand as car makers try to reduce vehicle weights.
Once production is up and running the company will benefit from costs being in rand and sales in dollars, while customers are said to be lining up already. But in order to create iron powder, Ironveld needs to raise the finances to build a $60m smelter. Part of the funds are likely to come from the state backing of its Black Economic Empowerment partners, with former Majestic Wine, Safestore and England and Wales Cricket Board chief Giles Clarke heading up the board's efforts to drum up City financial support. A share placing is expected in coming months.
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