TRADING ROOM
Update on 30th October 2019
T+20, Spread Betting & CFD traders:-
UK stocks hitting new 52 week highs today include the following:- Astra Zeneca, Daily Mail & General Trust, Ferguson, Glaxo Smithkline, Serco, Segro & Gan.
Gan plc (epic code: GAN) is an AIM stock so there is no stamp duty on purchase. It is a gaming company and the recent liberalisation of gambling regulation in the US is driving the shares upwards. Gan provides software for internet gambling and is very active in doing deals in various states where gambling has been legalised.
It has a market capitalisation of only Stg£100 million. Of course it is still making losses so there is no P/E. It’s all about the future potential of the new gambling market in the US, so it is a classic ‘blue sky’ stock. Market cap of £100 million? I’ve seen much more ‘demanding’ valuations for ‘blue sky’ stocks than that in my time!
Gan had a trading update (3rd Qtr Key Performance Indicators) on 1st Oct, so we hope that means there won’t be any nasty surprises in the coming weeks.
CLICK HERE FOR THE CHART OF GAN.
Segro plc (epic code: SGRO) is a FTSE 100 company with a market cap of £9.2 billion, so it is not going to be as lively as Gan, that’s for sure. At first glance, it is a boring real estate investment trust (REIT). However, it is growing on the back of the continued development of on-line retailing, as it provides the warehouses required for storing the merchandise. It’s European business is where most of the growth is at present. It had a trading update on 16th Oct so it’s unlikely that there will be any disappointing news in the coming weeks. The shares are trading at a 12% premium to net asset value. REITs usually trade at a discount, but the recent news of Blackstone Group’s acquistion of Colony Capital Warehouses in the US could trigger a further wave of takeover activity in the sector pushing valuations higher.
CLICK HERE FOR THE CHART OF SEGRO.
Both Gan and Segro have strong buy signals from the 18 & 5 day simple moving averages crossovers.
S & P 500 micro mini futures ($5 per point) traders:-
The S & P 500 index has hit two all time highs this week and looks like it is breaking through the 3,000 to 3,025 resistance level. The 18 day and 5 day simple moving averages are both on an upward trend and the 5 day (green line) has crossed over the 18 day (purple line) recently. In addition, the candlestick chart has goven two buy signals, a ‘bullish engulfing candle’ followed by ‘two green gapping’. A fall to 2,970 would indicate that the upward monemtum has faltered.
It looks like we are heading higher so traders should buy.
CLICK HERE FOR THE CHART OF THE S & P 500 INDEX SHOWING 18 & 5 DAY MOVING AVERAGES.
CLICK HERE FOR THE CANDLESTICK CHART OF THE S & P 500 INDEX.