Five to buy
Foresight Sustainable Forestry
(The Mail on Sunday) Foresight Sustainable Forestry Company will be key to the government’s plan to plant trees across 75,000 acres a year to help absorb carbon dioxide, while providing investors with annual returns of at least 5% above inflation. The group will float on the London Stock Exchange later this month and aims to raise up to £200m at £1 a share. Just 13% of the UK is forested, so there is ample scope for growth; timber prices have grown at a rate of 6% a year, a trend expected to continue. The company will initially generate revenue from timber sales.
IWG
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(The Sunday Times) The shared-officer provider has “breathed a sigh of relief” at the return to work. IWG owns shared-office space provider Regus and it reckons occupancy levels at the offices it had pre-Covid-19 are now above 70%. IWG is considering spinning off its digital and tech businesses from its office-leasing arm in the hope that this will create more value for investors. IWG should benefit from flexible working as companies seek to downsize their offices to trim costs. It has a wide pricing range and offers access to private offices as well as shared spaces. 310p
Wickes
(The Daily Telegraph) DIY chain Wickes demerged from former owner Travis Perkins six months ago, so investors and analysts haven’t had enough time to get to know the stock. This gives investors “the chance to bag a bargain”. The business is well run and its relatively small stores are easy and cheap to refurbish. The prospects for the DIY sector “look favourable” as the housing market continues to boom and we keep improving our properties. Despite concerns about cost inflation and supply-chain problems, the company confirmed its positive guidance for the year in its third-quarter results. Now is a good time to buy shares in a promising company. 219p
Lok’nStore
(Investors’ Chronicle) Lok’nStore, the self-storage company, has vowed to pursue a “more progressive” dividend policy as it prepares to open new sites, encouraged by increased occupancy rates. In its annual results for the year to July it said it recommended an annual dividend of 15p per share, up from 13p in 2020 and marking the tenth consecutive yearly increase. The self-storage sector has been “relatively undamaged by national lockdowns”. Demand for storage soared when families “turned box rooms into home offices” and hospitality businesses looked for places to keep their furniture. There is a shortage of self-storage in the UK, which could provide exciting growth prospects, and the company has invested £26.9m in new facilities and secured a strong pipeline of new sites. 870p
Blade Air Mobility
(Barron’s) Blade “is bringing ride-sharing to helicopters”. Dubbed the Uber of the sky, the company oversees a network of 29 operators with different aircraft transporting passengers and cargo in cities around the world. It charges customers combinations of annual fees and ticket prices per ride, and takes a portion of the sales. It operates ten routes and is planning to expand to 28 by 2024 through acquisitions and organic growth. Blade is also a less risky way to invest in the trend towards electric vertical takeoff and landing (eVOTL) aircraft; these will use its network in future. Sales doubled to $30m in the first nine months of Blade’s fiscal year and it is getting close to making a profit. $11.28
..and the rest
The Daily Telegraph
Whitbread, the owner of hotel chain Premier Inn, is benefiting from the travel sector’s reopening. CEO Alison Brittain thinks revenue per available room could reach pre-pandemic levels this financial year. However, the company could be affected by rising supply costs or the return of travel restrictions, so hold for now (3,310p).
Investors’ Chronicle
Trainline’s shares dropped after its half-year results, which revealed that strong sales had been overshadowed by the government’s plan to create a state-owned ticket retailer. The company “is far from on track”: net debt remains high at nearly £170m. Sell now (303p). Travel magazine and events business Time Out had a tough pandemic as tourism shut down. Its street market and media businesses lost money in the year to 30 June, but margins rose thanks to an increase in digital advertising, which is more profitable than its print counterpart. Hold (55p).
Shares
Coca-Cola’s shares have “lost some fizz of late”, but the company’s acquisition of sports-drink maker Bodyarmor for $5.6bn could “add another string to its bow”. The company remains “an excellent long-term investment”. Buy ($56.17).
Motley Fool
E-commerce and online auction company MercadoLibre’s shares have more than quadrupled over the last three years. It is the e-commerce leader of Latin America, operating in 18 countries. The Latin American e-commerce sector is expected to double over the next four years. Buy ($1,632). Intuitive Surgical makes robotic surgical systems. Despite increased competition the firm has secured a large market share and has “tremendous” prospects. Buy ($365).
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FCA car finance compensation: £700 each expected for 14 million driversEligible motorists could begin getting a payout from next year under the financial watchdog’s planned car finance compensation scheme
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Reeves warned against property tax shake-up – 3 ways it could backfire on first-time buyersRachel Reeves reportedly has her eye on high-end property taxes in the upcoming Budget, but there are concerns a shake-up could unintentionally hamper those trying to get on the housing ladder
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Pierre-Édouard Stérin wants to make France great againConservative billionaire Pierre-Édouard Stérin is seeking to lead a political and spiritual renaissance across the Channel. The planning looks meticulous
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Global investors have overlooked the top innovators in emerging marketsOpinion Carlos Hardenberg, portfolio manager, Mobius Investment Trust, highlights three emerging market stocks where he’d put his money
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Pinewood Technologies: a drive for growthPinewood Technologies’ platform is one of the best in the business. Investors should buy in
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'EV maker Faraday Future will crash'Faraday Future Intelligent Electric is failing dismally to live up to its name, says Matthew Partridge
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Investors should cheer the coming nuclear summerThe US and UK have agreed a groundbreaking deal on nuclear power, and the sector is seeing a surge in interest from around the world. Here's how you can profit
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8 of the best houses for sale with folliesThe best houses for sale with follies in the grounds – from a five-storey Victorian Gothic tower in Tonbridge, Kent, to a former mill in Oxfordshire with gardens that include a folly on an island in a lake
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A tale of two Reits – why performance matters for valuationAEW UK and Regional are two Reits that are valued very differently, despite a shared focus on properties outside London
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Healthcare stocks look cheap, but tread carefullyShares in healthcare companies could get a shot in the arm if uncertainty over policy in the US wanes, but are they worth the risk?
