THE TIPSTER
SHARES in online clothes retailer Asos tumbled nearly £2 on Friday, despite pre-tax profits rising 41 per cent to £28.6m. Asos is an AIM-listed company with a market cap of £1.6bn, so the question remains how sustainable the price is at almost five times sales. You can’t knock the ambition though. It has big plans for further global expansion, with Australia potentially the largest growth area. Capital Spreads quotes 2,068.3p-2,076.7p.
It was hardly full steam ahead for Hornby, the maker of model railways, as earnings faltered at the end of last week. But the announcement of a licensing agreement with the Star Wars franchise had a stellar impact on the company’s share price, adding over 8 per cent during Friday’s trade. The stock is now trading at its highest level since the profit warning was issued back in January, but ambitions for the profitability of this licensing deal must be high if this rally isn’t to quickly run into the buffers. IG Index offers 130.2p-131.1p.
Crude oil futures have been on a roller-coaster ride lately. But if you take a closer look at the charts, crude has been trading in a tight range for a month now, between $103.30 and $96. If you draw a Fibonacci retracement between the $84 to $115 move, the 50 per cent retracement level comes in at $99.55, with the 38.2 per cent level at $103.30 and the 61.8 per cent at $95.83. A Fibonacci follower’s dream. Look to play the edges of this range until it breaks. Spread Co offers a spread on July US Crude of $98.52-$98.56.
Security services firm G4S has risen nearly 20p in the past two weeks and sentiment is still strong. It recently announced the acquisition of Detcon, which designs and installs fire detection and CCTV systems. Currently trading at an all time high, the stock is above its 20 and 50 day moving averages, which is a positive signal for traders. Capital Spreads quotes 290.8p-291.4p.