Three important things you need to know from across the markets this morning from investment writer, Tony Cross.
The Helium driller saw shares extending Thursday’s gains as the weekend break loomed into site. The company posted a drilling update yesterday and whilst this made clear that further tests were needed, the reception was somewhat buoyant. However the stock was hammered in the latter part of 2023, so even gains over the last day and a half – which sit around 200% - still leave valuations a long way short of the price from just a couple of months back.
A trading statement from the builders merchants this morning may have painted a mixed picture but investors seemed keen to assess this as being a case of wheelbarrow half full. Full year sales may have been down by 0.3% but that was in line with guidance. Market share improved and pre tax profits are set to be at the upper end of forecasts. There’s arguably cause for concern given the shrinking size of the do-it-for-me market, which contracted by more than 13% in Q4. Part of this can be explained away as post-COVID normalisation but is consumer uncertainty still weighing here, too? Shares had been as much as 8% higher mid morning before giving back a little of the gains.
Over 50s lifestyle play SAGA issued a short note this morning, conforming media stories that it was considering moves for its cruise division that could increase capacity, free up capital and/or improve returns for shareholders. The exact process is still to be agreed, but that idea of paying down debt and sharpening up the financial performance seems to be catching a wave. Shares were up 8% at midday.
