Physiomics shares have nearly doubled over the past week after announcing two separate contract awards. Yesterday, the company said it had won a contract with a new client and had received a further contract from an existing client.
Physiomics shares were 44% higher to 1.9p at the time of writing on Friday after trading below 1p this time last week.
Longstanding client global pharma giant Merck has awarded Physiomics with an additional contract involving pre-clinical and clinical modelling and simulation of anti-cancer regimens involving combinations of DNA damage/ repair agents. Merck has engaged Physiomics for a similar service previously.
Physiomics CEO, Dr Jim Millen, commented on the Merck contract:
“We are pleased that this longstanding client has once again chosen Physiomics as a partner for outsourced modelling. We look forward to the possibility of further projects with Merck during the current financial year.”
In addition to the Merk contract, Physiomics yesterday afternoon announced a £125,000 contract with a new UK-biotech company.
Investors are locked in a dynamic industry where financial markets change based on many factors. Those investors with lasting success develop long-term strategies and stick with them long enough to reach their goals. Today, investors and financial market traders have access to more tools than they did a few decades back — tools that help improve the planning, execution, and accuracy of trading.
TradingView: The All-in-One Platform
On Tradingview, investors can use various strategies to become successful in whatever market they trade. TradingView is an all-in-one charting platform that has developed into a trading ecosystem for investors, providing advanced charting, analytical tools, and other features that improve trading efficiency.
You can leverage TradingView for long-term investment success, whether you’re a beginner or a professional trader.
Getting Started on TradingView
The first step to utilise TradingView is to register on the platform. There are two paths to do this:
Register on the TradingView website directly, and then connect your broker account and start trading.
Register on your broker account and locate the TradingView gateway to use the platform.
Once you connect with your broker, it is essential to set up your dashboard to suit your investment plan. Locate the instruments or assets you want to invest in and ensure they are available on your broker account.
You can also set up the colours, price alerts, and analytical tools to help you analyse and trade effectively.
TradingView Expansive Charts
Charts are some of the basic and most essential tools for investors and traders. Charts provide historical data on price movements; traders analyse these data to identify patterns and important levels to predict future movements.
TradingView has expansive charts with a wide range of modern tools and features. For example, you can easily switch from one time frame to another, from higher to lower or lower to higher, use trending lines to identify the market direction and find crucial price levels with indicators. There are also tools to help traders calculate their entries and exits and finetune their strategies when trading.
These are important for traders who want to be successful in the long term. Traders can use these charting tools to analyse the market, monitor events, and make adjustments where necessary.
Backtesting Strategies on TradingView
Backtesting is a way to simulate trades using historical data. This allows trailers to test their strategies on previous market movements to test how the strategy works. Backtesting is an effective method for developing, testing, and tweaking different strategies.
TradingView allows traders to backtest strategies, but there are limits to the access on free basic accounts, while premium users can access more data and tools to backtest. Traders can backtest manually using the Bar Replay function or automate the process using TradingView’s native Pine Script.
Here’s how to backtest for long-term investments:
Choose the trading instrument and timeframe.
Click on the ‘Replay’ button on the menu bar.
Navigate the playtime to go back or forth.
Identify your trading setup, enter a buy or sell position, and record the results.
Backtesting offers a way to test your strategies without exposing your investment portfolio to market volatility.
TradingView News Portal
News events are important to investors across all markets or sectors of the economy. Long-term investors often use strategies that adjust to market changes over time. TradingView allows investors to follow global news events from the dedicated portal and make crucial investment decisions.
You can leverage TradingView’s platform for news trading — a way to enter or exit trades based on the impact of news events on the market. Examples of news include the Consumer Price Index (CPI), Non-Farm Payroll (NFP), and monetary policy announcements.
Automate Trades on TradingView
Long-term trading involves many repetitive tasks, such as price tracking, analysis, and entering tasks. Manually performing these tasks may be tedious for investors, especially in the long run. Automating trades allows investors to take trades through minimal manual inputs and to take trading opportunities in their absence.
Automation is useful for investors who hold trading positions for long periods. For example, an investor might automate a bot to buy or sell a stock or currency if its price hits a particular level.
Here’s how to create a trading bot on TradingView:
Log in or register a TradingView account via your broker.
Create a new trading bot, use a pre-existing bot, or import a bot from another source. Ensure all imported bots are compatible with TradingView.
Configure the bot parameters to reflect your trading plan.
Link the trading bot with TradingView alerts for instant execution.
Test the bot on demo accounts to confirm its functions.
Creating a Long-Term Investment Plan
Having the right trading platform is one part of becoming a successful investor; having an effective long-term plan is also crucial to achieving your goals. Here’s how to create a long-term investment plan:
Determine your long-term goals: Write your financial target and set a time for it. For example, you can aim to increase your portfolio by 20% in 12 months or make an extra $10,000 in the same period.
Set objectives: Break down your investment goals by objectives. Make each objective clear and achievable.
Diversify your portfolio: Portfolio diversification reduces the exposure to market volatility. Divest your assets across high-volatility and low-volatility instruments.
Use compounding to grow your portfolio: Compounding assets means reinvesting all or some of your profits to increase your returns over time. Compounding is an effective way to grow your portfolio while securing partial profits in the long term.
Conclusion
TradingView is a popular place for traders looking for an all-in-one solution for analysing, trading, and interacting with other global investors. Traders looking at short-term or long-term investments can leverage TradingView to design and test their strategies. TradingView offers advanced features and tools for effective trading.
THG shares are approaching a key level of resistance at 110p. Shares have traded above this level only briefly in 2023 and investors will be gearing up for a test of this resistance level in the near term.
Whether the THG share price can break 110p will depend largely on September’s half-year results and if the company has managed to bring costs under control.
The company posted record sales of £2.2bn in 2022 but cost inflation limited Adjusted EBITDA to just £64m. Soaring administrative costs were to blame with a 14% increase in costs to £507m.
Indeed, costs will be key in the half-year report as the top line looks to be under pressure following a poor Q1. Q1 2023 group revenue fell to £469.4m, an 8% reduction from £513m in the same period a year prior.
Slower sales in the Beauty and Ingenuity units were the problem with both recording double-digit declines.
The macro-environment has not improved in Q2 and investors may be concerned the disappointing trading continues.
Investors may also be worried about THG’s valuation. THG currently trades at an EV/EBITDA ratio of 20. This is expensive compared to ASOS (7.2), Boohoo (8.7) and AO World (12.8).
For THG to fall in line with peers there needs to be a big increase in EBITDA or a sharp drop in the THG share price.
WPP is one of the most highly cyclical FTSE 100 constituents whose fortunes depend on the health of the underlying global economy.
Advertising and marketing is one of the first things companies cut back on when things become tough.
WPP investors were reminded of this earlier this year when the company reported 4.1% reduction in North American revenue and a 43% fall in group operating profit. Group revenue was 6.9% higher on a reported basis.
WPP attributed falling revenues in North America to reduced spending by large US tech companies. It’s likely many more companies across a varied selection...
The FTSE 100 paused on Thursday as investors awaited major economic data to be released tomorrow, and a raft of FTSE 100 companies traded ex-dividend.
August has been the worst month of 2023 for stocks, with US, European, and the UK’s indices posting declines.
The FTSE 100 was trading up 5 points at the time of writing on Thursday and is down 2.9% in August.
However, in the context of prior drawdowns in equity markets, August has been relatively benign. This poses the question of whether September will continue with August’s poor performance or if buyers will step in to support stocks.
The first indicator of how things will go in September will come in the form of the US jobs report tomorrow, which has the potential to set the tone in risk assets.
US equities have rallied this week after several softer economic data points increased hopes the Federal Reserve would hold off increasing rates at their next meeting. Tomorrow’s Non-Farm Payrolls report will be closely watched to see if it corroborates recent softer data.
“The FTSE 100 was holding on by its fingertips to its latest move higher as investors awaited the latest reading of core inflation from the US,” said AJ Bell investment director Russ Mould.
“The markets are so data driven right now, aping the stance adopted by central bankers, and it feels like a worse than expected reading could extinguish the recently improved sentiment.”
There is a clear divergence in US and European inflation, which will soon play out in central bank action. The Bank of England looks set to hike rates at its next meeting, while the Federal Reserve has ample reason to hold off.
Going into September, investors should be cautious of a strengthening pound that may cap gains in the FTSE 100’s overseas earners.
Today’s movers were dominated by companies trading ex-dividend, including Glencore, Antofagasta and Diageo.
Top performers Ocado and Rolls Royce enjoyed end-of-month window dressing with gains of 2.2% and 2.4% respectively. Rolls Royce is this year’s top-performing FTSE 100 stock, and fund managers clearly want to be seen to be holding the stock.
Revolution Beauty (LON: REVB) has appointed Lauren Brinley as chief executive. The beauty and cosmetics products supplier also published its 2022-23 accounts, which means that trading in the AIM-quoted shares will not have to be suspended tomorrow. Even so, the share price slumped 15.5% to 28.95p.
Lauren Brindley was until recently head of American retailer Walgreen’s beauty and personal care operations across its stores and online. Prior to that she worked at Boots and Tesco. Revolution Beauty has new distribution agreements with Walgreens and Boots.
Bob Holt has stepped down as chief executive and from the board and Alistair McGeorge will become non-executive chairman. Colin Henry and Chris Fry have been appointed as independent non-executive directors. The latter provides finance expertise. Jeremy Schwartz, Rachel Maguire and Matthew Eatough have resigned as directors.
Results
In the year to February 2023, revenues edged up 2% to £187.8m, while the loss reduced from £45.9m to £33.9m. That masks improved trading in the second half.
Net debt increased from £8.4m to £21m. There was £11m in cash and the bank facility of £32m was fully drawn. Inventory was reduced so that helped cash flow.
Revolution Beauty says that it is currently performing ahead of internal expectations. First quarter sales were 60% higher, but there was destocking in the corresponding period last year. EBITDA was £3.5m in the period. Net debt increased to £21.5m.
Online sales were 12% lower last year and Lauren Brinley has experience of improving digital performance at Walgreens.
Harland & Wolff (LON: HARL) says that the judicial review of the Islandmagee gas storage project in Northern Ireland is in its favour. It will consider the full judgement and assess the appropriate next step. This has been a long running saga and the company will need to consider how to move ahead with and finance development of the project. The share price jumped 22% to 18p.
Kodal Minerals (LON: KOD) has agreed an extension to the funding package deadline with Hainan Mining Co. The new deadline for the financing of the company’s Mali lithium assets is 30 September. Kodal Mining is finalising the restructuring of the ownership of the assets. Engineering design work and a mineral resource update are currently being worked on. The share price moved up 18.6% to 0.51p.
Crossword Cybersecurity (LON: CCS) is improving margins and interim revenues were £1.9m and overheads are being held down. Annualised recurring revenues are £2.7m. Management believes the cyber security company can achieve 2023 revenues of £6m and £8m in 2024. The company is raising cash from a five-year, convertible loan note of up to £2.015m – shareholders have agreed to £2.5m of loan notes being issued. This will fund sales and marketing, plus product development. This could lead to cash breakeven in the second half of 2024. The share price increased 15.4% to 7.5p.
Oil and gas company i3 Energy (LON: I3E) announced better than expected interims. Production was around the level forecast, but lower costs meant that pre-tax profit improved from £9.9m to £14.5m. However, lower gas prices have led WH Ireland to reduce its fair value from 22.3p/share to 21.1p/share, although the broker believes that oil prices may rise over the next six months and that could reverse the fair value reduction. The share price rose 8.85% to 13.78p.
FALLERS
Summary results for the phase II dose ranging study assessing Orenetide for hypoactive sexual desire disorder were disappointing and that has hit the Ovoca Bio (LON: OVB) share price, which slumped 82.1% to an all-time low of 2.5p. The results of the study in Australia and New Zealand show that the treatment was not statistically significantly better than placebo. The company will have to decide how to move forward with the product and whether it should continue development. Ovoca Bio had €2.6m in the bank at the end of July.
Application specific integrated circuits designer Sondrel Holdings (LON: SND) has been hit by contract delays. Three major customers have delayed development for 6-12 months because of economic uncertainty and concerns about consumer confidence. Interim revenues will be 17% higher at £9.3m, but the full year forecast has been cut from £28.4m to £13m. Sondrel is likely to move into a net debt position by the end of 2023, but this should be temporary. The share price dived 63.4% to 20.5p.
Eneraqua Technologies (LON: ETP) says proposed changes to net nutrient rules could reduce its profit by up to £2m/year. The rules are designed to ensure that new property developments do not increase nitrate emissions. Eneraqua’s Control Flow HL2024 technology is designed to perform this service. The change to a national scheme could provide opportunities, but there will be continued uncertainty for the next few weeks. The current year’s figures are underpinned by contracts, but Singer has downgraded its 2024 pre-tax profit forecast by 28% to £5m, compared with £10.1m in 2023. The share price slipped 21.1% to 75p.
Global Petroleum (LON: GBP) is raising £250,000 at 0.1p/share and each share comes with a warrant exercisable at the same price. The share price fell 21.9% to 0.125p. The cash will be used to fund technical work on the PEL 94 licence area in Namibia, which has been extended to September 2025.
Ex-dividends
Knights Group Holdings (LON: KGH) is paying a final dividend of 2.5p a share and the share price fell 3p to 89p.
STM Group (LON: STM) is paying a final dividend of 0.6p a share and the share price is unchanged at 50p.
Supreme (LON: SUP) is paying a final dividend of 2.2p a share and the share price slipped 1p to 129p.
The UK Investor Magazine team has been on the hunt for three shares to add to a balanced portfolio.
These stocks are relatively stable FTSE 100 companies and offer a balance of growth and progressive dividends.
We have selected these stocks due to their robust earnings history, ability to increase their dividend, and weather adverse market conditions. This is not investment advice.
Prudential
Prudential provides wealth management and insurance services in Asia and Africa and has enjoyed strong growth in the most recent period.
Concerns about the Chinese economy have caused elevated levels of uncertainty around China-focused FTSE 100 companies, including Prudential.
However, strong performance in their insurance business in the first half of 2023 has gone a long way in dispelling fears about the health of their business.
The company has revealed a new strategy to improve its business’s technological capabilities in its target markets of Africa and Asia.
An investment in Prudential is an investment in the expansion of the middle classes in Africa and Asia.
As these emerging markets enjoy improving living standards and growing wealth, people will demand the life insurance and wealth management services offered by Prudential.
This sets the company up for long-term growth going into the future. Prudential pays a reasonable dividend and has steadily increased payouts.
Investing at 990p will yield 1.5% – not an amazing yield but the focus here should be capital growth.
Shell
FTSE 100 stalwart Shell is a fantastic income choice.
Oil prices are being propped up by the cartel of oil-producing companies, OPEC, which is supporting Shell’s earnings and ability to pay dividends.
The oil major’s recent results reflect a normalisation in the oil market after prices spiked last year following the invasion of Ukraine by Russia.
Oil refining margins have fallen and gas trading activity has subsided. This was to be expected and hasn’t impacted the share price tremendously.
Shell has vast resources and will weather any major downturn in markets making it a reasonably safe pick for long-term investors.
While the company is historically known for producing oil and gas, Shell has made substantial investments in clean energy in preparation for net zero targets due to come in for 2050.
Shell is far from becoming an out-and-out clean energy company, but it has taken the first steps in their journey to becoming one.
Shell currently yields 3.6%.
Next
Next is a true bellwether of the UK high street and the company has time and again proved to be the top retail pick of FTSE 100 companies.
Where Next lacks amazing growth potential, it makes up for it with stability.
The company has successfully navigated the pandemic and utilised its catalogue and online channels to support sales through the toughest economic conditions for decades.
During a period when other retailers are collapsing into administration, Next has grown sales and lifted profit guidance.
One would expect to see Next shares fall if the UK economy enters recession but this will likely prove to be an entry point for long-term investors.
Rosslyn Data Technologies (LON: RDT) hopes to raise at least £2.7m from a placing and subscription at 0.5p/share and a retail offer to existing shareholders could raise up to £500,000 more. The current share price is 0.5p (0.45p/0.5p) and the cloud-based data analytics company is valued at £1.7m. In May 2020, the company raised £7.3m at 5p/share.
Non-exec chair James Appleby will subscribe for 21 million shares and non-exec director Bernard Quinn is subscribing for two million shares. There are also plans for a 50-for-one share consolidation. There will be a resolution at the general meeting on 18 September to gain shareholder approval.
On top of the share issue, there is a proposed issue of 10% convertible loan notes to raise £600,000 from Hargrave Hale AIM VCT, Octopus AIM VCT and Octopus AIM VCT2. The conversion price is the lower of 0.5p or the issue price of another fundraise.
Funding
Portsmouth-based Rosslyn Data Technologies has a new management team that wants to grow annualised recurring revenues to between £12m and £15m, compared with £2.4m at the end of April 2023. That is based on a trading statement because the accounts have not been published.
House broker Cenkos estimates net cash of £800,000 at the end of April 2023 and £695,000 at the end of June. Much of that cash is likely to have been used up because of continuing losses. The monthly cash burn was £195,000 in June.
The business has been refocused on a SaaS model and costs reduced. The additional cash will be spent on product development and marketing.
Retail offer
The retail offer is available via intermediaries, which will be listed on https://www.bookbuild.live/deals/9Y7561/authorised-intermediaries. There are currently intermediaries awaiting confirmation even though the bookbuild has commenced. The retail offer is open until 4.30pm on 5 September. The amount being raised is £500,000 so that the company does not have to publish a prospectus. The minimum subscription is £500.
This is a highly dilutive fundraising. The share consolidation could lead to a decline in the share price after it comes into force. That could provide a buying opportunity at below the 25p equivalent consolidation price.
The FTSE 100 gained on Wednesday as interest rate expectations boosted sentiment while Prudential led the index higher after announcing bumper new business metrics and increased their dividend.
The FTSE 100 was 0.37% higher at the time of writing.
Expectations the Federal Reserve will hold off hiking rates at their next meeting have increased after a series of softer US economic data. Dovish expectations have helped support equities with London’s leading index joining a rally in US equities.
“What appears to be bad news for the US economy is being notched up as good news for equities with a weakening jobs snapshot and slide in consumer confidence lifting indices. Signs of America’s cooling economy have raised hopes that the pause button will be pushed on punishing interest rate hikes,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
Markets have been digesting a raft of US economic data points with more to come later in the week. The highly anticipated Non-Farm Payrolls will be released on Friday and will be pored over for indications of the Federal Reserve’s next move.
Prudential
Prudential shares have been pulled from pillar to post by China’s spluttering growth and unconvincing stimulus measures. Today’s half-year report demonstrates the China-focused insurance and wealth manager’s underlying operational strength with new business profit jumping 39% to $1.5bn.
“There might be trouble in China, but that’s not caused any major hiccups with Prudential’s performance. The Asian-focused insurance giant continues to benefit from increased activity across the Asian region,” said Matt Britzman, equity analyst at Hargreaves Lansdown.
“In particular, domestic demand in Hong Kong and travellers coming over from mainland China following the opening of the border in February continue to act as a tailwind for new business. Market share performance was encouraging, especially given the tough competitive landscape in the region.
Newly minted CEO, Anil Wadhwani, has now completed his strategic review and set out plans for the medium-term future at Prudential. Nothing here looks like a major overhaul, increased focus on delivering tech distribution and more consistent client journeys across products and geographies all make sense. Organic growth and retention of existing customers look to be key, with the end goal being 15-20% growth in new business profit over the five years to 2027.”
