03 July Watchlist 👀

by 3 Jul, 2020

Today we are watching…

1. Tui Group (#tui)

In recent weeks, EasyJet and Lufthansa have raised equity capital, taking advantage of these market highs to sell more shares and get through this challenging period with more funds. This action dilutes these company’s existing share counts, which is not good for investors, but it’s a no-brainer for Tui Group to do the same. The travel company is burning hundreds of millions of dollars per month, and reclosures are not off the cards. A legion of short-sellers believes there’s still some juice left in the stock for management to squeeze out, even if only for the purpose of ensuring the stock can survive at all in the coming years. We’ll see what happens!

2. Smith & Wesson Brands (#aobc)

The prospect of further looting and rioting has Americans feeling a lot less safe, so Smith & Wesson might be your downside hedge in markets, assuming it makes it through an ethical investing filter. We’re seeing queues around the block for Smith and Wesson’s products; rifles, handguns, rugged firearms of all types. The company’s valuation has more than doubled this year already. It’s the stock we’re watching. There’s always danger that something goes wrong big-time for a gunmaker’s brand. These usually trade like sin stocks with weapons regulation always feared, but this boon has come at a perfect time for Smith and Wesson with a bevy of new products being offered. It’s eyeing up a more permanent market share!

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