ย
Today we are watching…
1. Tui Groupย (#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 companyโs existing share counts, which is not good for investors, but itโs 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 thereโs 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. Weโll 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. Weโre seeing queues around the block for Smith and Wessonโs products; rifles, handguns, rugged firearms of all types. The companyโs valuation has more than doubled this year already. Itโs the stock weโre watching. Thereโs always danger that something goes wrong big-time for a gunmakerโs 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. Itโs eyeing up a more permanent market share!