THE TIPSTER
THOMAS Cook has had a terrible run this year, losing about 38 per cent of its value, to hit lows not seen since November 2008. The Middle Eastern situation, the weak pound, high fuel costs and lack of foreign holiday buying are all to blame. The shares look a brave bet to be buying right now, but the last time they hit a low around this level they bounced 100 per cent in four months. With a p/e of 5.2 and 8.6 per cent yield, Thomas Cook may be worth buying. Spread Co offers 127.22p-127.62p.
Retailer HMV has had its ups and downs. It is reporting figures on Thursday, but has already stated that the first three months of the year have been tough. However, its luck may be about to change as it is due to offload 125 Canadian stores, has secured a £220m refinancing deal, and also recently sold off Waterstone’s for £53m. Capital Spreads quotes 9.2p-9.4p.
Concerns that the Chinese economy is slowing – and that pressure will be put on the population to stop saving and start spending – has been eroding the price of gold of late. As a result, the precious metal has been toying with territory below the $1,500/oz mark, but many may see this as a clear buying opportunity. The risk of default in Greece is still real, while the US is still failing to resolve the debt ceiling issue. Current IG Markets price is $1,501.9-$1,502.5.