Shaftesbury (full-year earnings 27 November)
Shaftesbury is forecast to report a 10% rise in revenue, for the year, to £123 million while net come increases by 16% to £52.5 million. The average move on results day is 2%.
Unlike British Land and others, Shaftesbury’s focus on central London means that they have not been as badly affected by retail weakness, and also gives them some measure of insulation against the disruption caused by Brexit. The firm retains plenty of funding for further acquisitions, and to provide cash for renovations to sustain the appeal of its areas such as Chinatown and Carnaby Street. At 45 times earnings, the shares are at their cheapest level in four years, well below the five-year average of 53.7.
The shares have declined steadily since May, and faltered around the £9.35 in early November. However, since then the drop back has created a higher low, providing some hope that another attempt to break trendline resistance and then challenge £9.35 may be in the offing. A decline back below £8.80 suggests a move to the October lows at £8.65.