Whitbread PLC

Whitbread PLC (LON: WTB) is listed on FTSE 100 index. It is a British multinational hotel and restaurant company headquartered in Houghton Regis, England. The Company was founded as a brewery in 1742.

Investment Rationale – Watch at GBX 3,047.00

• Adverse Impact on Market Demands: The Company expects lockdown restrictions to extend through the winter and into FY23, putting downward pressure on market demand in the travel and leisure sector.
• Recovery in Trade Commerce: UK commerce recovers despite Omicron COVID19 variant outbreak with total UK accommodation sales growing 5.1% ahead of FY20, representing a 20.8% outperformance against the M&E (Media & Entertainment) market.
• Expected Inflation: The Company’s take on the industry's projected inflation rate for FY23 is an average of around 78%, which could impact its cost base by around £1.4 billion.
• Unfavourable Technical Indicators: The stock price is hovering lower than the 100-day simple moving average, indicating a further downward trend.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the weak market demands, adverse inflation, and unfavourable technical indicators, we have given a "WATCH” recommendation on Whitbread PLC at the current market price of GBX 3,047.00 (as of 24 January 2022 at 08:53 AM GMT). However, buy and holding levels should be looked at as per investors' risk appetite for any profit booking scenario.

Futura Medical PLC

Futura Medical PLC (LON: FUM) is listed on FTSE AIM All-Share Index. It is a pharmaceutical company that focuses on developing a product portfolio based on its DermaSys transdermal technology.

Investment Rationale – Watch at GBX 30.90

• No Commercial Production: The Company has not generated revenue for H1FY21 due to the non-starting of its commercial production.
• Increase in Net Loss: The Company’s net loss has increased to £1.59 million in H1FY21 against £1.06 million in H1FY20.
• New Gel Formulation: The Company will launch MED3000, the gel-based formulation, in 2022, subject to US regulatory approval. Further, The Company has moved to the next phase of its commercialisation and is expected to announce it shortly.
• Unfavourable Technical Indicators: From a technical viewpoint, the stock is trading below the simple moving average of 50 and 100 days, indicating the bearish stock price position.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the no revenue generation, continuing losses, and bearish technical indicators, we have given a “WATCH” recommendation on Futura Medical PLC at the current market price of GBX 30.90 (as of 24 January 2022 at 08:40 AM GMT). However, buy and holding levels should be considered as per investors' risk appetite for any profit booking scenario.

LoopUp Group PLC

LoopUp Group PLC (LON: LOOP) is listed on FTSE AIM All-Share Index. It is a cloud communication and collaboration service provider for businesses globally. The group's flagship Microsoft Teams Calling solution enables customers to eliminate different on-premises phone systems and multiple telecommunications service providers.

Investment Rationale – Watch at GBX 17.30

• Decrease in Top Line: The Company has posted revenue of £11.50 million in H1FY21 compared to £31.89 million in H1FY20, resulting from a substantial decrease in revenue.
• Weak Cash Position: LOOP has reported cash and cash equivalents of £5.02 million in H1FY21 compared to £8.28 million in H1FY20 due to decreased revenue.
• Posted Heavy Loss: The Company has incurred a loss of £4.5 million in H1FY21 compared to profit after tax of £6.99 million in H1FY20.
• Bearish Technical Indicators: From a technical front, 50 days simple moving average of GBX 19.93 indicates a correction in the stock price.
  

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the weak top line, weak cash position, and bearish technical indicators, we have given a “WATCH” recommendation on LoopUp Group PLC at the current market price of GBX 17.30 (as of 24 January 2022 at 09:22 AM GMT). However, buy and holding levels should be looked at as per investors' risk appetite for any profit booking scenario.

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