Five stocks for an Olympic surge
Four Fidelity fund managers tell FE Trustnet which British companies they are backing to see a share price boost during what looks set to be a busy summer.
By Mark Smith, Senior reporter
Monday July 02, 2012
Braemar Shipping Services
“Braemar is a ship broking business that has diversified into other shipping related areas,” says FE Alpha Manager Alex Wright
. “It has the rights to a number of cruise liner berths on the River Thames.”
“Under normal circumstances, there are not a large number of cruise liners wanting to dock on the Thames. However, the Olympics has created a surge in demand for these facilities, as operators offer special Olympic packages. The company believes this extra demand will make a meaningful contribution to its earnings for the year.”
Data from FE Analytics shows that Wright’s Fidelity UK Smaller Companies
fund is the only fund in the IMA universe with Braemar in its top-10.
Wright also has a position in this innovative hotel company.
He commented: “Snoozebox is a new company that offers temporary hotel rooms that can be transported on articulated lorries. The company has been set up to take advantage of the growing number of events where accommodation is a problem.”
“For example, it accommodated over 600 of the performers at the Queen’s Diamond Jubilee pageant at Windsor Castle. We are expecting the company’s unique portable hotel rooms to be in demand over the summer, not least during the Olympic period.”
, manager of the Fidelity UK Growth
fund, says this niche advertising company will be in a strong position to benefit this summer.
“Chime has a number of positions in specialist marketing areas, including the fast-growing area of sports marketing,” he explained. “Chime owns the company responsible for the branding of the 2012 Olympics.
“It has recently acquired a Brazilian marketing agency, which should leave it well placed to bid for business connected to the next Wold Cup and the 2016 Olympics, both of which will take place in Rio di Janeiro. Its exposure to these attractive markets could make it a target for larger companies such WPP, which already has a large shareholding in the company.”
, who heads up the Fidelity UK Aggressive
fund, says that high-end retailers should benefit from the extra tourists in the capital.
“London is expected to receive millions of extra visitors this summer due to the Olympics,” he said. “This should provide a boost for some of the capital’s prime shopping destinations, including luxury goods retailer Burberry’s flagship store on Bond Street. The company has been preparing its store for an influx of wealthy visitors by aggressively increasing floor space across London, including new stores in Covent Garden and Regent Street.”
According to FE data, Burberry is held in the top-10 of eight funds in the IMA unit trust and OEIC universe, including Richard Buxton
’s Schroder UK Alpha Plus
, who runs the Fidelity MoneyBuilder Growth
fund, is backing bookmaker William Hill.
“Whilst the Olympic Games will attract a small number of punters, it is this summer’s Euro 2012 tournament in Poland and the Ukraine that will see the most betting activity. William Hill, as the UK’s largest bookmaker, will be poised to capitalise on these with a highly cash generative network of the over the counter shops, telephone service, and fast growing online service.”
Andy Brough’s Schroder UK Mid 250
fund is one of 12 that hold the bookies in their top-10.