skip to Main Content
enquiries@thearmchairtrader.com

Sign up for our Free Daily Digest newsletter: Actionable insight every morning, designed for the self-directed investor. Find out more

Like many, the Armchair Trader team were off on our holidays in August. In our absence, it seems the financial markets took a bit of a breather. 

Having experienced such an extraordinary year with COVID-19 affecting the way we live our lives and the effects it has had on the global economy and the rollercoaster ride we’ve experienced within the financial markets, August has afforded investors some time to take stock of events.

Last month wasn’t without its moments. Trump continued to threaten a trade war escalation with China and the markets are still very sensitive to any developments there. The Dollar has been weakening against the major currencies following the Federal Reserve’s position shift on interest rates, moving from a 2% target to a 2% average, providing plenty of ammunition for monetary stimulus as and where the US economy needs it.

COVID-19 headlines are still understandably dictating whether the bulls or the bears are in charge. News of outbreaks and vaccine developments proving a constant theme. The swings are narrowing but with Europe moving towards the winter months and children heading back to school, we are entering a critical period.

The Armchair Trader’s August picks

One of our favourite stocks at the beginning of the year, ITM Power [LON:ITM] has come off a little in August, and investors are going to be wondering whether they are going to see further upside from this alternative energy play. However, the business is well positioned to benefit from further innovation in the sector with the European Union for example recently unveiled an energy systems integration strategy to help develop renewable hydrogen, using mainly wind power and solar energy. We added ITM Power to our picks on 20th August.

We called Hammerson [LON:HMSO] as our Short of the Week on 24th August. It’s a business that has massive exposure to retail shopping, an industry struggling to deal with the change of consumer habits and the effects of the cornavirus.  Having continued to fall in August, the stock has rallied in September but the team here at The Armchair Trader feel this could be a temporary respite as the industry outlook for many retailers appears to be very bleak indeed.

We added near patient molecular diagnostics company, Genedrive [LON:GDR], to our picks on 25th August Some of the initial enthusiasm has gone out of the shares recently, but the core value behind Genedrive’s technology is still there. We are still a long way off mass vaccination and the ability to carry out rapid on-site testing is going to be a vital development – validation testing is happening in the US, so we anticipate first ‘live’ use of the enabled Biomek device for COVID in the US in September.


Here’s how our picks are performing

Company/InstrumentStart priceCurrent price*Percentage change
Nano One1.13CAD3.19CAD+182.3%
Remedy Entertainment€14€31+124.6%
Netflix357.12USD529.6USD+48.3%
Harvia€8.86€15.5+74.9%
AstraZeneca£76.15£83.4+9.52%
Kodiak Copper0.24CAD0.56CAD+133.3%
Thunderbird Entertainment1.05CAD1.99CAD+89.5%
Mineral Commodities0.23AUD0.24AUD+4.3%
Citycon6.336.72+6.2%
Verkakkaupa.com5.564.88-12.2%
Royal Mail (Short)181.25165.55+1.0%
Yellow Cake211.50220.5+4.2%
Copper2.903.05+5.1%
Gold19311996.4+3.4%
ITM Power260277+6.5%
Hammerson (Short)49.2448.43+1.65%
Genedrive9695-1.0%

*Prices as of close of play on 30th August 2020

Removed from The Armchair Trader’s current watchlist for next month: Verkakkaupa.com Reason: For our larger company picks, we include a 10% stop loss designed to minimise losses. We can’t win them all.
Royal Mail, Hammerson Reason: short term trade, 10% stop loss in place

Related

Data sourced from SharePad. The UK’s no.1 investment data & analysis software for Private Investors as voted for by FT/Investors Chronicle readers.  Discover the advantage at www.sharescope.co.uk/sharepad.

For further daily updates on the stocks we like, both UK and international, make sure you sign up to our newsletter service.

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Michael Morton

Michael Morton

Michael has worked within the Financial Industry for more than 20 years. Starting out as a financial analyst, he has extensive experience working with fund management groups and brokerages.

With an interest in Stocks and Shares, Funds, ETFs and Commodities, his investment focus is medium to long term gains, with the objective of financial security on retirement, and building wealth for his young children for their adult life. His broker of choice is Hargreaves Lansdown.

Comments

Back To Top