In today’s top stories, Tencent Music may be about to launch its Hong Kong IPO, Porsche’s upcoming listing has attracted interest from a Norwegian sovereign wealth fund, and Apple could bring in $5bn in ad revenue this year. In other headlines, Goldman Sachs offered its stable stock picks and Barron’s screened for cheap stocks outperforming the S&P 500.
Tencent Music eyes Hong Kong listing
New York-listed Tencent Music [TME] is reportedly planning to list in Hong Kong as early as next week, Bloomberg has learned. It’s the latest of a spate of Chinese firms seeking second listings in Asia’s financial capital to mitigate the risks of ADR shares potentially being delisted. Bloomberg has also reported that the HKEX plans to lower revenue requirements to make it easier for deep-tech firms to go public there.
Goldman’s stable stock picks
While investors remain divided on whether a recession lies ahead, Goldman Sachs has identified stable stocks that can provide shelter from volatility, according to a client note seen by CNBC. Analysts at the bank looked for companies with a track record of growing cash flows and had the lowest variability in EBITDA over the past decade. Alphabet [GOOGL], Home Depot [HD] and Colgate-Palmolive [CL] were the top three.
Apple’s App Store ad push
App developers can get ready to promote their offerings in Apple’s [AAPL] App Store following confirmation to developers that previously promised new placements will roll out this holiday season. BofA analyst Wamsi Mohan has estimated that the company could net $5bn in advertising revenue through search ads this year, according to CNBC. While its ad business continues to grow, its privacy changes have hurt Meta’s [META] ad revenue.
Cheap stocks outperforming the S&P 500
The five largest S&P 500 companies haemorrhaged a combined $477bn in Tuesday’s bloodbath. Barron’s has screened equities for cheap stocks whose price-to-earnings ratios were in the bottom 20% of the index but also in the top 20% performers, naming Ford [F] and MetLife [MET] as its picks. “Cheap stocks that have been outperforming the market, however, have a better chance of being ones that can reach their earnings potential,” noted Barron’s Jacob Sonenshine.
Porsche IPO attracts Norwegian fund
Porsche is confident that there’s plenty of capital in the markets for its Frankfurt float to be a success. It seems institutions would agree as its IPO has drawn a commitment from Norwegian sovereign wealth fund Norges Bank Investment Management, reported Bloomberg. T Rowe Price [TROW] has also shown interest in subscribing. Porsche’s parent company Volkswagen [VOW.DE] has attracted criticism for launching its IPO in gloomy market conditions.
Vistry buys rival homebuilder Countryside
Struggling homebuilder Countryside Partnerships [CSP.L] is being acquired by rival Vistry [VTY.L] for £1.25bn. With the Vistry share price down 32.1% year-to-date amid rising inflation and higher mortgage rates, investors will be hoping that the combined entity will help lift the company. Vestry CEO, Greg Fitzgerald, believes the merger will provide “much needed affordable housing across England and material benefits for shareholders''.
AVEVA and Flutter are FTSE 100’s August winners
While the FTSE 100 recorded a monthly decline of around 2% for August, two stocks were clear winners: AVEVA Group [AVV.L] and Flutter Entertainment [FLTR.L]. Cambridge-based software firm AVEVA was boosted by news that Schneider Electric [SU.PA], which owns 60%, is considering a full buyout. While Flutter’s UK business has been weak, its US subsidiary FanDuel has performed strongly.
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