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Cornhill Capital becomes cash member of Nasdaq Copenhagen!

Cornhill Capital becomes cash member of Nasdaq Copenhagen!

Cornhill Capital Limited based in London has been admitted as a cash member of Nasdaq Copenhagen from December 14, 2016. From this date, Cornhill Capital is admitted to trading in INET in Copenhagen First North securities.

Member:            Cornhill Capital Limited
INET ID:             CCL
Admitted:           December 14, 2016

For more information, please contact the Nasdaq Nordic Team on 020 3700 2534 or email trading@cornhillcapital.com.

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What are the rules for investing? Here are 10 for you!

What are the rules for investing? Here are 10 for you!

What are the rules for investing? Here are 10 for you!

In this post called What Are the Rules for Investing, we have put together a list that will hopefully give you some ideas when preparing an assault on the financial markets. How to decide investment strategy can be a daunting question requiring careful thought and a set of rules can provide some useful safety buffers. You are most probably bombarded with stock tips and emails with the next Microsoft or BP making it difficult when choosing your portfolio candidates. Before you invest your funds you should develop your own list of rules for investing when choosing stocks, here are some rules that may just help:

  1. Learn about what makes stocks move – There is a myriad of reasons of why a stock will move. From individual company announcements, sector changes through to who gets elected in another country, these have a massive effect on all the stocks that you own. As stocks are all different businesses some will move with the announcement and some will move against. Try to learn about financial statements as when a company announces these you will find golden nuggets of information in there.chart-1905225_640
  2. Work out your financial objectives – Why do you invest? If you are 65 and need to conserve your capital, then you should look at extremely low risk positions which will not cause any concerns. On the opposite side if you are 28 and are looking to the markets for high rewards, you must have to take higher risks.
  3. Pick a strategy – As mentioned, how to decide investment strategy is a key consideration! Are you an investor or a trader as they are different. If you like to invest in stocks then you will view it from a fundamental position and you should learn about its EPS, Dividend Yield & Debt. If you are investing and MUST have a dividend make sure the business has good dividend cover. If you want to invest in the short-term then you should learn about technical trading based on indicators that you overlay onto a chart. But always remember that fundamental news will always outperform any technical strategy that you run ie news that BP have just had a severe oil spill and the share price reacts with extreme pull back then the technical indicators will not mean anything.
  4. Do your research – Pick stocks with a business model that you understand. What are its prospects, how do its peers perform in the sector, how is the brand seen across the news and social media, how well is the brand reviewed online? Along with fundamental and technical research, this should also form part of your research. Also, remember that past performance of that company does not necessarily mean it will continue in the same way.
  5. Follow the trends – You have heard the saying don’t try to catch a falling knife. This also equates to stocks as you can think that a stock is cheap when it is in free fall and you think it has reached the turning point. On many occasions, it was not and kept on falling after your order went through.trend
  6. Think like you own it – the best investors like Warren Buffet think like they own the whole business.
  7. Manage your risk – With some products you can leverage your investment by trading CFDs or options. This means that your profits are multiplied, however this also means that your losses are also multiplied so beware and ensure you research this fully.
  8. Spread your investments – There once was a farmer who learned a valuable lesson that he passed on. If he held all his fresh eggs in one basket and the dog knocked the basket over while chasing the cat he would be left with a mess. And no eggs. Same principal applies with stocks. Do not put all your wealth into one stock as things can go wrong. Many employees of Lehman Brothers found this out in 2008 when after investing much of their own wealth into the company pension scheme through the quoted stock were left with a terrible scenario when the whole thing went pop. They were left with no job and their funds up in smoke. If they had spread their risk this could have been avoided.eggs in a basket
  9. Think from a macroeconomic point of view – What could happen globally in the next 3 to 6 months that will have an influence on your investments. Brexit or Trump or the EU – How could this be included in your strategy? How will this affect your rules for investing?
  10. Try to have fun! As if it is too serious, you have too much on the line and too much at risk.

 

So, please understand that these are not the only rules for investing, there are many more than we have listed here but I hope you enjoyed our post and it gives some guidance.

Callum Hill - What are the rules for investing.

Should you require more information or help, please do not hesitate to contact me on 020 3700 2492 or email me callumh@cornhillcapital.com.

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What is a CFD Broker? – A Day in the Life

What is a CFD Broker? – A Day in the Life

So, what is a CFD Broker then?

Many people are interested in the stock market and so always ask what is a CFD broker. A CFD broker can be either the broking firm or the individual broker that works within that firm. This post will focus on the individual.

What is a CFD broker and What is a stockbroker? They are pretty much the same question really as being a CFD broker mirrors what a stock broker does, the difference being CFD brokers use a leveraged product called CFDs. Cornhill Capital offers an execution only CFD service for clients, as an addition to our usual range of institutional level service in share dealing, access to IPO’s, secondary issues and other book builds. On the CFD side this includes up to the minute market information and institutional level research, technical analysis and other tools to assist you in your day to day CFD trading strategy.

We have relationships with a range of providers and resources to suit each individual investor’s requirement, from a basic CFD account to execute your own ideas, through to market maker execution and using your account to complement our other services. We have strong relationships with these providers so as well as dealing we can provide support.
In this way, we believe that our CFD clients have a key edge in the market, with a level of service that is rare to find in this space. It is worth bearing in mind that there is no cost involved in setting up an account, clients are charged only on execution. People can often have a misconception of what a stock broker does. A stock broker has many tasks during the day and there are many things to learn and understand about the markets and the many aspects to the role.

Lewis Jones is a CFD broker on the desk at Cornhill Capital and we show here exactly how a typical day pans out for him. The desk goes to Lewis when clients need to trade products via a CFD.

“I am always conscious that my clients need interaction with the trading floor as market events are time sensitive and we understand that most are not sitting at a price screen all day or watching Bloomberg news 24/7 because they have their own lives to get on with. Typically, I speak to most of my CFD clients at least once every day and there is always some change or event to talk about. The lower costs and leveraged nature of a CFD account lends itself to shorter term trading, so a higher level of contact with clients is important, in particular, during times of volatility. The experience of the Cornhill team provides clients with a broad level of understanding on what makes the markets move however our clients are achieving exposure to them. Coming from a trading background this access is what I would find useful to plug into if I was trading actively myself”.

 We have put together a brief synopsis of a typical day working as an equities and CFD broker at Cornhill so hopefully this will answer the question "What is a CFD Broker"

07:15 - Start reading through the latest market info and potential movement regarding overnight events.
07:45 - All clients are sent details on news or trading updates in relation to all individual stocks held through Cornhill. This is an important part of what we do as markets can obviously move quickly.
07:50 - A client emails in, looking to sell a stock before the open, we put this order into the opening auction with a market maker. Most customers aren’t aware that this can be done through a CFD as well as a traditional stockbroking firm, but it is possible in particular for orders in size, we can see how market makers are positioned in a stock and leave an order with a specific market maker if needed.
08.00 - Team meeting to discuss overnight developments including the Dow and Asian markets and how this could affect the London open. We also discussed the significant movers in the equity markets for yesterday as they affected some of our clients open positions.
09.30 - A client calls in as the trading platform that our partners provide has frozen and he has positions in play – A quick call and the Institutional support team at our platform partner swings into action and within a minute, the problem is solved.
10:00 - We receive a call from a client looking for research on the mining sector that has rallied this morning. We send out yesterday’s research note from Credit Suisse on this. We always help our clients with market info and we have access to tier 1 institutional reports.
10.20 - Two of my team members are in a meeting with a new client so I cover the desk, and the phones are ringing constantly as is always the way when I am covering 3 phones! This is because the banking sector is in meltdown as Deutsche Bank shares have fallen again, and now down 90% from its peak in 2008 and 28% in 3 weeks, European banking stocks affected, being off 5% on average. This means that open positions have to be dealt with. I have two clients calling in and they are short, and happy. One client called in and he is long so not as happy as he normally is, however she is professional and understands that these are the risks when dealing in the markets. She decides to hold on to his position. The 2 clients that are short are no longer in fact they have reversed their previous trades and gone long as they think the sector is now oversold.
10.30 - Our finance team email me as one of my client’s needs to increase funds in his account to continue holding his positions. I call the clients and he was aware this was the case and goes online to update the account. My desk receives all client correspondence that comes direct from their platform provider so we can fill in the gaps and make sure clients are properly informed of any developments with regard to their accounts.
12:00 - A holder of an advisory stocks and shares account and execution only CFD account calls in. He is worried that the market is overvalued and is looking to hedge. One of the team talks him through the instruments that are available to him. These will include ETF positions and the most suitable trackers for what the client is looking for, but also options strategies, index and FX hedging in his CFD account. FX hedging and options in FX have been particularly of interest to clients since the Brexit decision, especially international customers with UK based exposure worried about the subsequent sterling devaluation and the best approach to hedge against this. I was a GBP/USD futures trader in the 2008 crisis and so well positioned to help in this case.
14:00 - A client is locked out of their online CFD account and is unable to trade, he wants to go long on Barclays. On receiving the call to help, we execute his order, update on price movements and unlock the account, this is a rare event and this takes less than one minute for us to do as we have institutional access, so no waiting!.
14.15 - US is nearly open and the news is that the Non-Farm Payrolls have come in above expectations at 13:30, this means that the markets have started to turn and the FTSE 100 is now only down 35. With this news we may even end the day positive. The squawk box calls out the number at 13:30 beforehand this could have an effect on long positions so all clients holding relevant stocks are called/emailed with this info. Customers interested in US shares can call in for pre-market quotes and even trade before the market is officially open, especially on more liquid listings.
15.00 - An advisory client has heard that Cornhill are involved with an IPO that we are intermediary broker to. He indicates that he would be interested in applying and the amount. I am able to add his details to the order book that we are running for the issue.
16:45 - A FTSE 250 quoted business announces an accelerated book build with a major shareholder selling down its stake to the market. Clients who have a share dealing account and CFD account will give us orders to go into the book and can subsequently “give up” the shares to hold as a CFD position on margin once stock is allocation if required.

Then it is post market wind down and after I brave the tube home!

So I hope I have explained what is a CFD broker within a stockbroking firm. If you are interested in speaking about CFDs or equities broking in general please contact me on;

020 3700 2519

lewisj@cornhillcapital.com

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ISDX Monthly Bulletin

ISDX Monthly Bulletin

Company News (Quoted Micro)

Please find below a selection of news, facts and figures courtesy of ISDX.
Chapel Down Group (CDGP
Chapel Down Group (CDGP) says that interim revenues were 26% higher at £4.09m with the fastest growth coming in the Curious Drinks business, although the wine operations increased revenues by 14% and still remain the core activities. Curious Drinks raised £1.74m during the period and that led to a notional gain on disposal of £467,000. The cash outflow from group operations reduced from £713,000 to £441,000.
Shepherd Neame (SHEP)
Brewer Shepherd Neame (SHEP) reported record results for the year to June 2016. Revenues increased by 1% to £139.9m, while underlying pre-tax profit was 11% higher at £10.3m. The growth in revenues and profit came from the managed pubs business. The brewing division reported a lower profit due to the loss of the Kingfisher brewing contract and higher costs of the water treatment plant. The final dividend is 3% higher at 22.05p a share, making a total for the year of 27.5p a share.
Crossword Cybersecurity (CCS)
Crossword Cybersecurity (CCS) is starting to build up its revenues from products created in partnership with a number of UK universities. Distributors are being appointed for the cyber risk product Rizikon which is based on research by City University. In the six months to June 2016, revenues were £164,000 - eight times the previous twelve months. The loss was £403,000. There was £668,000 in the bank at the end of June 2016, which is slightly more than the cash outflow in the first half. Boss Tom Ilube was on the panel for the cyber security seminar held at ICAP's headquarters last Wednesday.
Mechan Controls (MECP)
Mechan Controls (MECP) is holding a general meeting to gain shareholder approval to buy back up to 200,000 shares - equivalent to 10% of the shares in issue. This is part of the board's plan to enable shareholders to realise part of their investment following the termination of bid talk earlier in the year.
Ace Liberty & Stone (ALSP)
Ace Liberty & Stone (ALSP) has acquired 1-5 Upper Market Square in Hanley for £9m. The tenants are Boots and National Westminster Bank. Prior to this deal, property holdings has grown 23% to £29.5m at the end of April 2016, while the NAV is £17.9m. The sale of Hume House for £3.55m - more than double the 2014 purchase price - should be completed by the end of 2016. Economic uncertainty has made it difficult to complete other deals. Management believes it can increase the size of the portfolio to £50m within in the next year without the need for more cash from shareholders.
Kryptonite 1 (KR1)
Kryptonite 1 (KR1) has made its first investment into an initial coin offering (ICO) of SingularDTV. It has invested £5,605 for 462,931 SNGLS tokens that provide a claim to a portion of revenues and IP to show content - there are no voting rights. The tokens can be traded on the Consensys blockchain platform. The idea behind the business is to enable people to directly reward creators of content so that less is taken in fees.

Recent Issuers

Kryptonite1

Kryptonite1 is a blockchain technology company that invests in the fast paced and expanding blockchain ecosystem. Its focus is on cryptographic assets, where web 3.0 companies release cryptographic tokens into the market place almost like a pre-IPO/IPO. The internet is being decentralised and Kryptonite1 is perfectly positioned to take advantage of this transition as this new technology emerges into the mainstream

Dagang Halal

Dagang Halal helps to facilitate and simplify Halal business transactions anywhere and anytime. DagangHalal operates DagangHalal.com, the world's first global e-marketplace to provide Halal verification. DagangHalal.com allows the rapidly growing community of Halal suppliers and consumers to deal with confidence, assuring them that the products and services being purchased are Halal.

Healthperm Resources

Healthperm Resources is a healthcare recruitment business, which has been established to address the significant shortfalls in healthcare professionals in the UK and the UAE. The objective is to become a trusted provider of permanent experienced nurses and other healthcare professionals initially from the Philippines into the UK and the UAE.

Top 5 Traded

SECURITY NAMETICKERTRADESVALUE (GBP)
Rare Earth Minerals plcREM7921,684,243
Shepherd NeameSHEP56645,452
Chapel Down Group plcCDGP76393,904
EPE Special Opportunities plcEO.P39389,169
Capital for Colleagues plcCFCP2169,968

Growth Market Trade Count

New Admissions

COMPANYADMITTED TO TRADINGOPEN PRICESTART MARKET CAPAMOUNT RAISEDISSUE TYPEADVISER
Healthperm Resourcing Ltd23/09/201614012.1mn/aintroductionWH Ireland Limited

Withdrawals

COMPANYWithdrawal date
Carduus Housing Plc22/09/2016

Forthcoming Announcements

COMPANYAnnouncementDate
Mechan Controls plcAnnual General Meeting20/10/2016
Arsenal Holdings plcAnnual General Meeting24/10/2016
Arsenal Holdings plcFinal Results31/10/2016
EPE Special Opportunities plcInterim Results31/10/2016
Ganapati PLCInterim Results31/10/2016
Sandal PLCFinal Results31/10/2016
Field Systems Designs Holdings plcFinal Results31/10/2016
Sainsbury’s Q1 Sales

Sainsbury’s Q1 Sales

Q1 sales figures not as bad as analysts expectations, with clothing sales improving by nearly 5%, boosted by the supermarkets football inspired range ahead of the European Championship due to start this week. Concerns remain over the acquisition of the Home Retail Group and the integration of 2 challenged businesses in very competitive markets. Further ongoing concerns surrounding the penetration of the cheaper European retailers into the UK discounter market.

Market consensus was that the trading statement was solid news so market bought in first thing.
We believe the selloff was due to the market being weak in general. We believe the rally was due to
Bernstein Ltd adding Sainsbury’s to a convicted BUY. Also Jefferies kept as a hold with a price target
Of 280p.

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Market Comment 25/06/16

Market Comment 25/06/16

The FTSE has seen decent strength in recent days off 6100 support zone at 6260 at time of writing, despite Marks & Spencer’s results this morning failing to meet the market’s expectation, trading down 8% this morning. The move higher in the FTSE has coincided with a rise in GBP/USD up to 1.4650 (from a low of 1.3850 this year) implying the move is driven by an unwinding of the “risk of Brexit trade”. Arguably the majority of this risk has come out of the market now as we near the beginning of June.

On the commodities front, gold has suffered on the back of increased odds of a rate hike in the US next month, from $1300 resistance zone recently to $1225 this morning. This theme is backed up by US T-Notes, in which the front month trading at the lows (highest yields) of the month so far. Base metals have largely followed suit with gold, moving large cap UK mining companies to key support areas – a good example is Rio Tinto at £19-20. Meanwhile oil has shown continued strength, the July WTI Crude contract trades close to the significant $50 ceiling at $49.30

AiM Rules for Companies – a Quick Glance.

AiM Rules for Companies – a Quick Glance.

Seeking a listing on the AiM market, then there are rules to follow

If you are seeking to list then there are a number of AiM rules for companies to adhere to so it is ensured an orderly and professional market is continued pre and post listing. The AiM market includes companies operating in over 100 countries 40 different sectors and have a combined value of over £70 billion. There are a number of rules that businesses need to adhere to. A Nominated Adviser (Nomad) will guide you through the listing process and your future life as a quoted company on AiM. Nomads as act a regulator under license from the LSE. Every company that lists on AiM must employ a Nomad, if you would like help with choosing a nomad then we will be able to help introduce you to one.

The rules are updated regularly and as a director of an AIM company you need to be kept up to date with these.

LSE AiM Rules for CompaniesThere are a number of AIM rules for companies.

The London Stock Exchange produce the AIM rules for companies that can be seen here.

The rules include;

  • Retention of a NOMAD.
  • Pre-admission announcement
  • Admission document
  • Application documents
  • Admission to AiM
  • Disclosures
  • Related party transactions
  • Reporting
  • Corporate actions
  • Further issue of securities
  • Directors responsibilities
  • Ongoing requirements
  • Maintenance of orderly markets

 

To speak to our corporate broking team please call James on 020 3700 2526 or Colin on 020 3700 2516. They will help with any questions you have regarding AiM rules for companies. If you are thinking of listing your business on the AiM market then we can help you with all aspects of the listing including the raising of funds.

Cornhill Capital are a regulated stockbroker based in the heart of the city of London. Since 2004 we have helped small businesses raise finance and our team has vast experience of dealing within the AiM market.

 

How to buy IPO stocks to boost your returns

How to buy IPO stocks to boost your returns

How to Buy IPO Stocks

Many clients seek our advice on how to buy IPO stocks to help boost returns. Initial Public Offerings or IPOs also known as “flotation”, “float” or “new company listing”. It will be owned by private shareholders who may wish to sell some of their holding as they have been busy growing the business for a long period of time and want to capitalise on their hard work. Although this is understandable it always needs further careful consideration before deciding on investing.

A company will IPO if they are seeking capital to grow. They may be looking at making acquisitions, or to recruit better staff and incentivise those staff with shares or share options to further charge growth.

This creates an opportunity for investors as the company may want to list 25% of their company on the market for £25 million. This means that the company obtains growth funds and investors get the opportunity to invest into an established business that has a proven team chasing growth.

IPOs that find themselves in demand can give a real kick to your portfolio and provide you with a ground floor investment opportunity.

Successful IPOs have included;

  • Merlin Entertainment floated at 315p and moved to 390p which is a 23% hike in price.
  • In 2013 Royal Mail floated at 330p and jumped to 490p on day 1 and powered on to over 600p within a few short months.

However, sometimes the price upon listing does not go the way that investors anticipated. Facebook were priced at $38 in 2012 and fell back to $18 shortly after so this can backfire if you take a short term view only when buying IPOs. Although if you held your nerve and avoided the initial sell off, they are now priced at over $120 per share.

Due to our city network we are able to show private investors how to buy IPO offerings that they might not get the opportunity to achieve elsewhere and so real benefits are available.

There are numerous considerations when investing in IPOs, chiefly, why is the company listing. If the listing is for positive growth reasons and the owners have not loaded up the balance sheet with excessive debt, then you could include this in your list of options. When a company lists with debt it can inhibit growth and stagnate its share price as we have seen with some high profile stocks including Manchester United and Debenhams.

You may choose to construct an investment strategy that includes buying IPOs and selling at the open, usually at a substantial profit.

How to buy IPO stocks

 

This is known as investing as a stag.

 

 

How to Buy IPO Stocks from a Broker

The process can be a simple one;

  • You review the documents released by the company and decide to invest
  • Complete the application forms
  • Depending on the demand for the IPO your application may be allocated in full. If the issue is oversubscribed then your allocation will be scaled back.
  • Upon listing you either sell or hold the stock for the long term depending on your strategy.

Clients also ask if the stock should be bought after the IPO has listed? This is something that is worth discussing with your investment manager because every IPO is different. In some circumstances this strategy will work but you have to evaluate it as you would any other stock and not get caught up in the hyperbole that can surround a new listing.

I hope we have shown you a small insight on how to buy IPO stocks. As you can see there are many pitfalls that should be avoided but there are also many opportunities in the IPO market. Cornhill are at the forefront of providing our clients with choice. To be included on our IPO information list please complete your details below.

Subscribe to our latest IPO mailing list

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What is a placing

What is a placing

A placing is a means by which listed companies can raise funds. The sale of shares is to a small number of private investors as opposed to the general investing public. Most often the public will not be aware of a placement until it has been completed .

Share placings can be a simpler and less expensive way for a company to raise capital and therefore are popular on the smaller AIM market in particular.