Stock Selection Report: London Stock Exchange Companies Analysis

This report provides an analysis of stock selections from the FTSE 100 and companies listed on the London Stock Exchange. The analysis focuses on the stock price movements between September 30, 2019, and November 4, 2019, to identify stocks with upward and downward trends. The report examines ten stocks, including Fuller, Smith and Turner, Derwent London, British American Tobacco, ABCAM Limited, Dixons Car-phone, DRAX Group, French Connection, Barclays, and Greggs. The report further analyzes the performance of select stocks (British American Tobacco, Barclays, French Connection, and Greggs Bakery) until January 20, 2020. The report concludes with a discussion of the selection criteria and the performance of the selected stocks, providing insights into potential investment opportunities. The report uses figures and graphs for clear and transparent analysis.

Running head: STOCK SELECTION
Stock Selection
Name of the Student:
Name of the University:
Author Note:

1STOCK SELECTION
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
Stock price movement from 30th September 2019 to 4th November 2019:............................2
Selection of the Stocks with Upward Trend:.......................................................................10
Selection of the Stocks with Downward Trend:..................................................................11
Stock Performance till 20th January 2020:...........................................................................11
Conclusion:..............................................................................................................................13
Bibliographies:.........................................................................................................................14

2STOCK SELECTION
Introduction:
In the following report various companies of the FTSE 100 index or the companies
listed in the London stock exchange are analysed. The share price of the company are
analysed from the period of 30th September 2019 to 4th November 2019 to analyse the
upwards trend or the downwards trend in the price of the stock. Thus the two stocks which
have an upwards trend in the above period are taken to be further analysed till 3rd February
2020. Also similarly the stocks which have a downward trend in the same period are analysed
and taken to be further analysed till the end of 3rd February 2020.
In this report, 10 stocks of the companies listed in the London stock exchange are
analysed in the first part of the report. In the second part of the report the price data of the
stock selected in the first part is represented and various graphs for the stocks is presented for
a transparent analysis of the stock which are selected.
Discussion:
Stock price movement from 30th September 2019 to 4th November 2019:
The first stock which is being analysed in the report is the stock of Fuller, Smith and
Turner. The company has been present in the brewing business from 1816, and has a chain of
pubs and hotels all over south of England. In the year 2019, the company sold its business to
a company in japan. Thus the stock price of the company from the initiation date has been
showing signs of mean reversion. The Stock has fallen down and then it increased suddenly
and again fell down, showing signs of volatility.

3STOCK SELECTION
1 2 3 4 5 6
940
960
980
1000
1020
1040
1060
1080
FSTA L
Figure 1: Fuller Smith and Turner
Source: By the Author
The second company which is being analysed is the company Derwent London,
which is a property based business in London. The company is involved in the development
and investment of the properties all over London. The shares of the company trade as real
estate investment trust and is being analysed to provide diversification benefits to the
portfolio if being selected. The stock of the company showed an upwards trend consistently
in the analysis period and thus can be considered as an option to be taken in the portfolio.

4STOCK SELECTION
1 2 3 4 5 6
3100
3200
3300
3400
3500
3600
3700
DLN L
Figure 2: Derwent London
Source: By the Author
British American Tobacco is a company which is involved in the production of
tobacco products for the consumers all over the globe. The company has various brands
under its portfolio which consist of in house brands and also brands which are acquired
through merger and acquisition. Thus the stock of the company British American Tobacco
had fallen down in the initial period but has increased after the second week highlighting the
upward trend which is being analysed for selection of a stock.

5STOCK SELECTION
1 2 3 4 5 6
2500
2550
2600
2650
2700
2750
2800
2850
2900
BATS L
Figure 3: British American Tobacco
Source: By the Author
The company ABCAM limited is a manufacturer and provider of protein which helps
other research scholars to carry out research activities. The company was formed in the year
1998, and since then it provides agents and antibodies online to research individuals around
the globe, who have difficulty is acquiring quality products for research. The stock price of
the company has been providing an upwards trend from the analysis period and has been
consistently rising.

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1 2 3 4 5 6
1000
1050
1100
1150
1200
1250
1300
ABC L
Figure 4: ABCAM Limited
Source: By the Author
The company Dixons Car-phone is a relatively new company which was formed in
the year 2014. The company provides telecommunication service and retailing along with
electrical needs supply to consumers in Europe and is a multinational company. The company
operates its operations under various brand names and is a highly profitable company also
providing travel services at airports. The stock price of the company had initially increased
till the fourth week and then it had changed its trend and has been falling after fourth week
till week 6. Thus this stock can be considered to be taken as a company which is representing
downward trend.

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1 2 3 4 5 6
105
110
115
120
125
130
135
140
DC L
Figure 5: Dixon’s Car-phone
Source: By the Author
The DRAX Group is power generation electricity producing company in the United
Kingdom. The company is also involved in the selling of electricity directly to the end
consumers after the purchase of Haven Electricity in 2014. The company was the last to
generate electricity using coal across England and with a series of reformation the company
has transformed two of its facility into burning bio-mass fuel, which is cost efficient and
environment friendly. The long term potential of the stock of this company is a good
investment, however in the short term the stock was trading upwards and fell down
substantially. Thus the stock can be considered as an investment for a downward trading
stock.

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1 2 3 4 5 6
265
270
275
280
285
290
295
300
305
310
DRX L
Figure 6: DRAX Group
Source: By the Author
The stock of the company French Connection is being analysed as it caters to the
consumer discretionary sector and has its operations which are all over the globe. The
company is involved in providing fashion accessories and clothes to consumers around the
globe. The stock of the company has been exhibiting a downward trend and can be taken for
the purpose of the analysis.
1 2 3 4 5 6
32
32.5
33
33.5
34
34.5
35
35.5
36
36.5
37
FCCN L

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Figure 7: French Connection
Source: By the Author
The company Barclays is a major banking and financial service provider around the
globe with the primary listing of the stock in London. The company provides financial
services which are both financial and corporate and is involved in investment banking
industry around the globe. The company is a major banker in various important transaction of
mergers and acquisition around the globe and thus this stock is being considered in the
analysis. The stock of the company Barclays has been increasing from the analysis period
consistently and hence can be taken for an upward investment.
1 2 3 4 5 6
125
130
135
140
145
150
155
160
165
170
175
BARC L
Figure 8: Barclays
Source: By the Author
The stock of the company Greggs is one of the largest bakery chain all over England.
The company had expanded its operations by a series of acquisition in the 1990’s and had
expanded its operation. The company had acquired one of its greatest rival Baker Oven to be
a leader in this industry. This industry lies in the consumer staples sector and thus is being

10STOCK SELECTION
considered for analysis. The stock of the company has been highlighting downwards trend
consistently and hence can be taken as an investment in the portfolio.
1 2 3 4 5 6
1720
1740
1760
1780
1800
1820
1840
1860
1880
GRG L
Figure 9: Greggs Bakery
Source: By the Author
Selection of the Stocks with Upward Trend:
The stock which are being considered for the portfolio of four stocks with upward
trend is the stock of British American Tobacco and Barclays. The stock of Abcam Limited
also highlighted the upward trend but is not being considered since the business opportunities
of the company is very narrow and is highly dependent with the rise in research scholars
around the globe. The stock of British American Tobacco is being considered since the
company is involved in developing of products which provide satisfaction of tobacco while
harm the consumers less.
The stock of Barclays is being considered since it caters the financial service industry
and has been showing an upward trend in the analysis period.

11STOCK SELECTION
Selection of the Stocks with Downward Trend:
The stocks of the company French Connection and Greggs Bakery is being considered
as the stock of downward trend. This is because both the stocks have been consistently falling
down in the analysis period.
Stock Performance till 20th January 2020:
The stock of the company British American Tobacco has been rising upwards
consistently from the analysis period.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
0
500
1000
1500
2000
2500
3000
3500
4000
BATS L
Figure 10: British American Tobacco
Source: By the Author
The stock of the company Barclays have been rising at a stable rate from the start of
the analysis period.

12STOCK SELECTION
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
0
20
40
60
80
100
120
140
160
180
200
BARC L
Figure 11: Barclays
Source: By the Author
The stock of the company French Connection which had an initial downward trend,
changed and was rising upwards. However, the stock of the company has been volatile over
the analysis periods fluctuating to high and lows due to important announcements pertaining
to the company.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
31
32
33
34
35
36
37
38
FCCN L
Figure 12: French Connection

13STOCK SELECTION
Source: By the Author
The stock of the company Greggs Bakery had been in the decreasing trend in the
selection period, however the stock had been rising consistently post the selection period
providing positive returns to the portfolio.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
0
500
1000
1500
2000
2500
3000
GRG L
Figure 13: Greggs Bakery
Source: By the Author
Conclusion:
Thus in this report four stocks belonging to different industry is selected and the
criteria for selection is the trend of the share price over a 6 week period. Thus the stocks
which had an upward trend is the British American Tobacco and the stock of Barclays
Limited. The stock which had been selected with the downward trend is the stock of French
Connection and Greggs Bakery.
Thus a portfolio which consists of the stock of these four companies should be
selected and analysed.

14STOCK SELECTION
Bibliographies:
Yahoo is now part of Verizon Media (2020). Available at:
https://uk.finance.yahoo.com/quote/ABC.L/history?p=ABC.L&.tsrc=fin-srch (Accessed: 22
January 2020).
Yahoo is now part of Verizon Media (2020). Available at:
https://uk.finance.yahoo.com/quote/BATS.L/history?p=BATS.L&.tsrc=fin-srch (Accessed:
22 January 2020).
Yahoo is now part of Verizon Media (2020). Available at:
https://uk.finance.yahoo.com/quote/FCCN.L/history?p=FCCN.L&.tsrc=fin-srch (Accessed:
22 January 2020).
Yahoo is now part of Verizon Media (2020). Available at:
https://uk.finance.yahoo.com/quote/DRX.L/history?p=DRX.L&.tsrc=fin-srch (Accessed: 22
January 2020).
Yahoo is now part of Verizon Media (2020). Available at:
https://uk.finance.yahoo.com/quote/DLN.L?p=DLN.L&.tsrc=fin-srch (Accessed: 22 January
2020).
Yahoo is now part of Verizon Media (2020). Available at:
https://uk.finance.yahoo.com/quote/DC.L?p=DC.L&.tsrc=fin-srch (Accessed: 22 January
2020).
Yahoo is now part of Verizon Media (2020). Available at:
https://uk.finance.yahoo.com/quote/BARC.L?p=BARC.L&.tsrc=fin-srch (Accessed: 22
January 2020).

15STOCK SELECTION
Yahoo is now part of Verizon Media (2020). Available at:
https://uk.finance.yahoo.com/quote/GRG.L?p=GRG.L&.tsrc=fin-srch (Accessed: 22 January
2020).