Experian, Tullow, MGC Pharma & CAML: 4 FTSE investment ideas for the day

Highlights

  • The UK stock markets had turned a bit sombre with the inflation in the UK rising to 3.2% in August.
  • Many economists and market experts predict inflation could reach a 5% level by the end of this year.
  • Experian Plc, Tullow Oil Plc (UK), MGC Pharmaceuticals Ltd, Central Asia Metals Plc are some of the listed stocks in focus today.

The UK stock markets had turned a bit sombre with the inflation data announcement. Inflation in the UK rose to 3.2% in August, the highest level in almost a decade and well above the Bank of England’s initial target of 2%.

The Bank of England has stated that the surge in numbers is temporary, and inflation could reach its peak levels at 4% by the end of this year. However, many economists and market experts predict inflation could reach 5% level pushing the Bank of England to take decision on rate hike and tapering of bond buying program.

Bank of England’s next policy meeting is on 23 September. Investors anticipate that the members of the bank committee could agree on the tapering of bond buying program, which was started after the pandemic.

Let us explore 4 FTSE listed stocks that are in focus today:

Experian Plc (LON: EXPN)

The company engages in the collection of data and information of individuals to understand their creditworthiness while lending and minimise loan default and fraud cases.

The company has operations in over 45 countries with market dominance. It provides data analytics and decision-making services to its clients. The company operates in the niche segment with very few peer companies operational in the same segment in which the company works and gives the company near-monopoly status and large market share leading to higher revenue and profitability.

Experian Plc currently trades at GBX 3,315, up by 0.49% on 16 September 2021 at 9:20 am GMT+1 with a market cap of £30,427.79 million. 

Tullow Oil Plc (UK) (LON: TLW)

FTSE 250 listed company focuses on exploration and production of oil and gas resource. It carries out the production activities in Africa and South America.

The company returned to profit making in the first half of 2021. It reported a gross profit of USD 321 million, while profit after tax was at USD 93 million, against the loss of USD 1,327 million reported during the same period last year. The stock might be a good buy at current levels as the company anticipates further growth in production and reserve in coming quarters.

Tullow Oil Plc currently trades at GBX 47.92, up by 1.03% on 16 September 2021 at 9:20 am GMT+1 with a market cap of £678.23 million. 

MGC Pharmaceuticals Ltd (LON: MXC)

The company operates in the medicinal cannabis industry with a focus on the development and supply of phytocannabinoid derived medicines to patients for the treatment of epilepsy and dementia.

MGC Pharmaceuticals Ltd’s developed the ArtemiC medicine to support the immune system that effectively improves the recovery of patients with mild Covid-19 has received regulatory approval for sales in Germany. The company also anticipates the sales approval in other European countries to be received soon.

MGC Pharmaceuticals Ltd currently trades at GBX 3.43, up by 0.74% on 16 September 2021 at 9:20 am GMT+1 with a market cap of £81.08 million. 

Related Read: 3 medicinal cannabis penny stocks to buy in 2021

Central Asia Metals Plc (LON: CAML)

The company engages in mining activities to explore industrial base metals like copper, zinc, lead and silver. The company’s key mining site is in Kazakhstan and north-eastern Macedonia.

The company reported a significant recovery in gross revenue at USD 106.3 million (H1 2020: USD 75.4 million), while its EBITDA stands at USD 64.4 million (H1 2020: USD 42.5 million) during the six months ended 30 June 2021. Higher revenue was attributed to the favourable market conditions and higher prices and increasing demand for the base metals. Also, the company has substantial reduced its net debt. At present, the net debt stands at USD 10.1 million against the net debt of USD36.2 million as of 31 December 2020.

Central Asia Metals Plc currently trades at GBX 243.50, down by 1.62% on 16 September 2021 at 9:20 am GMT+1 with a market cap of £435.67 million. 

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