…and some to hold, avoid or sell

AA

Investors Chronicle

The roadside assistance and insurance provider has made “tentative progress” since last year’s 13% contraction. But growth isn’t expected until 2021. Despite “encouraging” cash flow, the net debt remains worrying. Sell. 58.8p.

Burford Capital

Shares

Shares in the litigation finance expert tanked from around £14 to just over 600p after “mud-slinging” by short-seller Muddy Waters. There’s talk of “market manipulation” and an FCA enquiry. Watch from the sidelines. Hold. 824.5p

G4S

Investors Chronicle

The global security company is de-merging its cash solutions business to “inject momentum” – it’s unclear when. £398m of lease liabilities, growing debt and the pension deficit are “plenty to be nervous about”. Sell. 171.6p.

Investors Chronicle

The photonics specialist is suffering from US-Chinese tensions and dampened demand for industrial lasers. Internal issues include falling financial metrics and an underperforming recent acquisition. Sell. £11.45.

ITV

The Times

The broadcaster has allied with the BBC to launch BritBox

– “a British rival to Netflix and Amazon Prime” – later this year. But Apple and Disney are also entering the streaming market and advertising is “sluggish”. Avoid. 104.6p.

The Times

The luxury watch retailer has growth potential, but Brexit uncertainty and a possible US recession may give even the wealthiest shoppers “pause”. With no upcoming dividends, more proof is needed it can deliver. Hold. 285p.