Three to sell

Genel Energy

Investors’ Chronicle

This oil and gas firm has been struggling to get prompt payment for its production from the Kurdistan Regional Government (KRG): it’s owed $111m. A “disagreement” with the KRG has also seen it abandon two development licences. Free cash flow could rise from $86m in 2021 to $250m this year, and the dividend has climbed by a fifth to $0.18 per share, but its continued issues with the KRG make it one to sell. 154p.

Inspecs

The Daily Telegraph High-priced growth stocks don’t usually do well in the face of rising interest rates. That suggests it’s time to book profits in eyewear specialist Inspecs. There isn’t anything going wrong: sales are up, brand range and distribution reach are increasing due to deals abroad, and opticians will be able to offer a full range of services again now that Covid-19 restrictions are over. But the stock has gained nearly 72% since July 2020, it has “yet to break into the black on a statutory basis”, and the current valuation prices in a lot of growth. Take profits. 335p.

TP ICAP

The Times

Shares of interdealer broker TP ICAP have fallen by over two thirds since it was formed by the merger of Tullett Prebon and ICAP in 2016. It is struggling to produce sustainable earnings due to pressure from Brexit disruption, currency fluctuations and muted trading in the fixedincome and swaps markets. The costs of its five-year plan to “diversify its client base” and move towards digital trading have also hurt profitability. A forward price/earnings ratio of five looks cheap, but unpredictable markets may mean its earnings could easily disappoint later in the year. Avoid. 119.2p.