Tim Harrison, head of wealth at Linear Investments discusses the stories blowing around the market on a blustery and breezy September morning in London as storm Eileen hits the UK – hardly a patch though on Hurricane names Irma and Harvey.
The commentator assesses the new releases by Apple Inc (NASDAQ:AAPL) last night, pointing out that they were what everyone knew, with the top of the range iPhone X priced at an eye-watering US$1,000.
He notes that many years ago an Apple event used to be “really quite exciting” but now it is more the case of being “run of the mill”, especially with the new phone’s details having been leaked earlier this week.
Harrison points out that Apple are a trendsetter, but that at US$160 a share they have a long way to go to continue that momentum, although he thinks Apple core followers will still pay the price point for the iPhone X.
He also highlights cruise operator Carnival PLC (LON:CCL) as the FTSE one to watch, with its shares having come off recent highs given the storm season in the Caribbean currently, but Harrison thinks the stock could be a nice one to own in the medium to long term, also given the current low relative oil price.
Meanwhile the commentator’s AIM stock to watch is chip firm IGQ PLC (LON:IQE), which has had a meteoric rise, although the shares are softer this morning as everyone was speculating that the group would have more involvement in the new Apple products.
However, Harrison thinks the company is “pretty cool” and very niche in where it its getting involved, and he sees the semiconductor industry as the sector to watch in the next 12-18 months as technology gets more complex.
There is also the takeover play possibility for IQE, but he feels the fundamentals behind the company are also still looking pretty strong.
Turning to the pound, Harrison noted that the UK currency is still going great guns against the dollar at the moment, buoyed by yesterday’s inflation data, and he remains a “British bull-dog” for sterling, which he sees as continuing to strengthen.