Ostensibly, the shopping bonanza that is Black Friday involves retailers slashing prices to create “bargains”.
We all know that many retailers game the system, raising prices beforehand in order to be able to “reduce” them on Black Friday.
No such shenanigans exist on the stock market (ahem) and it can be safely assumed that a share price that is trading well below its level of a year ago is experiencing a genuine price cut.
So, here is Proactive’s list of FTSE 350 stocks that are a lot cheaper than they were the last time Black Friday rolled around but are they bargains?
One thing people are unlikely to be acquiring on Black Friday is a falling knife so … buyer beware.
AO World PLC – down 69%.
Is it a bargain? Profit warnings often come in threes; AO World has had two so far.
Trainline PLC (LSE:TRN) – down 39%
Is it a bargain? Prospects of more travel restrictions if the latest strain of Covid-19 migrates to the UK and plans for UK Rail to offer its own online ticket-buying service means this is one for the brave.
TUI AG (LSE:TUI) – down 38%
Is it a bargain? See Trainline for concerns about new strains of Covid-19 but in TUI’s case, it has the “last man standing” argument working in its favour. I don’t know about a bargain but might be worth a long-term punt.
Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF) – down 38%
Is it a bargain? Most of that fall has come very recently as a result of the Peruvian government’s hardline approach to mining projects. Governments come and go but mining companies are forever (or so it seems). The share price has already started to recover.
CMC Markets PLC (LSE:CMCX) – down 37%
Is it a bargain? The company’s founder, Lord Cruddas, would say so but he already has such a large stake he can’t support the share price with top-ups. Instead, he is punting the idea of a possible break-up of the company into two businesses to release value. The firm thrives in times of market volatility and notwithstanding the usual pre-Christmas lull, it looks like volatile times may be around the corner.
Wood Group (John) PLC – down 32%
Is it a bargain? The oil price has fallen out of bed with a bump today so it is perhaps not the best time to assess an oilfield services’ provider’s prospects but it is making money and the worst may be behind it.
TP ICAP (LSE:TCAP) PLC – down 30%
Is it a bargain? The broking community thinks so, with the consensus target price almost double the current level. Then again, much the same was said about AO World before its recent profit warning.
easyJet PLC – down 30%
Is it a bargain? See TUI AG (LSE:TUI) but minus the “last man standing” positive. It looks likely to survive however unless it gets snapped up by a rival.
Ashmore Group (LSE:ASHM) PLC – down 28%
Is it a bargain? Looking after other people’s money will always be lucrative but Ashmore’ focus on emerging markets is currently counting against it.
Petropavlovsk PLC (LSE:POG) – down 25%
Is it a bargain? Has gold time’s come? A bit of fear in equity and cryptocurrency markets would not go amiss for holders of this stock.