📈 2 stocks I'm watching

Bonds moved and Starmer steadied the ship.

For now.

UK government bonds and the Pound fell on Wednesday after Starmer didn’t back a clearly upset Reeves in the House of Commons.

After not initially confirmed that the chancellor would stay in her position, the 10-year yield had it’s biggest one-day rise since April’s sell-off.

However, on the evening, Starmer told the BBC that Rachel had done an excellent job as chancellor and that “she will be chancellor for a very long time to come”.

This took some pressure off the bonds but shows that the market is clearly worried about change.

The FT is also reporting that the Cash ISA limits may be reduced.

But we already know that the ISA allowance isn’t changing, so reducing the Cash ISA limit doesn’t make much of a difference.

That’s because some Stocks & Shares ISAs are paying interest on any cash that’s not invested and sitting within the ISA.

So basically it doubles up as a Cash ISA.

Our sponsor XTB offers a Stocks & Shares ISA that is free to deal ETFs and pays out 4.5% interest on uninvested cash, which is better than the Bank of England. Open a free account here.

Which means that the intention of pushing more people to Stocks & Shares ISAs will work, but not the ultimate goal of getting them to invest.

Many people will simply use a Stocks & Shares ISA as a Cash ISA.

Rachel Reeves: 0.
Unintended Consequences: 1!

In other news, Tesla deliveries fell for a second straight quarter.

But this was actually an improvement on the last quarter, as these results were better than feared.

Weaker demand and Musk’s meddling in politics has affected sales.

But the big thorn in the side now is BYD’s assault on the UK and Europe.

The Dolphin Surf launched by BYD at £18,600 is going for the jugular.

I see a lot of uncertainty and risk with Tesla, as it no longer holds its huge advantage in EVs.

Here’s the chart.

Ultimately, Tesla is high volatility and high risk. Not for widows and orphans.

As always, everything I write and say is my own personal opinion only. It is NOT financial advice.

I don’t accept money from listed companies to talk about them unlike other market commentators, so whilst this is independent nothing is a stock recommendation to buy or sell.

These are ideas only, and whilst I try to be balanced, sometimes I will be wrong.

Therefore, it’s important that you do your own research!

Synectics (SNX)

Synectics is a UK-based company specializing in advanced security and surveillance systems.

It designs, integrates, and supports security solutions tailored for industries where surveillance is critical, including gaming, oil and gas, public space, transportation, and critical infrastructure.

It does this through various products and solutions.

Firstly it has its Synergy Software Platform.

This is a proprietary security and surveillance software platform that integrates various security systems into a unified interface, enhancing situational awareness and response capabilities.

It also has COEX Camera Stations. These are radiometric-enabled, explosion-proof cameras designed for hazardous environments, such as oil and gas facilities, providing reliable monitoring in challenging conditions.

Finally, it has its integrated surveillance systems. These are custom-designed solutions that combine hardware and software to meet the specific security needs of clients across various sectors.

Once Synectics is embedded into a client, the revenues are sticky. This is because these contracts are not won on cost and the best-in-class solutions are required.

Here’s the chart:

We can see a clear stage one before a breakout at the end of 2023.

Here’s a close up of the last year.

We can see that the stock sold off in April which was around the time of the Trump tariffs drama.

And since then, it’s been rangebound and holding up above the moving averages.

Trading was in line for the last update and so I’m watching to see if the stock tightens up before making another move.

At £53 million market cap, there is no reason why the stock can’t keep powering higher if the company delivers solid results.

Here’s a few more stocks that I’m watching.

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