📈 2 stocks I'm watching

A lot can happen in a week.

In this instance, Israel has now attacked Iran and Iran has retaliated.

Nearly two years ago, Benjamin Netanyahu promised a war that would “change the Middle East.”

Well, he’s certainly done that.

Trump has called for Tehran’s “unconditional surrender” and that his patience was “wearing thin”.

And referring to Ayatollah Ali Khamenei, he said: “We are not going to take him out (kill!), at least not for now.”

So the US is still open to joining the war, it seems.

This is backed by the fact the US is moving key assets to the region such as air-to-air refuelling aircraft and the USS Nimitz strike group moving to the Middle East from the South China Sea.

Starmer seems to think that there is nothing to suggest that Trump has said he’s about to get involved in the conflict.

Quite how he has come to that conclusion, I have no idea.

But then I am not a politician.

Israel can certainly inflict more pain on Iran, but the Islamic Republic has shown in the past it can fight a drawn-out war as it did with Iraq in the 1980s.

And if destroying Iran’s nuclear capabilities is the goal, then Israel will be wanting to get its hands on the US’s Massive Ordnance Penetrator (MOP) which was developed to destroy bunkers other weapons can’t reach.

Without it, we may see a war of attrition.

Then it becomes a question of who has the most missiles?

Iran has said it is waiting for the deadliest missiles to emerge - potentially when Israel’s stock of interceptors has been depleted.

Neither side has unlimited ammo here.

And yet despite the fact that we might be about to see the US get involved to topple a regime, the S&P is currently off all-time highs by 2.18%.

To me, this is surprising.

But maybe markets know something we don’t!

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Windar Photonics (WHPO)

I wrote about this company last year and last week it put out a profit warning.

In fairness, this is simply revenue recognition and doesn’t affect the business at all, it seems.

What you have to be careful of though is companies saying this, yet the forecasts for the next year are not revised upwards.

Which basically means that the revenue goes poof and disappears!

This company has been an absolute dog for years. But is it about to have its day?

After 10 years, shareholders in at the IPO are still down over 50%.

This, unfortunately, is not uncommon for small cap stocks and in my opinion shares are for regular buying and selling.

Windar Photonics specialises in innovative Light Detection and Ranging (LiDAR) systems for wind turbines.

Its products are designed to enhance the efficiency and performance of wind energy generation by providing precise wind measurements.

Windar’s flagship products include:

• WindEYE™ Sensor: A nacelle-mounted LiDAR system that scans laser beams in front of the turbine to detect wind conditions, enabling real-time adjustments to optimise turbine alignment and performance.

• WindVISION™ Sensor: An advanced system providing detailed wind data to further enhance turbine efficiency and reduce mechanical stress.

By integrating these sensors, wind farm operators can improve energy output and reduce wear and tear on turbines, leading to lower maintenance costs and extended operational life.

This sounds reasonably useful and so it’s unsurprising to hear that users of Windar Photonics’ products include wind farm operators and renewable energy developers.

The company raised £5.5 million in December at 40p.

This was oversubscribed.

It’s been six months for this to wash through and hopefully any flippers are now out.

I’m watching the recent highs to see if the stock tightens up before making a further move.

The cash flow statement suggests that the company has enough cash to get to profitability.

This next stock has been in a range for several years and now within 10% of a potential breakout.

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