The week ahead: Proactis, consumer confidence and Christmas

Traders already have one eye on the turkey and will likely spend next week finishing the Christmas shopping. The Federal Reserve's interest rate decision really was the last big news day of the year, and trading volumes will likely tail off as Friday's half-day trading session and the four-day break approaches.

Big question now is whether the FTSE 100 can make a new record high above 7,129 soon, and if the Dow Jones can finally top 20,000. Both outcomes are very real possibilities.

Monday 19 December

Monday's AGM of Proactis may feature some early Bucks Fizz and crackers, after the AIM-listed software firm released solid full-year results in October and then a promising acquisition a couple of weeks later.

Full-year revenue was up 13% (7% underlying organic) to £19.4 million and earnings before interest, tax, depreciation and amortisation (EBITDA) grew 10% to £5.3 million. Net debt of £0.5 million was well below expectations of £1.7 million.

On those numbers N+1 Singer's Adam Lawson increased his target price from 153p to 179p, implying 9% upside from here.

"We believe the current valuation - FY 2017 enterprise value/EBITDA of 8.3x - considerably undervalues the growth potential of both the existing buy-side offering and the nascent supplier commerce offering," said Lawson.

But finnCap analyst Andrew Darley went one better in a 10 November note following Proactis's acquisition of Aberdeen-based Millstream Associates, bumping up his already plump price target by 15p, from 200p to 235p. That's 44% higher than the current price.

Despite those rosy forecasts, shareholders at the AGM in Wetherby, Yorkshire will be looking for specifics of just how much the addition of Millstream will boost earnings - and thus line their pockets.

Trading Statement

Collagen Solutions

AGM/EGM

World Careers Network, Akers Biosciences

Tuesday 20 December

Trading Statement

AGM/EGM

Gfinity, Artilium

Wednesday 21 December

Consumer think tank GfK will release its UK consumer confidence index for December on Wednesday, following a marked slump across all five of its key measures in last month's figures.

GfK's Joe Staton explained that in November's index, while responses on personal financial situations had just about stayed positive, the other four metrics were all gloomy.

"The big theme is the reduced confidence in the UK economy looking back and ahead," he said at the time.

"We are viewing our economy over the past 12 months with increasing despondency. The decreasing score on the economy for the next 12 months also shows we are resolutely gloomy about the outlook despite strong GDP numbers."

The overall index score for November was -8, down five points from the previous month and the lowest score since the 2016 low of -12 in July - the first monthly update of the index after the Brexit vote.

Most concerning in the run-up to Christmas was November's sharp nine-point drop in the metric that tracks people's willingness to make major purchases.

"This will be an acute concern for retailers as they gear-up for the key Christmas selling period," said Staton. "Many are saying that fears about the British economy have been overstated, but time will tell if the pessimism shown in the Index is misplaced or not."

December's index may offer more clues as to whether that pessimism still dominates Christmas shopping plans in Brexit Britain.

Trading Statement

AGM/EGM

VinaCapital Vietnam Opportunities Fund, Syqic

Thursday 22 December

Trading Statement

Rambler Metals and Mining

AGM/EGM

Reconstruction Capital 2, Uvenco UK

Friday 23 December

Trading Statement

AGM/EGM

Mosman Oil And Gas, Frontier IP

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.