SIPP Investing: 10 Most-Sold Stocks

AIM stocks dominated the list of UK equities that have been most sold by SIPP investors this tax year, according to The Share Centre data

David Brenchley 5 April, 2018 | 12:36PM

trading floor, AIM stocks, selling shares, SIPPs, UK stocks

Small AIM-listed companies were SIPP investors most-sold stocks in the current tax year, data compiled for Morningstar reveals.

The likes of miners Greatland Gold (GGP) and Berkeley Energia (BKY); and oil & gas explorers UK Oil & Gas (UKOG), NU-Oil & Gas (NUOG) and Ascent Resources (AST) are in the top 10 most-sold investments list so far in the period from 6 April 2017.

The data from The Share Centre suggests that even those saving for their retirement are tempted by a fast rising stock.

Chip maker IQE (IQE), which supplies various products used in smartphones, was the most-sold stock. The firm had previously been one of the five most-shorted UK stocks but has seen positions closed out since and has seen the amount of stock out on loan shrink from 8.1%.

From the start of the tax year to mid-November, the stock had almost trebled and since the start of 2016 was almost a ten-bagger, giving investors plenty of opportunity to have turned a profit. Since November, shares have pared back a third from a high of 180p to 116p.

Australia-focused gold miner Greatland Gold and south of England-based oil and gas asset operator UKOG have seen similar fortunes. Both had climbed 745% and 542% respectively from the start of our period to their share price peak. Since, though, they have plunged to not far off where they started the tax year.

Larger-Cap Names

Outside of the more speculative realms, high-street bank Lloyds (LLOY) and drug maker GlaxoSmithKline (GSK) have also been sold off, and sit in third and fifth place respectively.

Interestingly, as we will confirm tomorrow, they are also the two most-bought companies of the tax year so far. And Morningstar equity analysts rate both stocks four stars with fair value estimates of 85p and 1,790p respectively, meaning they are undervalued.

The top 10 is rounded out by two companies at the larger-cap end of AIM. Online retailer boohoo.com (BOO) has served investors well since it floated four years ago.

The owner of millennial clothing websites including PrettyLittleThing and Nasty Gal opened trading in March 2014 50% up on its 50p offer price, eventually climbing to a closing high of 266p in June last year. Since testing that high late September, it’s almost halved to 143p today. Its valuation, at 45 times forward earnings, is still rather punchy, despite having come down in recent months.

It’s been a tough few years for Neil Woodford, but one call he got right has been online estate agent Purplebricks (PURP). It’s had some hiccups along the way, including complaints for misleading advertising, but the share price had risen 425% to mid-2017 to a high of 525p.

It’s still yet to turn a profit and is in growth mode as it attempts to break the US market and shares, like boohoo, have fallen back, to trade just above 300p. Woodford remains confident in the investment case, but broker UBS doesn’t. Full-year revenues are expected to be 5% below consensus and the bank questioned whether its growth in the UK has now stagnated.

Concerns over valuations and future growth potential on both Boohoo and Purplebricks have led investors to look elsewhere too, it seems.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article
Security NamePriceChange (%)Morningstar
Rating
Ascent Resources PLC0.78 GBX0.00-
Berkeley Energia Ltd40.25 GBX0.00-
boohoo.com PLC215.50 GBX1.41-
GlaxoSmithKline PLC1,549.80 GBX-0.53
Greatland Gold PLC1.44 GBX-1.03-
IQE PLC105.50 GBX-5.38-
Lloyds Banking Group PLC62.63 GBX0.27
Nu-Oil and Gas PLC0.99 GBX2.06-
Purplebricks Group PLC296.20 GBX-0.27-
UK Oil & Gas Investments PLC2.38 GBX4.40-
About Author David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk