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In our weekend digest, we summarize the best pieces published from the working week. These can be read in full by clicking on the link over the name/ticker.

Editor’s Picks

Bank of England Rate Hike

Phil ran through the Bank of England meeting from Thursday, calling for a 0.5% hike but also stressing the concern over the outlook for the rest of the year. High inflation revisions and lower growth outlook are reasons why he’s bearish on GBP.

Top Stocks For August

The team outline their favourite picks for the coming month, including Barclays as a play on higher rates, CostCo as a defensive pick and also ComSovereign as a small cap.

Stocks –


Uber has recorded its first-ever cash flow positive quarter, after burning through $25B since being founded 13 years ago in its rush towards rapid global expansion. The company said it generated free cash flow of $382M in Q2. This was much higher than some estimates of ~$100M. Uber shares rose 20% after earnings were released.

“This marks a new phase for Uber, self-funding future growth with disciplined capital allocation, while maximising long-term returns for shareholders,” said Nelson Chai, the company’s CFO.

Now Uber has the task of sustaining this positive cash flow to be self sufficient.


MOHO has a market cap of just $14.15M. The HKD IPO raised $124.8 million and debuted in mid-July for $7.80. So, Ecmoho is a much smaller company. However, the two have a similar size float. When the float is limited, relatively small amounts of buying and selling can have an exaggerated effect on the price.

Many small cap names have seen tremendous moves over the last few weeks. Just today, NVIV is up 170%. The market seems right for parabolic moves at the moment.

Yesterday, Ecmoho saw 91 million shares change hands, a mere 26x the average volume.


Over the course of the pandemic, revenue from parks and experiences slumped. This appears to have bottomed out in Q3 2020, with the previous two quarterly results showing much better growth in this area. The growth was shown with Q2 revenue doubling from the same quarter last year.

We think that Q3 earnings will show further growth in this revenue segment for Disney. With the seasonality element in play, along with a lack of any restrictions, consumer demand should have been strong.

There is the risk that the business flags up some concern going forward, given the squeeze on consumers income. The potential for a fall in real wages could negatively impact the propensity to consume later this year, and is a risk we note.

FX –

The FX Review

Phil outlined some new ideas he likes, including being bullish Yen and bearish GBP. He also chatted through the implications of the Fed and BoE central bank policy moves.

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