Sunday share tips: Provident Financial, Jimmy Choo

9th Oct 2016 16:22

(ShareCast News) - The top brass at Provident Financial did nicely for themselves in the wake of Brexit, picking up stock in the doorstep lender on the cheap.Chief Peter Crook, Vanquis bank president Chris Sweeney and corporate affairs boss Nick Boakes bought into the shares after they lost 26% of their value in the two days following the referendum vote.Since then, the stock has recovered to trade well above its level from before Brexit.Confidence is not sky high, as the drop in sterling to 31-year lows reveals, but the shares may yet prove a good place to stash some cash, The Sunday Times´s Danny Fortson said.Unlike some of its rivals, Provident Financial finances itself via its deposits - from people with riskier credit histories - instead of through wholesale debt markets, which are prone to seizing-up.That business model means that a downturn can in fact lead to a boost in profits, because its losses are front-loaded.A crisis may also lead some banks to pull in their horns, leaving the field wide open for firms such as Provident."Buy", Fortson said. Jimmy Choo is one of the luxuruy brands that is continuing to grow while others falter and the weakening pound can only add to its allure, the Mail on Sunday´s Midas column said.Sales Stateside have been mixed in the past year, but in Asia they are booming and the company is moving into segments of the market, such as handbags and accessories as well as men´s shoes."The underlying business looks sound. The foreign exchange effect makes this look like a very promising investment," Midas said, so 'buy'.