One of the industry’s biggest turn-around stories continues as the share price of Safestyle UK has risen a remarkable 44% over the past month.

From a company that looked close to being on the brink, this is a company which has shown the other national installers how to turn a major fenestration installer around.

Dramatic December

This chart from Bloomberg says it all:

Credit: Bloomberg

There was no major news released from the company at the time. In fact there has been no major updates since September. If you look at the chart however you’ll see that the initial sharp rise happened just after the General Election results. I know that a lot of businesses will have felt relief at the outcome, many feeling that the path ahead lay a lot clearer now. Perhaps some saw this as chance to reinvest in companies such as home improvement businesses in the hopes that the spending might start to increase in 2020 now some level of clarity and political normality has been restored.

After the initial snap upwards you can see a gentle slope downwards. This looks like simple profit taking over the next few days as we headed towards Christmas. But the share price resumed its climb steadily towards the end of the year, resulting in a price today that is more than 44% higher than at the start of last month.

To me this looks like optimism trades. We ended the year very differently to how we started it and I think investors will be looking at companies like Safestyle as a barometer. If the public start to spend again, it will likely be on big ticket items like home improvements.

As we head further into the New Year we should get some initial 2019 results from the company. If they show positive numbers that continue to demonstrate that their turnaround plans remain on track, we could see their share price rise further.

Please note that this is an opinion piece and does not represent investment or share trading advice.

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