Make money from Trump: MIDAS SHARE TIPS reveals the winners that could make profits great again
Donald Trump has vowed to make America great again and, according to pollsters, more than 60 per cent of voters believe that means a stronger economy.
By comparison with other parts of the world, including Britain, the US is already doing pretty well. Top shares have almost tripled in value over the past decade and risen fivefold since 2004, far outperforming the UK and almost every market to boot.
But Trump wants to do better, with a turbocharged agenda designed to bolster businesses of every shape and size, provided they operate in the US and employ local people.
A number of London-listed firms should profit from the President-elect’s pro-business promises.
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Trump initiatives including allowing more oil exploration could boost London-listed firms
Delivering prosperity
Financier Bill Ackman has been a lifelong Democrat donor. This year, the New York-based billionaire came out in favour of Trump, believing that the Maga agenda will help businesses to do better and increase in value faster than their opponents. His UK-listed group, Pershing Square Holdings, has already begun to do just that.
The stock rose to £35.80 last week and there should be more to come. Pershing Square buys shares in large American companies, including Google-owner Alphabet, fast food chain Chipotle, Hilton hotels and property giant Howard Hughes.
Firms such as these are all expected to gain ground under the Trump administration.
Ackman has proved his deal-making prowess time and again and seems as sure-footed as ever today. Yet Pershing Square shares trade at a discount of around 30 per cent to the value of the group’s assets. That should reverse over time, making this all-American stock a buy.
Your good health
The US economy may be envied far and wide but the healthcare system badly needs fixing.
American hospitals spend around $1.4 trillion (£1 trillion) a year and 40 per cent of that goes on administration and related costs. That compares to around 13 per cent for the NHS.
Craneware helps US healthcare providers to become more efficient, with sophisticated software that allows hospitals and pharmacies to buy drugs more effectively, deal with insurers and middlemen more proficiently and receive payments more promptly.
Headquartered in Edinburgh, Craneware makes the vast majority of its money in America and prospects are bright. The group signed a strategic partnership with tech giant Microsoft this year, profits are forecast to rise more than 35 per cent over the next three years and there will be further gains if Trump delivers on his promises to lower business taxes.
Revenues of around $200 million (£154 million) are expected this financial year but there are high hopes that Craneware could become a $1 billion business over this decade. At £20.60, Craneware shares should go far.
Drill, baby, drill
Donald Trump has vowed to levy lots of tariffs on imported goods, particularly from China
Trump has pursued a determinedly anti-green agenda, promising to row back spending on renewable energy and allow oil and gas firms to expand exploration, development and production.
Trump may also lift restrictions on the export of liquefied natural gas, so boosting demand for US fuel worldwide.
Such moves are all music to the ears of Diversified Energy boss Rusty Hutson Junior. Diversified buys mature wells from companies that no longer want them and makes them more efficient.
The business owns more than 65,000 wells, 85 per cent of which produce natural gas, and it is expanding at pace. The group’s heartland is centred on states such as Ohio, West Virginia and Pennsylvania, many of whose voters are ardent Trump supporters.
Recently, Hutson added to his portfolio with sites strategically located near gas export hubs. Diversified shares have had a rough ride, tumbling from £28 to just £9.55 over the past two years. Gas prices have been depressed, the group was quizzed by Democratic politicians about methane emissions from its wells and dividend payments were cut this year.
Looking ahead, prospects seem much brighter. Most forecasters believe gas prices will rise over the longer term, regulators are expected to be more supportive of companies such as Diversified and the company has made huge technical strides that allow the business to expand production while keeping costs low.
This should boost profitability and secure dividend payments, with $1.16 (90p) expected for 2025, putting the stock on a yield approaching 10 per cent. Diversified shares have been disappointing of late but should move ahead, making this an attractive long-term buy.
His favourite word
Trump has said ‘tariff’ is his favourite word and vowed to levy lots of them on imported goods, particularly from China. This could benefit British firms Clarkson and Coats in very different ways.
Clarkson is the world’s biggest provider of shipbroking and other services, working with ship owners, ship builders and thousands of businesses that ferry goods around the globe.
Trade volumes may suffer over the long term if Trump’s rhetoric is translated into action. In the short term, however, companies may be inclined to shore up supplies and fast, before punitive tariffs are introduced.
That is likely to drive up maritime traffic, increase freight prices and boost Clarkson’s bottom line.
Supporters were already looking for decent gains in sales and profits over the next 12 months. Forecasts could now be revised upward, giving Clarkson shares a lift. Now £36.50, the shares topped £45 a few months ago. Backers, including brokers at Zeus Capital, think the price should return to its highs. That may happen sooner rather than later.
Coats is at the other end of the scale. Founded as a weaving and textile pioneer more than 250 years ago, it is the largest producer of threads, zips and related materials for clothing, shoes and handbags, stitching together goods from designer trainers to women’s undies.
Many firms in this sector rely heavily on China. Coats uses Chinese factories but also has facilities in Vietnam, Indonesia and India so it can shift supply chains swiftly if necessary. That should give the firm a clear advantage if Trump begins to impose heavy tariffs on Chinese imports.
Brokers, such as Peel Hunt, were already optimistic, expecting profits to increase from $205 million last year to $275 million by 2026. Those numbers could move higher still if Coats takes market share from less nimble-footed competitors. At 95p, the shares should deliver long-term rewards.
Building and growing
Other likely beneficiaries of the new White House regime include infrastructure specialist Hill & Smith and promotional goods group 4imprint. Headquartered in Solihull, West Midlands, Hill & Smith has a thriving business in the US, supplying steel products and road safety kit, from pipeworks to safety barriers.
Spending is expected to increase under Trump, with American infrastructure sorely in need of improvement, while Hill & Smith should also benefit from a more business-friendly tax regime. That makes the shares attractive, at £21.10. Likewise, 4imprint, responsible for promotional products from mugs to polo shirts to pens.
Listed in London but based in Wisconsin, the firm has been a strong performer for years but should gain ground if business confidence increases under the Republicans. At £56.64, the shares are pricey but high quality.
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