| BUY | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
AB Foods (ABF) Food producers |
The Times | This conglomerate is a “prime defensive stock” thanks to the broad spread of its activities from Primark to sugar. A big bounce in the sugar price is due in 2012. | 1,087p 1,197p/916.5p |
|
Asian Citrus (ACHL) AIM |
Investors Chronicle | This orange producer’s shares have suffered a sell-off due to fears over Chinese agriculture after the Sino-Forest scandal but this is a good firm with growing production. | 57.5p
88.8p/43p |
|
Barratt Developments (BDEV)
Household goods & home construction |
The Daily Telegraph | An update from this house builder showed a drop in sales causing the shares to drop but the fall was due to a switch in focus from volume to good margins. Buy. | 105.9p
120.6p/69p |
|
Begbies Traynor (BEG)
Aim |
Shares | Buy shares in this insolvency specialist ahead of a pick up in levels of UK corporate distress. A decision to sell off other divisions to focus on insolvency looks a “correct” one. | 41.5p
80p/39p |
|
BHP Billiton (BLT)
Mining |
The Sunday Telegraph | A bid for shale gas group Petrohawk looks like a “sensible move” for this miner as gas is “undervalued” and should do well over the long term. The shares yield 2.5%. | 2,340p
2,654p/1,750p |
|
Brady (BRY) Aim |
The Independent | This software firm specialises in solutions for the commodity markets. Revenues in the first half rose by 90% year-on-year to £8.8m. “Things are moving in the right direction”. | 77p 87p/59p |
|
Brewin Dolphin (BRW) Financial services |
The Mail on Sunday | Growth prospects are “good” at this investment manager and the yield is almost 5% yet the shares have fallen over fears about the impact of a nervous market. Buy. | 160p 186.9p/113p |
|
British American Tobacco (BATS) Tobacco |
Investors Chronicle | This tobacco firm is “well exposed” to fast-growth emerging markets and is developing alternative nicotine products – a market with “potential for growth”. The yield is 4.4%. | 2,859p 2,866p/2,156p |
|
Centaur Media (CAU) Media |
The Independent | This media firm has surprised analysts with news of a “strong end to the year” with revenues expected to be up 14%. The firm is “on the right track” and a p/e of 11 is “cheap”. | 51p 73p/45p |
|
Daniel Thwaites (THW) Plus |
Shares | Shares in this pub operator may have “speculative appeal” as the benefits of an ongoing restructuring programme and rebranding start to feed through to performance. | 138p 174p/128p |
|
DP Poland (DPP) Aim |
Shares | This Polish pizza operator has the exclusive rights to open Domino’s Pizza stores in Poland and new store openings are “gathering pace”. Buy on current weakness. | 77p 121.5p/53p |
|
Electrocomponents (ECM) Support services |
The Sunday Telegraph | This electronics firm’s “strategy is sound and it is working”. The group continues to increase its product range and has “ambitious but achievable targets”. Keep buying. | 238.7p 298p/202.8p |
|
GKN (GKN) Automobiles & parts |
The Daily Telegraph | This engineering firm get a third of its sales from the aerospace industry and is well-placed to benefit from increasing production of passenger planes. “Undervalued”. | 227.9p 249p/130.9p |
|
Harvard International (HAR) Aim |
Shares | Consumer electronics might be an “exceptionally tough market” but this set-top box maker could be an “astute contrarian play” given its current discount to cash. | 26p 63p/24p |
|
ICAP (IAP) Financial services |
The Times | The world’s biggest inter-dealer broker “does terribly well in volatile markets” and has been having some of the busiest trading in its history. “Buy for the longer term”. | 482.1p 575p/374.6p |
|
Lavendon Group (LVD) Support services |
The Daily Telegraph | This firm rents out elevated work platforms to builders. It has posted “impressive” growth in the first half across Europe. It could be a takeover target on a 2012 p/e of 11. | 108p 120p/43p |
|
May Gurney (MAYG) Aim |
Investors Chronicle | This outsourcing firm is defensively positioned and has a “strong” balance sheet and has the potential to make bolt-on acquisition. On a p/e of 10 the shares look cheap. | 284p 291.8p/175.3p |
|
Meggitt (MGGT) Aerospace & defence |
The Independent | This engineering group supplies the defence, energy and civil aerospace markets. The City is expecting the firm to post healthy sales growth next month. The stock is “cheap”. | 369.2p 392.6p/255.7p |
|
Monitise (MONI) Aim |
The Independent | This firm is a “leading player in the fast-growing world of mobile payments”. Annual revenues more than doubled last year to £14m and the same could happen again. | 37.5p 40p/15.75p |
|
Rio Tinto (RIO) Mining |
The Daily Telegraph | The prospect of rising prices couple with rising production make this mining giant an attractive prospect especially as prices are “likely to remain high for many years”. | 4,387p 4,718p/2,976p |
|
Sagentia (SAG) Aim |
Shares | This revitalised technology consultant continues to beat profit expectations after streamlining its business and moving away from working on a fixed-price basis. | 84p 90p/45.5p |
|
Telecom Plus (TEP) Fixed line telecommunications |
The Independent | This utility provider has increased its customers and services, and announced “strong” cash generation. It also has “good visibility on long-term profits”. Buy despite a p/e of 20. | 681.5p 705.3p/340p |
|
UK Coal (UKC) Mining |
The Independent | A positive trading up date means If this miner can keep growing production, unlock value from its landholdings and cut debt there is “ample scope for upside gains”. | 37p 57.3p/32p |
|
Ultra Electronics Holdings (ULE) Aerospace & defence |
The Daily Telegraph | This defence firm is involved in a number of growth areas including anti-submarine electronics. It’s balance sheet is robust and more acquisitions are likely. The p/e is 14. | 1,676p 1,903p/1,521p |
|
William Hill (WMH) Travel & leisure |
Shares | This bookmaker is “delivering the goods” and should command a top rating because it does not face the “high regulatory risks” that its peers are facing. A “safe play”. | 220.6p 239.2p/153.7p |
| SELL | |||
| Company | Publication | Reason | Price tipped |
|
Britvic (BVIC) Beverages |
Investors Chronicle | This soft drinks firm is facing continuing weakness in some of its markets alongside potential price rises for raw materials. It’s hard to see how trading will improve. | 379p 518p/355p |