| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Allianz (ALV) Insurance |
Barrons | The share is down 39% as the market dumps financials in fear of the eurozone crisis but the sell-off looks overdone as the firm has low exposure to sovereign debt. | 66.91p 58.12p/108.05p |
|
AstraZeneca (AZN) Pharmaceuticals |
Investors Chronicle | The pharmaceuticals giant has cut 1,800 R&D jobs in the past two years. That’s a saving of $1.9bn by 2014 and should boost profitability. “Buy.” | 2,849p 2,568p/3,359p |
|
Barratt Developments Home construction |
The Daily Telegraph | The UK’s largest homebuilder has managed to push up profits as it cashes in on land bought cheaply during the recesion. On a p/e of 10.4 it remains a buy. | 81.05p 67.50p/119p |
|
BG Group (BG) Integrated oil & gas |
The Daily Telegraph | The gas-focussed explorer has “fantastic assets” including a potential eight billion barrels of oil equivalent in Brazil. A recent sell-off means the shares are cheap. “Buy.” | 1,262p 1,114p/1,564p |
|
Coral Products (CRU) Containers & packaging |
Shares | The manufacturer has snapped up a plastic packaging firm in an attempt to sell to small food producers. It’s hoped the gamble will lead to £2.1m profit in 2014. | 13.50p 6.250p/14.750p |
|
Craneware (CRW) Software |
Shares | The healthcare software specialist is enjoying rising demand for its financial planning programmes. Revenues have risen 34% to £38m and could hit £55m in 2012. | 535p 446.5p/607.8p |
|
Dairy Crest (DCG) Food producers |
The Independent | Unlike many of its peers, the maker of Cathedral City cheese has managed to pass on higher prices to customers. On a p/e of six it looks good value. “Buy.” | 337p 325p/424p |
|
Derwent London (DLN) Industrial & office REITS |
The Times | The central London property developer made more money in the last six months than it did in all of 2011. Nav per share is up 10% and it has a 450,000 sq ft pipeline. | 1,597p 1,411p/1,880p |
|
Endace (EDA) Computer services |
Shares | The market has missed the impressive strides that the network security specialist has made. Sales rose 25% in the first six months and growth looks set to continue. | 430p 175p/467p |
|
Hargreaves Services (HSP) Business support services |
The Daily Telegraph | The coal mine operator’s full year numbers were “excellent” with pre-tax profits up 20%. Revenues are also up while debt is down. This is a “growth stock… Buy.” | 1,021p 662p/1,078p |
|
H&T Group (HAT) Consumer finance |
Investors Chronicle | The pawnbroker has been a major beneficiary of the surging gold price. Profits have been reinvested and the number of stores doubled. Decent value on a p/e of 13. | 338.5p 277p/395p |
|
International Power (IPR) Multiutilities |
The Times | It’s six months since the power plant dealer linked up with GDF Suez in a “complex deal” that has allowed the firm to boost capital spending by £3.5bn. “Hold.” | 336.2p 280.7p/448.6p |
|
Johnson Service (JSG) Business support services |
Shares Magazine | The dry cleaner-cum-facilities manager is cutting debt and growing its dividend. Operating profit is up 20% and the firm looks set for “steady growth… Buy.” | 30.75p 20.25p/36p |
|
Kier Group (KIE) Heavy construction |
The Daily Telegraph | Profits at the construction group rose to £72.4m from £57.7m. The future also looks good and a contract with Scape is worth around £1bn. “Buy.” | 1,253p 1,418p/1,097p |
|
Mechan Controls (MECP) Plus |
Shares | The safety switch engineer is working on new products that it should be able to sell through its global network. Profits are up 20% and the firm has “momentum”. | 203.5p 157.50/203.5p |
|
MP Evans (MPE) Farming & fishing |
The Daily Telegraph | The palm oil and beef producer is “on track to deliver substantial increases in its Indonesian crop” and its Australian holdings. It looks cheap on a p/e of 12.4. “Buy.” | 434p 371p/500.5p |
|
Pan African Resources (PAF) Gold mining |
Shares | Shares in the South Africa-based goldminer fell 10% following disappointing output. However, platinum production will start soon and a dividend could be on the way. | 13.5p 8.150p/14.5p |
|
Petra Diamonds (PDL) Mining |
The Independent | The Africa-focussed miner is benefitting from strong diamond demand. Longer-term it has a string of good assets to develop and is due to move to the main market. | 125.5p 68.25p/189p |
|
Raven Russia (RUS) Real estate holding & development |
Investors Chronicle | The Moscow-based warehouse developer is a play on the increasing spending power of Russia’s middle class. It currently trades at a 50% discount to Nav. “Buy.” | 55.7p 47p/71p |
|
Royal Dutch Shell (RDSB) Integrated oil & gas |
Investors Chronicle | The energy company is shedding “non-core” downstream assets and using the cash to buy a slice of exciting exploration opportunities in unconventional plays. “Buy.” | 2,128p 1,831p/2,336p |
|
Ryanair (RYA) Airlines |
The Daily Telegraph | The low-cost airline should fare well in a high-oil price environment. That’s because It’s more cost-efficient than peers and has a strong balance sheet. “Buy.” | 3,005p 2,830p/4,199p |
|
Sports Direct (SPD) Apparel retailers |
Shares | The retailer grew first-quarter sales by 0.5% compared to last year. That’s impressive because last year was boosted by the world cup. Good value on a p/e of 10.4. | 218.8p 125.5p/266p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Cobham (COB) Aerospace |
The Independent | The aerospace and defence group’s has a good product offering including a gadget that produces oxygen from the air. However, it could be hit by military cuts. “Hold.” | 179.6p 173.4p/245.6p |
|
Intercontinental Hotels (IHG) Travel & leisure |
Investors Chronicle | The hotel group enjoyed a good first half to the year and beat analysts expectations. Yet it relies on “slow-growing Western economies” & looks pricey on a p/e of 15. | 1029p 939p/1,440p |
|
International Ferro Metals (IFL) Iron & steel |
The Times | The steel producer has bounced back from from the worst of the crisis but cash remains tight and it needs to ramp up production. Much still to do. “Hold.” | 17.75p 13.93p/36p |
|
Premier Farnell (PFL) Support services |
Shares | The electronics components distributor has lost 38% since June. But “keep selling” until there is sign of a pick up in global manufacturing. “Go short.” | 150.7p 151.9p/308.8p |