| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
4imprint (FOUR)
Media |
The Mail on Sunday | The promotional goods supplier has seen a 14% compound annual growth rate for six years, raising hopes of a special dividend in coming months. There’s scope for growth. | 217p 295p/202p* |
|
African Barrick (ABG)
Mining |
The Sunday Times | Poised to present sparkling third quarter results, the miner “looks set for some time yet”. Risks include a potential Tanzanian super-tax and constrictions to electricity supplies. | 545p 616.5p/394p |
|
Amec (AMEC)
Oil equipment and services |
The Independent | Energy services group Amec has been hired to manage a big project for BP in the Clair oil field off Shetland. This makes Amec a near-safe bet in uncertain markets. | 876p 1,251p/740.5p |
|
APR Energy (APR)
Electricity |
Investors Chronicle | Temporary power provider APR enjoys rising demand in emerging markets. It should reward patient long-term investors. Management performed strongly in the last downturn. | 1,080p 1,155p/900p |
|
Asian Citrus (ACHL) Aim |
Investors Chronicle | The orange producer is distancing itself from its troubled main shareholder, which caused shares to fall. Questions remain over the stake. Good value, but a speculative buy. | 44.5p 88.75p/32p |
|
Croda (CRDA)
Chemicals |
The Scotsman | Croda benefits from the growth of the cosmetics market in China and it focuses on close client relationships. Profits are up 30% despite rising raw materials costs. | 1,738p 2,081p/1,367p |
|
Datatec (DTC) Aim |
The Times | Datatec’s focus on developing markets makes it a nice play on the global economy. A price/earnings (p/e) of just over ten times is not expensive for double-digit growth rates. | 325.2p 375p/289.5p |
|
e2v technologies (E2V)
Electronic |
The Times | Shares in the specialist engineer have been unduly punished. First-half revenues grew by 16% with lots of scope for growth. At 8.5 earnings, it trades at a peer group discount. | 97.75p 146p/86.75p |
|
Fitbug (FITB)
Aim |
Shares | Risk-tolerant investors should get in as the online health and fitness group secures further contracts in the US, a new key market. Fitness operators and health group tie-ups offer growth. | 3p 7.5p/1.5p |
|
Halfords (HFD) General retailers |
Shares | The recent 32% share price fall looks overdone as the car service arm is seeing impressive growth. Sales are up 9% in the past six months. The p/e of 8.6 is undemanding for a safe 7.1% yield. | 311.5p 459p/270p |
|
Innovation Group (TIG) Software |
The Times | The insurance software provider should benefit from warmer summers and wetter winters. Having just signed a deal with RBS’s insurance division, it has further to run on a p/e of 16. | 19p 23p/12.75p |
|
Kiotech International (KIO) Aim |
Investors Chronicle | The biotech outfit is seeing rising demand for its animal supplements. A focus on higher-margin products is paying off and management is pursuing growing sales. | 83p 100p/72p |
|
Ladbrokes (LAD) Travel and leisure |
The Independent | Upcoming third quarter results should be decent, with good numbers from fixed-odds betting and favourable sporting results. Recent price weakness is a buying opportunity. | 120.75p 155.25p/114p |
|
Nanoco (NANO) Aim |
The Independent | Semiconductor material producer Nanoco is likely to be snapped up once its technology gets off the ground; it has a range of uses and is highly energy efficient. | 42.5p 115.75p/42.5p |
|
Persimmon (PSN) Aim |
Investors Chronicle | In spite of the difficult housing market, Persimmon is a buy with a strong order book and good cash flow. Trading at a discount to net asset value, it carries virtually no debt. | 490.25p 506p/336p |
|
Sirius Minerals (SXX) Aim |
Shares | Buy ahead of drilling results, which should improve confidence in the group’s potash operations. Cost estimates on retrieving an estimated £3bn-£6bn tonnes are due soon. | 10.5p 20.75p/7p |
|
St Ives (SIV) Support services |
Shares | A transition from printing to marketing services specialist is translating into improved profits. The sale of the print division helped to generate net cash for acquisitions. | 77.5p 110p/68.5p |
|
Unilever (ULVR) Food producers |
The Sunday Telegraph | Friday saw the stock in this consumer giant reach an all-time high following a deal in Russia. Yet the stock looks good on a multiple of 12. A 3.7% yield should rise to 4% next year. | 2,109p 2,109p/1,777p |
|
WH Smith (SMWH) General retailers |
The Independent | A focus on margins and cost savings means WH Smith looks in better shape than some of its peers. Expect more room in the shares, with a prospective p/e of ten times and a yield over 4%. | 530p 549p/433.75p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
BAE Systems (BA) Aerospace and defence |
The Times | These defence shares could have further to fall in light of continuing cuts. Earnings are likely to be flat over the next couple of years. Last month it announced 3,000 job losses. | 282p 370p/248p |
|
Cable & Wireless Communications (CWC) Fixed-line telecommunications |
Shares | Declining end markets and tight cash flow look set to threaten this telco’s dividend. While dominating its Caribbean market, new entrants are nudging in on its position. | 35.5p 52.75p/31.25p |
|
Hargreaves Lansdown (HL) Financial services |
The Independent | Despite a strong performance in the past quarter, this broker says investors are delaying making decisions in uncertain markets. A p/e of 24 says ‘avoid’ for now. | 500p 641.5/402.5p |
|
Logica (LOG) Software/computer services |
Shares | Weaker earnings from the public sector and lower day rates for outsourced staff should result in lowered earnings guidance for 2011 for this IT services group. | 83.7p 147.25p/74p |
|
Mouchel (MCHL) Support services |
Investors Chronicle | Results for the the road and building maintenance group will suffer this year due to previous accounting errors. That also rules out a dividend and saps confidence. | 10.75p 153.8p/10.75p |
|
Spirit Pub Company (SPRT) Travel and leisure |
Investors Chronicle | The drinks firm seems set to suffer amidst falling consumer spending. Disposal plans also look threatened by flat like-for-like sales. Rumour of management changes abound. | 40.75p 55p/33p |
|
Travis Perkins (TPK) Support services |
The Independent | The builders’ merchant saw a 5.9% rise in like-for-like turnover in the past nine months. But avoid the stock as the industry sentiment is negative and threatens stock momentum. | 865p 1,127p/715p |
| *52-week high/low | |||