| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped/ 52wk high/low |
|
Andes Energia (AIM:AEN) Electricity |
Shares | This Latin American energy group has been successfully drilling on the key Mata Mora block. A big shale gas find could prompt a step up in the company’s valuation. | 32.6p 39p/11.5p |
|
APR Energy (APR) Electricity |
The Mail on Sunday | The temporary energy supply firm expects a 65% rise in profits this year. It is vulnerable to one-off setbacks, but for adventurous investors it’s a buy. | 971.5p 1,155p/900p |
|
Asos (AIM:ASC) General Retail |
Shares | The internet retailer is being boosted by higher-margin international demand. Not cheap on a forward p/e of 36, but a £1bn sales target and strong cashflows make it a buy. | 1,484p 2,508p/835p |
|
Burberry (BRBY) Personal Goods |
Shares | The luxury brand is being helped by consumers lapping up high-end products. On course for 20%+ earnings gains this year, with Chinese sales up 30%. | 1,347p 1,610p/767p |
|
Coastal Energy (AIM:CEO) Oil & Gas |
Shares | This oil firm’s valuable discoveries off the coast of Thailand have pushed the share price up. With more wells lined up, it should be able to sustain share price momentum. | 827.5p 885p/245p |
|
Compass (CPG) Travel & Leisure |
The Sunday Times | Signs of a recent recovery in the US, where this caterer earns half its profits, should underpin the shares. This ‘safe haven’ saw no significant drop in earnings even during the downturn. | 558p 616.5p/497.8p |
|
Cranswick (CWK) Food production |
Daily Telegraph | Cost inflation is no longer a major issue and the sausage producer has robust revenues. The shares trade on a 2012 p/e of 11 with a forward yield of 4.3%. | 695p 926.5p/998.5p |
|
Dotdigital (DOTD) Media |
Growth Company Investor | This digital marketing company saw pre-tax profits jump by 140% in the year to June. It’s a “great little business” with “excellent margins” and “strong demand for its products”. | 7.875p 9.13p/7.13p |
|
Generac Holdings (GNRC:NYSE) Building Materils & Fictures |
Barron’s | The number one maker of backup power for homes is booming after freak US weather caused power outages. Not expensive on a p/e of 12. | 2,396c 2,399c/2,378c |
|
GW Pharamaceuticals (GWP) Pharamceuticals & Biotechnology |
The Sunday Times | This pharma’s newly released drug Sativex has been well received across Europe. With this and other key drugs in US trials, the shares are not “out of puff” just yet. | 101.5p 133p/81p |
|
International Business Machine (IBM:NYSE) Computer Services |
Barron’s | The IT giant boasts a healthy balance sheet and remains one of the safest defensives around, thanks to multi-year contracts. On a 12.5 p/e it’s worth buying. | 1,812.4c 1812.51c/1,810c |
|
Journey Group (JNY) Support Services |
Growth Company Investor | This in-flight caterer grew sales by 26% in the first half, and returned to profitability. The balance sheet is in “rude health” and the firm is an obvious takeover target. | 3p 5p/2.13p |
|
Lamprell (LAM) Oil Equipment, Services and Distribution |
Daily Telegraph | This oil services firm is exposed to offshore oil production and storage. These markets should remain buoyant for some time. On a p/e of 13, buy. | 255.5p 409.6p/216.2p |
|
Lonrho (LONR) Support Services |
The Daily Telegraph | The agri to airline conglomerate is well placed to benefit from African growth. Profitability should rise sharply in the next few years. A speculative buy. | 12p 21.5p/10.5p |
|
Murphy Oil (MUR:NYSE) Oil & Gas |
Barron’s | The oil producer could see as much as a 40% share price rise within 18 months. The p/e of 9 is below its ten-year average and underrates its drilling potential. | 5,215c 5,231c/976c |
|
Optos (OPTS) Health Care Equipment & Services |
Shares | The eye-testing firm is aiming at 20% operating margin and revenue growth in the medium term. The takeover of rival Opko will give it the key edge in its sector. | 215.5p 230p/79p |
|
Primary Health Properties (PHP) Real Estate Investment Trusts Sector |
The Daily Telegraph | Recent NHS reforms will be good for this healthcare property group. On a yield of 5.9% in the current year, rising to 6.1% in 2012, the stock is a ‘buy’. | 305p 350p/273p |
|
Regenersis (RGS) Support Services |
Growth Company Investor | This repair specialist’s annual results beat City hopes, with headline profits up 36%. Emerging market sales are up 35%. It remains cheap on a forecast p/e of 7. | 85p 85.25p/33p |
|
Rexam (REX) General Industrials |
The Independent | The consumer packaging group will be boosted by the sale of its weak personal care arm. It is on track to hit its reduced debt target, and it offers a healthy dividend yield of 4.3%. | 332.3p 401.9p/291.4p |
|
Segro (SGRO) Real Estate Investment Trusts |
Investors Chronicle | Vacancy rates have been falling for over a year for this commercial property investment trust. But with 92 recent lease deals and a “fat dividend yield of 6.5%” the shares are a buy. | 210.3p 334.2p/208.1p |
|
Smart Metering Systems (SMS) Support Services |
Growth Company Investor | Sales at this meter specialist rose 28% in the first half. It’s well placed to profit from the push to make all meters ‘smart’ by 2019. A maiden dividend is forecast for 2012. | 83.5p 98.5p/74p |
|
Solid State (SSP) Electronic & Electrical Equipment |
Growth Company Investor | This electronic parts specialist has bought former rival Blazepoint from administrators and is now the UK market leader. Business is “significantly” ahead of this time last year. | 115p 127.5p/57.p |
|
Unilever (ULVR) Food Producers |
Investors Chronicle | The consumer staples group is benefiting from its exposure to emerging markets. Even steadily increasing sales prices should not hit sales volumes. | 2,054p 2,134p/1,662p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Homeserve (HSV) Support Services |
Daily Telegraph | Shares in the home emergency firm plunged 55% after a poor review from Deloitte. No improvement looks likely. So even with a yield of 4.4%, sell. | 250.3p 2,376p/210p |
|
Mitchells & Butlers (MAB) Travel & Leisure |
Investors Chronicle | The pub operator has a high debt-to-equity ratio and is plagued by strategic uncertainty. Senior management changes have not helped. Avoid for now, even on a p/e of 8. | 217.3p 366.3p/215.1p |
|
Wincanton (WIN) Industrial Transportation |
Investors Chronicle | A hasty withdrawal from Europe is almost complete, but costs still remain high. With large customers going bust and a big debt burden, the shares are a sell. | 69.5p 262p/66.75p |