| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
ARM (ARM) Semiconductors |
Shares | A share price slide of 18% over the last six weeks on eurozone concerns offers a rare opportunity to pick up ARM at a decent price. Long-term investors should buy. | 648p/443p* 489p |
|
Aveva (AVV) Software |
The Independent | Aveva should benefit from being in the oil, gas and power markets where prices are high and demand growing. A high-looking price-to-earnings (p/e) ratio of 20 is justified. Buy. | 1,801p/1,290p 1,638p |
|
Bahamas Petroleum (BPC) Aim |
Shares | This oil explorer’s shares fell 50% over election fears in the Caribbean, but the more supportive party won. Buy as momentum grows over a maiden exploration well drill. | 19p/5.25p 7p |
|
Brewin Dolphin (BRW)
Financial services |
The Daily Telegraph | A strategic review to cut costs and move to a fee-based model offers investors an entry route into this broker. The shares are down 13.5% over the past year, but yield an attractive 5.1%. | 180p/113p 144p |
|
Digital Barriers (DGB) Commercial services |
Investors Chronicle | This surveillance technology firm is growing fast on the back of continuing fears over global terrorism. An enterprise-value-to-sales ratio for 2013-2014 of 3.5 looks undemanding. Buy. | 197p/128p 176p |
|
Endace (EDA)
Aim |
Shares | The New Zealand-based cyber-security software firm is a likely takeover target. A one-third share-price fall over the last six months is a chance to buy with a 50% upside. | 620p/385p 398p |
|
Entertainment One (ETO)
Distribution/wholesale |
The Daily Telegraph | Shares in this entertainment firm look good value on doubts over a deal to buy Canadian peer, Alliance Films. A five-year deal for Love Film bodes well for a future Amazon tie-up. | 209p/129p 137p |
|
Findel (FDL)
Retail |
Shares | The multi-channel retailer is being turned around by CEO Roger Siddle, and could see a re-rating at 12 June finals. The shares look decent value on a 2013 p/e of 2.8. A speculative buy. | 8.75p/2.25p 3.5p |
|
Halfords (HFD)
Retail |
The Sunday Telegraph | Investors in this retailer have been alarmed by a wobble in the bicycle market, with analysts trimming forecasts. However, a 9.2% dividend yield means the shares are worth a look. | 437p/234p 240p |
|
IDOX (IDOX)
Aim |
Shares | Despite reduced public spending this software firm has 66% recurring revenue from helping firms cut costs and raise efficiency. Growth into new markets is promising. Buy on a p/e of 13. | 39p/20p 36p |
|
Lancashire Holdings (LRE) Insurance |
Shares | The Lloyd’s of London insurer is having a good 2012, with the shares up 15%. A premium to the sector is more than justified by a good track record and the prospect of a special dividend. | 827p/564p 747p |
|
Magnolia Petroleum (MAGP)
Aim |
The Mail on Sunday | This oil and gas firm is benefiting from getting in early on leases in North Dakota and Oklahoma now being opened up by horizontal drilling and fracking. Buy and be patient. | 3p/0.5p 2p |
|
Mediterranean Oil and Gas (MOG)
Aim |
Shares | This oil and gas firm should benefit from a farm out of its prospects in Malta, increasing natural gas output, and possible resolution of drilling issues with the Italian government. Buy. | 12p/4p 5.5p |
|
Metric Property Investments (METP)
REITS |
Investors Chronicle | Metric raised pre-tax profits 64% year-on-year to 31 March and the net asset value (NAV) has risen 14%. But the share price has fallen and it trades at an unwarranted discount. | 115p/79p 86p |
|
Pan African (PAF) Mining |
Investors Chronicle | A £113m deal to buy Harmony Gold’s Evander mine in South Africa should help this gold miner double gold production. This big step forward will come at a sensible cost. Buy. | 18p/10p 14p |
|
PPHE Hotel (PPH)
Leisure |
Investors Chronicle | This hotel owner looks too cheap at a 66% discount to underlying net assets. A 2011 p/e of seven isn’t bad either, as performance is strong with room rates growing 7.6% last year. Buy. | 298p/165p 206p |
|
RBS (RBS)
Banks |
The Times | While a £100 investment in this bank in 2007 would now be worth only £4, at the current price the potential return is greater due to a more robust balance sheet and less volatility. Buy. | 42p/17p 20p |
|
Silverdell (SID)
Environmental control |
Investors Chronicle | Shares in this specialist environmental services firm rose 9% on plans to buy Euro Dismantling Services. The shares are cheap on a p/e of seven. | 14p/8p 11p |
|
Tribal (TRB)
Commercial services |
Shares | A key Australian contract win in April hasn’t been priced into this education technology specialist’s share price and earnings upgrades are likely. It’s a potential long-term bid target. | 94p/38p 85p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Burberry (BRBY)
Luxury goods |
Investors Chronicle | This luxury retailer doubled revenues in five years on strong sales in fast-growing markets such as China. However, poor Chinese data could hit growth. The shares have stalled. Sell. | 1,610p/1,034p 1,424p |
|
Cairn Energy (CNE) Aim |
Investors Chronicle | Shares in Cairn Energy have been falling since a fruitless campaign in Greenland in 2011. Shareholders are angry over directors’ pay. The downtrend could continue down to 218p. | 487p/276p 291p |
|
Easyjet (EZJ) Aim |
The Times | The budget airline has a substantial fleet, but the question is where now for further growth? A row with founder Sir Stelios is complicating expansion. Avoid the shares for now. | 537p/302p 485p |
|
National Express (NEX) Transportation |
Investors Chronicle | Cuts in government bus subsidies and economic woes in Spain (40% of group profits) will hit this train and bus firm. The shares, down a quarter since the end of March, have further to go. | 270p/182p 188p |
|
Tate & Lyle (TATE)
Food products |
The Daily Telegraph | This ingredients firm is moving towards popular sugar and salt alternatives. However, a forward p/e of 12 and dividend yield of 3.9% don’t justify a buy. Avoid. | 730p/499p 672p |
|
Thomas Cook (TCG)
Leisure |
The Daily Telegraph | This tour operator is out of immediate danger, but the future looks uncertain with losses widening and the Eurozone crisis weighing on consumers. Investors should watch and wait. | 25p/14p 19p |
| * 52-week high/low | |||