| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Anite (AIE)
Computers |
The Mail on Sunday | This mobile-phone testing specialist has quadrupled since January 2009, but there’s more to come. Buy ahead of results in early July as profits should be higher than expected. | 132p/57p 116p* |
|
API Group (API)
Aim |
Investors Chronicle | This packaging firm has turned around under CEO Andrew Turner. A key deal with a tobacco major could spark bid talk. It’s a speculative buy on a forecast price/earnings (p/e) ratio of six. | 69p/28p 59p |
|
Bellway (BWY) Housebuilders |
Investors Chronicle | Net reservations for this housebuilder are up 9% year-on-year and average selling prices by 5%. The shares look too cheap on a p/e of 12 and a discount to end-March net asset value. | 875p/532p 741p |
|
Centrica (CNA)
Gas |
The Sunday Telegraph | This power firm should benefit from generating more of its own energy, with interesting prospects in wind and oil. The 5.3% yield is good and the shares looks cheap on a p/e of 11.7. | 332p/278p 315p |
|
Cluff Gold (CLF)
Mining |
Investors Chronicle | Despite a fall in output at this gold miner’s Kalsaka mine, first-quarter cash profits hit $5.3m on high gold prices. Good news on its Baomahun mine in Sierra Leone could see a re-rating. | 115p/62p 68p |
|
InternetQ (INTQ) Aim |
Shares | The recent slide on concerns over Greek woes is overdone. This internet games firm has little exposure to the eurozone and its Akazoo platform has added 900,000 new users in 2012. | 323p/122p 235p |
|
Johnson Matthey (JMAT)
Chemicals |
The Daily Telegraph | Plans to grow research spending to £140m should keep this chemicals innovator – on a 2013 p/e of 14.6 – at the top of its fields. Buy before 3 August for a £1 a share special dividend. | 2,426p/1,484p 2,304p |
|
Lancashire Holdings (LRE)
Insurance |
The Times | This insurer has a third of its business in high-margin reinsurance, and also underwrites the re-insurers. The yield is low, but there are bumper special payouts when times are good. | 827p/564p 760p |
|
Laura Ashley (ALY) Retail |
The Times | With like-for-like British sales up 5.4% and e-commerce up 18.8%, this retailer is expanding its shops and its online reach. It’s a buy, despite the rather illiquid shares. | 24p/15p 23p |
|
Micro Focus Inter. (MCRO) Aim |
Shares | Recent deals for UK technology firms, including the £1.7bn purchase of Logica by Canadian IT provider CGI, should spark further bid talks, benefiting this software firm. It’s on a 10.2 p/e. | 482p/230p 437p |
|
Rolls-Royce (RR)
Aerospace/defence |
The Sunday Telegraph | This engine maker should benefit from growing airline fleets in emerging economies. Its order book at the end of last year was £62bn. The 14.3 p/e isn’t cheap, but buy the shares for growth. | 863p/519p 819p |
|
S&U (SUS) Financial services |
Investors Chronicle | This non-standard loan firm has seen customer numbers rise, while its motor finance unit Advantage Growth could raise sales by 50% by 2014. It’s cheap on a forecast p/e of eight. | 850p/548p 765p |
|
Salamander Energy (SMDR)
Oil & gas |
Shares | Use a 36% fall due to a $212m discounted rights issue as a chance to buy this oil firm ahead of this year’s exciting exploration campaign, which is targeting more than 500 million barrels. | 237p/143p 162p |
|
Serco (SRP)
Commercial services |
The Times | A string of acquisitions has put this service firm in a good position to take bigger contracts in the public sector as the government looks to boost efficiency and cut costs. Buy on weakness. | 579p/455p 546p |
|
Silverdell (SID)
Aim |
Shares | The purchase of industrial decommissioning expert EDS opens up new areas, customers and higher margin work for this hazardous materials removal firm. Buy on a forecast p/e of ten. | 13.5p/8p 11p |
|
Standard Chartered (STAN) Banks |
Investors Chronicle | A 20% drop since mid-March on Greek fears looks overdone. This bank is more exposed to fast-growing Asia, where operating profit in Hong Kong and Singapore grew by around 40%. | 1,684p/1,142p 1,315p |
|
Trap Oil (TRAP) Oil & gas |
Investors Chronicle | A £4.3m placing could help this oil explorer fund the purchase of one-third stakes in three North Sea blocks containing an estimated 35billion – 60 billion cubic feet of gas. Buy. | 44p/20p 25p |
|
Trifast (TRI) Hardware |
Shares | This industrial fastening expert looks undervalued, given its fast-growing international operations and double-digit growth potential. Buy on a p/e of 8.6 ahead of the 19 June results. | 54p/35p 40p |
|
Vodafone (VOD) Telecommunications |
The Daily Telegraph | A deal with 02 parent Telefonica should reduce signal dark spots and cut the cost of building a 4G network, saving this telecoms giant up to £800m. Buy on a yield of 8.5% and a p/e of ten. | 182p/150p 169p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
3i Infrastructure (3IN)
Closed-end fund |
Shares | Sell this infrastructure fund ahead of a possible sell-off by private equity firm 3i at their AGM on June 29; 3i chief executive Simon Borrows is under pressure to sell the firm’s 34% stake. | 129p/113p 124p |
|
Admiral (ADM) Insurance |
Shares | This motor insurer has risen quickly (14% compound annual growth) over the past five years, but things now look tougher with more rivalry. Sell. | 1,677p/773p 1,044p |
|
Essar Energy (ESSR)
Oil & gas |
Shares | Use a near-20% rally to sell this energy firm. Reports of a green light for its coal project in Madhya Pradesh look premature – the final decision still needs to be made by India’s cabinet. | 443p/100p 139p |
|
Ocado (OCDO)
Food retail |
Investors Chronicle | This online grocer is growing sales at 13%, but is losing market share as Sainsbury’s, Asda (both 20%) and Waitrose (26%) are all growing their online business more rapidly. Sell. | 226p/52p 106p |
|
Severfield-Rowen (SFR)
Engineering |
The Daily Telegraph | Severfield-Rowen’s shares have slid since clearing 300p in Jan 2011. This slide may continue, given the uncertain outlook for British construction and negative sentiment. Avoid. | 242p/136p 153p |
| * 52-week high/low | |||