| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Accsys Technologies (AXS)
Aim |
The Times | The £50m firm has developed a technology to make wood less prone to weathering. Clients include Disney and Debenhams. It’s very early days, but the potential market is huge. | 0.20p/0.07p* 0.17p |
|
Aminex (AEX)
Aim |
Shares | Positive news on the oil explorer’s 75%-owned Ntorya-1 well in Tanzania should drive the shares forward. The stock trades on a big discount to an estimated net asset value of 20p. | 7.75p/2.5p 4.5p |
|
Aviva (AV)
Insurance |
Investors Chronicle | A strategic review under the new chairman should help the life insurer trim non-core business and improve performance. The shares look cheap, trading at less than half embedded value. | 442p/251p 287p |
|
Babcock (BAB)
Commercial services |
The Times | The support services fim has a £13bn pipeline and should benefit from nuclear contracts and army outsourcing as troop numbers are cut back. Buy on a price/earnings (p/e) ratio of 12.5. | 894p/560p 867p |
|
Berendsen (BRSN) Commercial services |
The Daily Telegraph | The textile cleaning firm is improving margins, which should help it benefit from any market recovery. The shares look good value on a December 2012 p/e of 10.4. | 563p/403p 509p |
|
Booker Group (BOK)
Food |
Investors Chronicle | The £140m purchase of wholesale rival Makro could boost earnings by a fifth by 2015. A strong cash position (£63m) should underpin a growing dividend. | 94p/63p 93p |
|
Cineworld (CINE)
Entertainment |
The Sunday Telegraph | Despite a tough first half of the year, this cinema operator should benefit from blockbusters such as Batman, Spiderman and James Bond. Buy for a yield of 5.75%. | 223p/165p 214p |
|
Costain (COST) Engineering & construction |
Shares | The building firm is concentrating on civil infrastructure and looks cheap on an enterprise value to earnings before interest and tax ratio of three. Buy for the 5% dividend yield. | 248p/174p 214p |
|
CSF Group (CSFG) Commercial services |
Investors Chronicle | The data-centre operator is enjoying higher rental charges and growing demand, with capacity doubling in two years. The shares trade on a p/e of nine. | 74p/38p 45p |
|
DS Smith (SMDS) Forest products & paper |
The Daily Telegraph | A e1.6bn deal for Swedish peer SCA gives this packaging firm inroads into northern Europe and should boost ties with clients such as Reckitt Benckiser. Buy on a 2013 p/e of ten. | 186p/112p 155p |
|
Energetix (EGX) Aim |
The Mail on Sunday | The firm’s energy-efficient boiler can save households on electricity bills and a clever business model should attract new customers. It’s a long-term buy for the growth potential. | 34p/20p 23p |
|
Genus (GNS) Agriculture |
The Daily Telegraph | Population growth and higher demand for meat in developing countries should boost the cow and pig genetics firm. A 2012 p/e of 25 reflects the company’s growth potential. | 1,467p/815p 1,254p |
|
GKN (GKN) Auto parts & equipment |
The Daily Telegraph | A £633m deal for Volvo’s aeroengine division looks good value and should boost this engineer’s exposure to the global aircraft business. | 240p/153p 211p |
|
Greencore (GNC) Food |
Shares | The convenience food producer has established a strong position in Britain and America. Buy ahead of 31 July updates as market share gains and American news could prompt a re-rating. | 85p/46p 76p |
|
Greene King (GNK) Retail |
Investors Chronicle | The pub operator’s focus on selling more food (now 39% of profits) and moving its pubs upmarket looks astute. Its dividend yield of 4.5% has risen 9% a year since 1952. | 569p/402p 560p |
|
Ideagen (IDEA) Aim |
Shares | Buy this compliance software and document management specialist ahead of finals later this month, which are expected to show a 70%-plus jump in revenue. The 2013 p/e is 8.7. | 16p/14p 15p |
|
PayPoint (PAY) Aim |
Shares | The transaction specialist’s Collect+ service should benefit from a trend towards ‘click and collect’ purchasing, with likely contract wins including clients such as Tesco and John Lewis. | 764p/433p 708p |
|
Soco International (SIA) Oil & gas |
The Times | A $95m deal to buy out the 20% minority share in Soco Vietnam should make it easier for this oil explorer to sell its $1.2bn-worth of Vietnamese interests. It’s a speculative punt. | 387p/253p 310p |
|
Segro (SGRO) REITS |
The Daily Telegraph | The industrial property owner is focusing on European distribution hubs with a £130m deal to buy eight warehouses near Paris and Lyon. The shares are good value on a 2012 p/e of 12.5. | 315p/194p 219p |
|
Stadium Group (SDM) Misc manufacturing |
Investors Chronicle | Despite revenues shrinking in the first half, the electronics firm should meet forecasts and there are two major trial programmes set to kick in. It’s on a p/e of just 7.6. Buy. | 86p/61p 62p |
|
Tribal Group (TRB) Commercial services |
Investors Chronicle | The education services firm is refocusing on software and technology and is expanding into the Middle East and Australasia. A £139m order book is available on a low p/e of under ten. | 94p/40p 89p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Avocet Mining (AVM) Mining |
Shares | A likely dividend suspension and project delays could harm sentiment towards this West African gold producer at 1 August interims. Costs are high and production is falling. Sell. | 289p/62p 78p |
|
Barclays (BARC) Banks |
The Daily Telegraph | Shares in the troubled bank look decent value after the Libor fixing scandal. However, the risks of litigation, increased regulation and a power vacuum mean the shares should be avoided. | 260p/134p 167p |
|
easyJet (EZJ) Airlines |
The Independent | The budget airline has increased passenger levels 9.7% against June 2011 and cut the proportion of empty seats. But with the shares up a third this year, it’s time to take profits. | 549p/302p 530p |
|
Int’l Con Airlines Group (IAG) Airlines |
The Independent | Despite the long-term potential of the BMI deal, the owner of British Airways and Iberia is facing eurozone worries and fuel costs. With no earnings this year and no yield, avoid. | 246p/131p 156p |
|
McBride (MCB) Household products |
The Times | While a 2012 p/e of ten may look undemanding, this Europe-focused private label homeware firm faces branded competition, raw materials price pressure and austere conditions. Avoid. | 136p/105p 121p |
| * 52-week high/low | |||