| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
African Barrick Gold (ABG)
Mining |
The Daily Telegraph | Shares in the gold miner have slid 29% this year on rising costs and falling profits. But with production set to pick up in the second half, a price/earnings (p/e) ratio of 8.3 looks too low. | 624p/301p* 317p |
|
BG Group (BG) Oil & gas |
The Daily Telegraph | A recent share-price fall is overdone as a $5bn asset sale over two years will help the energy giant develop its quality oil and gas projects. Buy for growth on a December 2012 p/e of 13.3. | 1,554p/1,105p 1,246p |
|
Central Asia Metals (CAML)
Aim |
The Mail on Sunday | The Asia-focused copper miner is benefiting from cheap production costs, high margins and good-quality copper ore, and should produce 5,000 tonnes this year rising to 10,000 next. Buy. | 107p/54p 89p |
|
Centrica (CNA) Gas |
The Sunday Telegraph | Cool, wet weather helped the energy firm increase earnings 14% in the first half while the dividend was raised 8%. Buy on a 2012 p/e of 11.7 and an attractive yield of 5.2%. | 328p/278p 318p |
|
Compass Group (CPG) Food service |
The Daily Telegraph | The catering group is proving robust, with like-for-like sales in the third quarter rising 5.7%. A strong balance sheet and continuing buy-backs make the shares a buy on a 2012 p/e of 15.6. | 704p/498p 690p |
|
CSR (CSR) Semiconductors |
The Times | The chip maker is focusing on its niche advanced platforms work, where margins are higher at 56%. It has $250m-$275m cash in the bank and more growth to come. The p/e is 19. Buy. | 317p/153p 296p |
|
Cyprotex (CRX) Consumer services |
Investors Chronicle | The drug and cosmetics tester is benefiting from larger pharma firms outsourcing their testing functions and could grow sales at 13% for the next few years. It’s a long-term buy. | 6.75p/2.75p 5.25p |
|
DDD Group (DDD)
Aim |
Shares | Positive news over this 3D TV specialist’s trials in China could potentially double the share price. Buy ahead of updates on a 2013 p/e of 12.8. | 35p/21p 22p |
|
Domino’s Pizza (DOM)
Retail |
Shares | Strong volume growth suggests good demand for the fast-food chain, which should rise as mobile marketing efforts kick in and business grows in the new German market. | 527p/383p 504p |
|
Edge Resources(EDG) Aim |
Shares | A move to increase oil production over gas (raising it from 44% to 67% by the end of 2013) should help drive momentum behind the shares, already up 77% since listing in July. Buy. | 20p/10p 18p |
|
Galliford Try (GFRD)
Engineering and construction |
Investors Chronicle | The housebuilder has a £1.6bn order book and has already secured 82% of projected revenue for the year to June 2013. The shares, up 32% this year, are on a p/e of just nine and yield 5.4%. | 656p/346p 631p |
|
Kenmare Resources (KMR)
Mining |
The Daily Telegraph | The mineral sands miner has fallen from a February high of 61.5p due to uncertain market demand, but long-term trends look supportive. The shares trade on a p/e of 10.7. | 63p/30p 34p |
|
Minera IRL (MIRL)
Mining |
The Mail on Sunday | A fall from December’s 73.5p is undeserved as the gold miner’s Peruvian Ollachea asset is set to come on stream in late 2014, producing around 100,000 ounces a year by 2015. Buy. | 85p/41p 41p |
|
Probability (PBTY) Aim |
Shares | A £1.8m deal to buy Italian mobile casino specialist Playyoo sets this mobile gaming software firm in good stead ahead of December’s regulation loosening. The shares could easily double. | 80p/49p 75p |
|
Renew Holdings (RNWH)
Engineering and construction |
Investors Chronicle | A £15m deal for Amco in 2011 has helped the engineer move into stabler support services business, with clients such as Network Rail. This isn’t reflected in a p/e of seven. | 90p/49p 85p |
|
Rolls-Royce (RR) Aerospace/defence |
Investors Chronicle | Rolls-Royce has an order book of £60bn and should benefit from the growth of civil aerospace, where its business raised revenues 17% in the first half. It’s a buy on a p/e under 15. | 898p/519p 883p |
|
Salamander Energy (SMDR) Oil and gas |
Shares | The southeast Asian oil firm’s shares have fallen 17% since a $201m rights issue in April. This opens a speculative buying opportunity ahead of aggressive exploration drilling programmes. | 230p/143p 193p |
|
Senior (SNR)
Misc. manufacturing |
The Times | A 6% share price fall on weak news from client Cummins is overplayed as this engine maker had a June-end order book of 8,312 aircraft from Boeing and Airbus. Buy on a p/e of 11. | 215p/129p 178p |
|
Valiant Petroleum (VPP) Oil and gas |
Investors Chronicle | Use a share-price fall to buy this oil explorer. The shares should benefit from new production at the Causeway field later this year. The shares look too cheap on a 2012 p/e of seven. | 605p/351p 406p |
|
Zetar (ZTR)
Aim |
Shares | The snack food firm should benefit from improved earnings quality as it reduces its seasonal reliance. Yet the shares trade on a p/e of five and at a large discount to net asset value (NAV). | 253p/168p 210p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Britvic (BVIC) Beverages |
Shares | The branded drinks firm has been hit by the wet weather and a product recall, causing a 7.6% decline in sales in the third quarter. Use a slight rebound as an opportunity to sell. | 403p/250p 292p |
|
Barclays (BARC)
Banks |
Investors Chronicle | The bank’s £58.3bn exposure to Italy and Spain looks worrying, while fines will hit profits. The shares look cheap at 0.4 times net tangible assets, but the downside risk is too great. Sell. | 260p/134p 160p |
|
Croda International (CRDA)
Chemicals |
The Times | A move into higher-end products has helped this chemicals specialist boost sales and profits, while the shares are up from 1,822p in October. But the p/e of 19 looks a little expensive: avoid. | 2,407p/1,498p 2,364p |
|
Capital Shopping Cen. (CSCG)
REITS |
Investors Chronicle | The mall owner is suffering from client bankruptcies that have pushed the vacancy rate up to 5%. Growth potential looks limited and even the 18% discount to NAV shouldn’t tempt buyers. | 384p/283p 323p |
|
Dialight (DIA) Electronics |
The Times | The niche LED lighting specialist enjoys high margins and is aiming to double turnover this year. But the shares are already up 50% in 2012, and on a p/e of 26 the upside looks priced in. | 1,134p/631p 1,049p |
| * 52-week high/low | |||