| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
3i Group (III)
Private equity |
The Mail on Sunday | The investment group’s new chief executive is cutting offices, staff numbers and debt. A £7m personal investment from the CEO bodes well too. Buy. | 231p/166p* 217p |
|
Barclays (BARC)
Banks |
The Mail on Sunday | The troubled bank has been hit hard by the crisis, but the appointment of a new chairman may mark a change of fortunes. The shares are a long-term speculative punt. | 260p/134p 184p |
|
BTG (BTC)
Pharmaceuticals |
The Times | A 20% fall on poor news over sepsis drug CytoFab is an over-reaction and the pharma firm’s varicose veins and multiple sclerosis products Varisolve and Lemtrada look promising. Buy. | 426p/235p 343p |
|
Catlin (CGL)
Insurance |
The Times | Having paid out $534m on natural disasters in the first half last year, the insurer has bounced back with a $231m pre-tax profit over the six months to June. | 469p/331p 443p |
|
Enterprise Inns (ETI) Retail |
The Times | After five tough years the pub operator aims to cut debt by selling up to 1,000 pubs over two years. The shares trade on a significant discount to the net asset value (NAV) of 300p. | 71p/26p 60p |
|
Escher Group (ESCH) Aim |
The Times | A $50m deal with the US Postal Service is key for this software firm, which could benefit from cost-cutting in the sector. A p/e ratio of 12 is undemanding. Buy on weakness. | 275p/160p 221p |
|
Falkland Oil & Gas (FOGL)
Aim |
Shares | A farm-out deal with Noble Energy bodes well for drilling results at the multi-billion barrel Loligo prospect off the Falkland Islands, due out in the next couple of months. Buy. | 103p/42p 84p |
|
Genel Energy (GENL) Oil & gas |
The Daily Telegraph | The shares have fallen by 33%, but this Kurdistan-focused oil firm has cash worth 78% of its market cap and a big deal should boost the shares. A speculative buy. | 1,020p/586p 695p |
|
Hummingbird Res. (HUM) Mining |
Investors Chronicle | The gold miner has lost half its value since listing at 167p in December 2010. Yet news on its Liberia asset has been positive. Buy. | 173p/76p 82p |
|
Legal & General (LGEN) Insurance |
The Daily Telegraph | Strong first-half results (pre-tax profits were up 11% to £525m) and an 18% rise in the interim dividend bode well for the insurer’s future prospects. Buy into a prospective yield of 5.6%. | 136p/86p 132p |
|
London Mining (LOND)
Aim |
Shares | Use a 50% drop since May in the firm’s share price as a chance to buy, as a royalty agreement has allayed funding fears and the iron-ore price may be close to rock-bottom. | 391p/132p 169p |
|
Meggitt (MGGT)
Aerospace/defence |
The Times | The engineer is coping well with shrinking US military budgets and the energy division’s $100m deal with Petrobras bodes well for future growth. A prospective p/e of 12 looks cheap. | 416p/300p 405p |
|
Morgan Sindall (MGNS)
Engineering/construction |
The Times | The urban regeneration specialist has £1.8bn of orders in the pipeline and is the preferred bidder for £600m. The shares are a long-term buy on a p/e of 8.8 and a yield of 6.2%. | 725p/505p 682p |
|
NCC Group (NCC) Computers |
Shares | An £8.4m deal for US firm Matasano Security gives the cyber-security firm a US East Coast base, key resources and access to new sectors. Buy ahead of October interims on a p/e of 16. | 922p/620p 838p |
|
Old Mutual (OML) Div. financial services |
The Daily Telegraph | Plans to expand in Africa should boost future growth potential for the insurer. It has no eurozone debt exposure and £2.3bn in surplus capital. The shares are a buy on a 2012 p/e of 9.3. | 171p/98p 169p |
|
Rolls-Royce (RR) Aerospace/defence |
The Sunday Telegraph | The group should benefit from a growing civil aviation market and is boosting earnings visibility with more than half its revenue coming from aftercare, up 9% last year to £6bn. | 898p/551p 856p |
|
Randgold Resources (RRS)
Mining |
The Daily Telegraph | The gold miner’s costs are falling on higher sales and increased production. A £400m cash pile should help it buy up troubled smaller firms’ assets. Buy on a p/e of 16. | 7,720p/4,480p 6,355p |
|
Sportingbet (SBT)
Entertainment |
The Times | Poor net gaming revenues of £2m for the Euro 2012 football competition and eurozone troubles have dragged on the internet gaming firm’s shares, which could lead to bid interest. Buy. | 55p/25p 33p |
|
Tracsis (TRCS)
Software |
Investors Chronicle | The software firm’s TrainTRACS product is benefiting from a drive to make Britain’s rail network more efficient. With the £6m cash pile stripped out, a p/e of 11 looks undemanding. | 138p/55p 138p |
|
Weir Group (WEIR)
Diversified machinery |
The Sunday Telegraph | The engineer is out of favour, suffering from its exposure to the US shale market. But the long-term prospects look good, with after-sales agreements coming into play. It’s a risky buy. | 2,243p/1,332p 1,694p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
BG Group (BG)
Oil & gas |
The Mail on Sunday | BG has soared from 665p in October 2006 and investors should now follow the lead of company CEO Frank Chapman and take profits on up to 50% of their stock. | 1,554p/1,122p 1,318p |
|
Bwin.Party (BPTY)
Entertainment |
Shares | Regulatory setbacks in the internet gambling firm’s German market have hit sales and taxes look set to rise. Competition from PokerStars following a $731m US settlement is unwelcome. | 177p/92p 98p |
|
Electrocomponents (ECM) Electronics |
Investors Chronicle | The electronic parts distributor is facing slowing sales (down 2%) in its key international markets (70% of turnover). A forecast p/e of 12.8 is higher than the sector average of 9.7. Sell. | 267p/172p 220p |
|
Frontline (FRO) Transportation |
Shares | The shipping firm is facing challenging conditions due to oversupply in the sector, with first-quarter operating revenues down 40% against 2011. Sell ahead of 31 August interims. | 550p/175p 235p |
|
Inmarsat (ISAT) Telecommunications |
Shares | A strong showing by the satellite operator’s maritime division at 3 August interims boosted the shares 13% in a week, but this is unlikely to generate sustained growth. Take profits. | 565p/365p 555p |
| * 52-week high/low | |||