| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Anite (AIE) Computers |
Shares | The phone-testing specialist is set to benefit from the move to 4G. Its travel-software arm looks interesting. Trading updates are set for early November and could prompt a re-rating. | 134p/57p* 124p |
|
Anglo Pacific (APF) Mining |
The Daily Telegraph | The mining firm bounced back from a weak first quarter, and a 4.7% boost to the interim dividend shows confidence. Royalties on four other investments should kick in soon too. Buy. | 345p/220p 249p |
|
Avocet Mining (AVM) Mining |
The Daily Telegraph | A Chinese approach for fellow gold miner African Barrick Gold has lifted the sector and could spark a wave of mergers and acquisitions. The West African miner is a speculative buy. | 289p/62p 93p |
|
Balfour Beatty (BBY) Engineering/construction |
The Sunday Telegraph | A refocus from British to the world markets has helped the firm boost interim pre-tax profits by 12% and hold its key £15bn order book. Buy for a solid yield of 4.8% rising to 5.1%. | 313p/215p 292p |
|
Cineworld (CINE) Entertainment |
The Daily Telegraph | Despite hitting record highs, shares in the cinema chain look attractive with a strong second half of releases such as James Bond film Skyfall. It’s a buy on a yield of 5.2% and p/e of 11.4. | 245p/173p 233p |
|
CLS Holdings (CLI) Real estate |
Investors Chronicle | The property group has increased like-for-like rental income by 3.1% and its net asset value (NAV) by 5.6%. The cost of the firm’s debt is around half its 7% yield on assets. Buy. | 726p/501p 678p |
|
Cluff Gold (CLF) Mining |
The Daily Telegraph | Use a share-price slump to buy the gold miner as it is set to hit targets, costs have fallen and half-year profits were up to $5.5m from $2.2m. A £29m cash pile could fund asset purchases. | 115p/49p 58p |
|
Eckoh (ECK) Aim |
The Times | The payment services firm is winning lots of deals and already has 50% of the water market. Having doubled since the start of 2011, the shares still look good value on a p/e of 10.7. Buy. | 14p/6.8p 13p |
|
EnQuest (ENQ) Oil and gas |
The Daily Telegraph | Despite pipeline issues, the North Sea oil group is set to meet full-year guidance and should benefit from a tax break in 2012 that will halve its effective tax rate. Buy on a 2012 p/e of 10.6. | 136p/84p 115p |
|
Greggs (GRG) Food |
Shares | Use share-price weakness to buy into the baker as the business remains cash generative and should benefit from improved weather. A forward p/e of 12.2 and yield of 4.1% are attractive. | 564p/451p 498p |
|
Hikma (HIK) Pharmaceuticals |
The Times | The Jordan-based drugs firm has largely avoided the eurozone crisis and should benefit from a post-Arab Spring recovery in the Middle East as healthcare budgets are increased. Buy. | 785p/550p 750p |
|
Ithaca Energy (IAE) Aim |
Shares | The North Sea oil firm is down 25% since spring and now looks cheap on a 2013 p/e of 4.1. Buy ahead of appraisal well results from its Hurricane asset, which are due out in October. | 212p/86p 134p |
|
John Menzies (MNZS) Distribution/wholesale |
Shares | Despite a 2% drop in half-year results, John Menzies has potential to grow its 2%-3% share of the global aviation services market. A 2013 p/e of 8.5 looks cheap. | 660p/468p 616p |
|
Origin Enterprises (IE:OIZ) Agriculture |
Investors Chronicle | The firm’s focus on agronomy (two-thirds of operating profit) should help it ride the demand for higher crop yields. The shares don’t reflect the potential for growth on a p/e of eight. | €3.9/€2.9 €3.9 |
|
Personal Group (PGH) Insurance |
The Mail on Sunday | The blue-collar employee benefits firm has grown steadily since the 1980s and offers a yield of over 5%. Buy ahead of new CEO Mark Scanlon unveiling his growth strategy next month. | 368p/254p 347p |
|
Smiths News (NWS) Media |
Investors Chronicle | The newspaper and magazine distributor has boosted revenue visibility with a five-year £200m-per-annum contract extension with News International. Buy on an attractive 8% yield. | 118p/75p 115p |
|
Syngenta AG (CH:SYNN) Chemicals |
Investors Chronicle | High crop prices linked to drought in America should continue to drive demand for the group’s seed-care products. Price pressures should also drop away in the second half. | Chf340/Chf223 Chf335 |
|
Tracsis (TRCS) Aim |
Shares | The transport software firm should benefit from cost-cutting, while pilot trials in Australia and Scandinavia look interesting. A p/e of 12.5 represents an unfair 20% discount to the sector. | 138p/55p 129p |
|
Victoria Oil & Gas (VOG) Oil and gas |
Investors Chronicle | The energy firm’s Logbaba gas project is set to produce five million cubic feet a day by the end of the year. Buy on a 65% discount to estimated net asset value (NAV). | 5.1p/2.3p 2.5p |
|
Workspace Group (WKP) REITS |
Investors Chronicle | Occupancy rates have climbed to 88.4% with potential to improve further. The shares are far cheaper than for other London property specialists and trade at a 24% discount to NAV. Buy. | 260p/211p 252p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Essar Energy (ESSR) Oil and gas |
The Times | Red tape in India is delaying the energy firm’s new coal plants and mines, and has hit production at the Salaya plant. It’s one to avoid. | 330p/100p 112p |
|
Huntsworth (HNT) Advertising |
The Times | The PR firm posted a decent first-half with pre-tax profits up 21%. But British sales (which account for a third of the total) fell 5.3%. With clients cutting costs, performance may suffer. | 70p/32p 51p |
|
Invensys (ISYS) Misc. manufacturing |
Shares | The fragmented nature of the business and a £235m pension deficit mean takeover talk around this industrial controls and software group looks premature. It’s an opportunity to sell. | 280p/167p 250p |
|
Premier Foods (PFD) Food |
Shares | Despite encouraging half-year figures and a 2% rise in sales, the Hovis-to-Mr Kipling food group is facing sharp rises in wheat prices, which are likely to hit sales and margins. Sell. | 185p/30p 67p |
|
PV Crystalox Solar (PVCS) Semiconductors |
The Times | Oversupply has seen the price of the firm’s silicon wafers (used in solar panels) drop by 70% in the year to April, while subsidy cuts have hit profits with a first-half loss of €12.2m. Avoid. | 19p/3.6p 7.9p |
| * 52-week high/low | |||