| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Aureus Mining (AUE)
Aim |
Shares | The gold miner is raising funds to build a new mine to exploit its New Liberty gold deposit. Buy the shares ahead of the feasibility study results, due in late September/early October. | 91.5p/45.5p* 61p |
|
Bank of America (NYSE: BAC)
Banks |
Investors Chronicle | Bank of America, which has limited exposure to the eurozone crisis, is firmly in recovery mode. Profits are set to surge, yet the shares trade at just 0.7 times book value. Buy. | $10.10/$4.92 $9.03 |
|
Bellway (BWY)
Housebuilders |
Investors Chronicle | Bellway is in a sweet spot as land is cheap to buy and completions are up 6.2% this year. Results are out on 16 October and the housebuilder’s shares are likely to rise before then. | 941p/550p 941p |
|
Circle Oil (COP)
Aim |
Shares | Oil explorer Circle has an aggressive drilling programme planned for late 2012 that is fully funded. Brokers say the shares trade at a 24% discount to Circle’s producing assets. Buy. | 28.5p/16p 21p |
|
Cluff Gold (CLF)
Gold mining |
The Times | Gold miner Cluff has signed a $20m deal with Samsung to fund development of its project in Burkina Faso. Further deals could follow. It’s a good bet on a strengthening gold price. | 107.5p/49p 79p |
|
Entertainment One (ETO)
Film and TV rights |
Shares | The acquisition of Alliance Films bolsters the firm’s content library by 50% and includes The Hunger Games trilogy. Savings from the deal could top £12m. Expect earnings upgrades. | 208.5p/128.5p 168p |
|
Genel Energy (GENL)
Oil and gas services |
Shares | Shares in the Tony Hayward-led oil explorer are discounted too harshly due to the political risk of operating in Kurdistan. The shares offer cheap exposure to a burgeoning oil province. | 1,020p/586p 705.5p |
|
Hansteen (HSTN)
Industrial property |
Investors Chronicle | In a classic Hansteen deal, the industrial landlord has snapped up a bankrupt Essex industrial estate and three units in Germany for £26.2m, producing rent of £2.7m or a 10% yield. Buy. | 81p/67p 79p |
|
Kenmare Resources (KMR)
Mining |
Investors Chronicle | Recent comments from DuPont on the strong demand for titanium dioxide mean that shares in Kenmare, whose mineral sands are used as feedstock for the chemical, are worth buying. | 63p/30p 40p |
|
Kier Group (KIE)
Infrastructure |
The Daily Telegraph | Full-year profits at Kier have fallen and trading remains challenging. However, it boasts a solid balance sheet, an order book worth £4.3bn and the shares yield a prospective 5.1%. Buy. | 1,489p/1,089p 1,401p |
|
May Gurney (MAYG)
Infrastructure |
The Daily Telegraph | A recent profit warning halved the share price, but the sell-off looks overdone. Around 60% of the firm’s revenues come from the public sector. It’s a speculative buy on a 2013 p/e of four. | 305p/98p 99p |
|
MP Evans (MPE)
Agriculture |
The Daily Telegraph | Half-year profits at the farming group fell due to softer palm oil prices. However, the interim dividend was held and a full slump in palm oil prices isn’t expected. Buy on a 2013 p/e of 12.3. | 560p/380p 435p |
|
Mitchells & Butlers (MAB)
Pubs |
Shares | After an 18-month search, new CEO Alistair Darby has joined which is hugely positive for the shares. Darby should deliver profit margin improvements. Buy ahead of results in November. | 297p/211p 283.5p |
|
N Brown (BWNG)
Home shopping |
Shares | The internet and catalogue shopping group is benefiting from growing demand for online shopping and its focus on the outsize market. Rising online sales could spark a re-rating. | 297p/22p 282p |
|
Randgold Resources (RRS)
Gold mining |
The Daily Telegraph | Shares in the UK’s biggest listed gold miner aren’t cheap, trading on a p/e of 21, falling to 16.8 next year. But it has a solid track record and should gain from more quantitative easing (QE3). | 7,720p/4,480p 7,420p |
|
Restaurant Group (RTN)
Restaurants |
The Mail on Sunday | While some eateries are suffering, Restaurant Group is thriving. Half-year profits are up 7% and trading is strong. Expect further share-price growth and a possible special dividend. | 364p/265p 359.5p |
|
Rio Tinto (RIO)
Mining |
The Daily Telegraph | Things may look gloomy for Rio as Australia hikes the royalty rates it pays on coal from 10% to 12.5%, but QE3 and China’s $157bn infrastructure spending programme will boost the shares. | 4,029p/2,636p 3,070p |
|
Rockhopper (RKH)
Oil exploration |
The Times | Shares in the Falklands oil explorer have fallen, despite the Premier Oil deal. Yet this takes it from being a speculative play to a company that could earn revenues from the deal in 2017. | 399p/156p 186p |
|
Safestore (SAFE)
Temporary storage |
The Times | Both Safestore and rival Big Yellow have put the brakes on opening any new outlets. However, Safestore enjoys strong cash flow and low capital spending could mean a hike in the dividend. | 128.5p/92p 104p |
|
Vodafone (VOD)
Mobile telecoms |
The Times | Concerns over whether Vodafone will receive another Verizon dividend in 2013 are hanging over the shares, but they are unfounded. The worst-case scenario is that it will be frozen. | 192p/154p 174p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Abcam (ABC)
Aim |
Investors Chronicle | Despite progress at the medical proteins producer, its revenues look too heavily exposed to under-pressure government spending and, as such, the rating looks too high. Sell. | 424p/317p 411p |
|
Ashmore (ASHM)
Asset manager |
Investors Chronicle | The emerging-markets asset manager delivered solid results, despite tough trading conditions. However, volatile markets are hurting returns and the p/e of 14 looks too high. | 413p/300p 337p |
|
Oxford Instruments (OXIG)
High technology tools |
The Mail on Sunday | Shares in Oxford Instruments, which makes highly technical tools for industry and research, have increased sevenfold since December 2007. Time to take profits and sell half your holding. | 1,398p/699.5p 1,334p |
|
Metminco (MNC)
Aim |
Investors Chronicle | The copper explorer is running out of money. It also faces technical difficulties in extracting the low-grade resource in its Los Calatos mine, which may increase its costs. Sell. | 16pp/4.5p 5.75p |
|
SQS Software Quality (SQS)
Aim |
Shares | Shares in the software testing specialist have had a stellar run this year and recent results show earnings quality has improved. But with the rating increasing, it’s time to take profits. | 235p/146p 224.5p |
| * 52-week high/low | |||