| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Asian Plantations (PALM)
Aim |
Investors Chronicle | The Malaysian palm oil producer is purchasing a 7,000 hectare parcel of land next to its other plantations. The fall in the palm oil price has hit the shares, but they are still worth buying. | 286.5p/207p* 230p |
|
Aveva (AVV) Technology |
Shares | Shares in the computer-aided design specialist could benefit from the launch of a new design system suite. Upgrades to existing tools could generate £90m in annual revenues. | 2,009p/1,297p 1,980p |
|
Central Asia Metals (CAML)
Aim |
Shares | The Kazakhstan-based copper producer could see its shares double if its growth plans are successful. Production guidance was raised by 15% last week, boosted by its Kounrad project. | 107p/54p 100p |
|
CVS (CVSG)
Aim |
Investors Chronicle | The veterinary practice operator faces competition from internet-based pharmacies, but is generating stable revenues thanks to its loyalty schemes. Free cash flow looks healthy. Buy. | 154p/95p 154p |
|
Dunelm Mill (DNLM) General retailer |
The Times | Retailers are struggling, but Dunelm grew market share to 6.9% this year. On a 2013 price-to-earnings (p/e) ratio of 14.6, the shares are a retail safe haven. | 697p/420p 673p |
|
Finsbury (FIF)
Aim |
Investors Chronicle | Food producer Finsbury is making good headway in clearing its debts, while also generating impressive organic growth this year. At these levels it looks cheap. It’s a speculative buy. | 37p/21p 37p |
|
Greencore (GNC)
Food producers |
Shares | The convenience food firm is paying off its debts, seeing good growth in Britain and America and taking market share in Britain. A p/e of 5.4 looks too low, and the 5.1% yield is attractive. | 88.5p/48.75p 80p |
|
GKN (GKN)
Engineering |
Shares | Interim figures due in October could prompt a re-rating of GKN’s shares. Car production is falling, but an increased exposure to the aerospace sector should benefit the shares. Buy. | 242p/164.75p 216.5p |
|
Halfords (HFD)
General retailer |
The Daily Telegraph | The growing profile of cycling following the Olympics is boosting sales at the bicycle retailer. The car maintenance side is also growing. Buy for the chunky 7.7% yield and 2013 p/e of 10.8. | 351.5p/186.75p 303.5p |
|
Halfords (HVN)
Support services |
Investors Chronicle | The trend for firms to use temporary labour in the downturn proved positive for the recruiter, with interim operating profits up 11%. It’s on a p/e of nine and the 4.6% yield is attractive. | 71p/47p 60p |
|
John Laing Infrastructure Fund (JLIF)
Investment companies |
The Daily Telegraph | The JLIF fund recently raised £60m via a share placing that was oversubscribed. The funds will buy two new projects and a stake in a hospital project. The 5.5% yield is also generous. | 111p/104.75p 107.5p |
|
London Stock Exchange (LSE)
Banking and finance |
The Daily Telegraph | Revenues at the LSE may be down due to falling trading volumes, but the future looks bright. Its investment in clearing house LCH.Clearnet is a sensible diversification. Buy. | 1,110p/751p 985p |
|
Parkmead (PMG)
Aim |
Investors Chronicle | The oil and gas producer’s chief executive, Tom Cross, formerly of Dana Petroleum, is a tough negotiator with a reputation for deal-making. This should stand Parkmead in good stead. | 26p/10p 12.5p |
|
Quercus Publishing (QUPP)
Media |
Investors Chronicle | The publisher of Stieg Larsson’s Millennium novels is trying to offset falling revenues from the franchise by pushing digital sales and broadening its range of titles. It’s a long-term buy. | 123p/80p 80p |
|
Snoozebox (ZZZ)
Aim |
Shares | Maiden figures from the moveable hotels firm show the concept has scope beyond the music festival market, with other hotels using their services. It may also pay a dividend next year. | 59p/40p 53.5p |
|
St Ives (SIV) Support services |
The Times | The former publisher of annual reports is moving away from commoditised print and into more profitable areas, such as marketing services. Yet it remains unloved on a p/e of just five. | 96p/67.5p 95.75p |
|
Swallowfield (SWL)
Aim |
Shares | The toiletries and make-up producer could see earnings upgrades at its interims in February. International expansion and new product launches could also boost the shares. | 128p/98.5p 113.5p |
|
Workspace (WKP) Property |
The Times | The group, which provides office space for small businesses in London, recently closed its debut retail bond, raising £57.5m. The shares are a “decent punt” on the London economy. | 293p/210.75p 293p |
|
XP Power (XPP)
Power components |
Shares | Second-half trading improvements, following a fall in profits in the first half, should bolster shares in XP Power. Margins are improving and forward orders should be up over 16%. Buy. | 1,283p/770p 1,010p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
CRH (CRH) Construction |
Investors Chronicle | All is not well at the cement producer. First-half like-for-like sales were flat and European sales down due to poor weather. A p/e of 19 is too high and the dividend could be under threat. Sell. | 1,414p/960p 1,188p |
|
Direct Line (DLG)
Insurance |
The Mail on Sunday | There is no rush to buy shares in insurer Direct Line. Growth is hard to come by in the motor insurance market, while the Competition Commission is launching an inquiry into it. Avoid. | Float price 160p-195p |
|
Evraz (EVR) Resources |
The Times | A complex $800m deal to take control of a coking coal supplier will further strengthen the position of majority shareholders in Evraz and worry minority investors. Avoid for now. | 465.5p/206.75p 241.5p |
|
First Group (FGP)
Transport |
The Independent | Shares in the transport giant fell 20% this week after it was stripped of the West Coast rail contract. Falling US margins and a possible risk to the dividend are even more worrying. Sell. | 350p/184.75p 200.5p |
|
Sarantel (SLG)
Technology |
The Times | The mobile-phone antennae maker is a case study in the poor commercialisation of promising technology. The shares have been a disappointment since the 2005 float and are best avoided. | 1p/0.25p 0.25p |
|
Victrex (VCT)
Chemicals |
The Times | Shares in the producer of high-performance plastic PEEK have had a good run and it’s time to take profits. Demand for PEEK can be volatile and the global slowdown could affect sales. | 1,526p/1,053p 1,380p |
| * 52-week high/low | |||