| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Ashmore (ASHM)
Asset management |
The Times | The emerging-markets investment manager recently left the FTSE 100, but could soon return. A recent trading update was rosier, with assets under management up. Buy on weakness. | 406p/300.25p* 362.5p |
|
BAE Systems (BA)
Aerospace and defence |
The Independent | The EADS merger was poorly conceived. However, guru Neil Woodford has built up a 10% stake in the defence contractor. The shares should recover, but change is needed at the top. | 367.5p/249p 328.5p |
|
BHP Billiton (BLT)
Resources |
The Daily Telegraph | The world’s biggest mining company may be hit by slowing demand in China, but growth there will continue and its recent A$1bn Australian bond issue was oversubscribed. Buy. | 2,237.5p/1,650p 1,933.5p |
|
Diageo (DGE) Beverages |
The Times | While the consumption of high-value spirits brands is falling in Europe, it is rising in Brazil, Mexico and India. The Jose Cuervo and United Spirits deals will leave Diageo well positioned. | 1,808p/1,259p 1,780.5p |
|
F&C Asset Mgmt (FCAM)
Asset management |
Shares | Turnaround specialist Edward Bramson is successfully cutting costs at F&C, with underlying earnings per share up 11% at the half year. On a rating of ten for 2013, the shares are a buy. | 99p/59.5p 95.5p |
|
Inland Homes (INL)
Aim |
Investors Chronicle | Brownfield developer Inland had a slow year, selling just nine houses and no land. Luckily, business is now picking up, with 44 plots sold. It’s attractive on a 30% discount to book value. | 21.5p/14.75p 19p |
|
Imperial Tobacco (IMT)
Tobacco |
Shares | Concerns over regulation plain packaging for tobacco being introduced in Australia have hit the shares, but this is priced in. The first quarter update in February could spark a re-rating. | 2,629p/2,147p 2,280p |
|
Interior Services (ISG)
Support services |
Investors Chronicle | The construction group has had its share of bad times, but it is cutting costs, winning new contracts and could benefit from a cyclical recovery. Meanwhile, enjoy the 7% dividend yield. | 185p/107p 143p |
|
Inmarsat (ISAT) Telecoms |
The Times | News from the satellite communications firm’s investor day was encouraging, with two new contract wins. It’s worth locking away for future growth of 8%-12%. | 610.5p/365p 571p |
|
Ithaca Energy (IAE) Resources |
The Times | Oil explorer Ithaca boasts a strong balance sheet, an ability to do deals – recently signing two more – and a more measured approach than some of its peers. Could it attract another bid? | 212p/90.5p 121.25p |
|
Jupiter Energy (JPRL)
Aim |
Shares | Shares in Kazakhstan-focused oil firm Jupiter have had a good run, but still trade at a 60% discount to net asset value (NAV). It could see an increase in its proved and probable reserves. | 50.25p/25p 38.5p |
|
Mitie (MTO) Support services |
Investors Chronicle | The outsourced property manager has struck a £111m deal to buy Enara, which will see it entering the health and social-care market. If properly integrated, this should be a good fit. | 301.25p/195p 233.5p |
|
Mondi (MNDI) Forestry and paper |
Investors Chronicle | The spin-out from Anglo American is benefiting from smart acquisitions in packaging and emerging markets. It enjoys a low-cost production base and recently raised the dividend. Buy. | 653p/407p 651p |
|
Plexus (POS)
Aim |
Investors Chronicle | Plexus, which makes safer wellhead equipment for the oil and gas industry, is benefiting from the BP disaster as regulators are pushing firms to adopt its technology. It’s a speculative buy. | 175p/68p 172p |
|
Quintain (QED)
Real estate |
Investors Chronicle | A new joint venture with Hong Kong partner Knight Dragon to redevelop Greenwich peninsula looks set to reverse Quintain’s fortunes. The shares trade way below book value. Buy. | 57p/33p 57p |
|
Rio Tinto (RIO)
Resources |
The Daily Telegraph | Although Rio Tinto has reduced its China growth forecasts to below 8%, things are not as gloomy as they look. China’s stimulus packages are simply a matter of timing. Buy. | 4,029p/2,649p 2,995p |
|
SimiGon (SIM)
Aim |
Shares | The Israeli training specialist supplies the US Airforce with its pilot training software. There could be 60% upside for the shares, trading on a p/e of 8.7, as it expands into other markets. | 22.75p/6.5p 22.25p |
|
Spectris (SXS)
Electronics |
Shares | Shares in Spectris, which makes productivity-aiding instrumentation, trade on a lower rating than its peers, but new acquisitions in Latin America and China could change this. | 1,929p/1,118p 1720p |
|
Yamana Gold (YAU)
Resources |
Shares | Yamana’s shares are often overlooked in the UK because this isn’t its primary listing. But it’s worth a look due to its low operating costs, large asset base and promising projects in Brazil. | 1,230p/815p 1,160p |
|
Yum! Brands (NYSE:YUM) Leisure |
The Times | Luxury brands are suffering falling demand in China, but Yum! Brands is booming. The KFC and Taco Bell franchise operator expects double-digit profit growth in the fourth quarter. | $74.44/$50.60 $69.45 |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Aggreko (AGK)
Support services |
The Times | Broker HSBC has downgraded its rating of the power supply specialist due to concerns about its end markets. The shares are still up 18% since July, so now may be the time to take profits. | 2,415p/1,621p 2,253p |
|
Direct Line (DLG)
Insurance |
Shares | Investors should approach Direct Line’s float with caution. Owner RBS has to dispose of 51% of its holding in 2013 and the rest a year later, causing a major share overhang. Sell. | 195p/175p 175p |
|
Michael Page (MPI)
Recruitment |
The Daily Telegraph | Profits are falling at the IT recruiter, which is being hit by slowdowns in Europe and the Middle East, and so are its shares. Considering the current economic gloom, they are best avoided. | 505p/313p 357p |
|
MoneySupermarket.com (MONY)
Media |
Investors Chronicle | The price comparison website is still growing solidly, but faces major competition from Google in markets that generate almost 70% of its revenues. A de-rating could follow. Sell. | 147p/91p 141p |
|
Rangers (n/a) Aim |
The Daily Telegraph | Rangers collapsed in June and was bought out by a consortium headed by Charles Green. Football clubs tend to be a poor investment and Rangers is a prime example. Avoid the float. | Yet to float |
| * 52-week high/low | |||