| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Aggreko (AGK) Support services |
The Daily Telegraph | Recent figures from the generator provider showed that exchange rates and bad debts will cut full-year profits by 2.5%, but long-term prospects look good as global energy demands rise. | 2,400p/1,676p* 2,076p |
|
Alternative Networks (AN) Aim |
Money Observer | Since its 2005 Aim listing, the bespoke telecoms firm has grown its profits steadily. This year they hit a record £14.22m, up from £9.36m, and analysts expect more next year. | 300p/202.5p 245p |
|
Antrim Energy (AEN) Aim |
Shares | The oil and gas explorer is about to start drilling in the North Sea, while another asset will start producing soon. If it strikes it lucky, shares in the £97.7m firm could rocket. “Buy.” | 74.96/30.5p 53p |
|
Avon Rubber (AVON) Industrial engineering |
Investors Chronicle | The firm’s products are used in everything from gas masks to milking tubes for dairy farms. It’s great value on a price/earnings (p/e) ratio of ten. “Buy.” | 325p/264p 312p |
|
Bunzl (BNZL) Support services |
The Times | The outsourcer provides plastic cleaning and cooking items for companies. Costs are rising, but sales have grown at 4% a year since 2004. | 1,167p/778.5p 1,038p |
|
Carillion (CLLN) Support services |
Investors Chronicle | Things are looking up for the builder. The government has restarted construction projects which should support the order book, while Middle East revenue will hit £1bn by 2015. | 367p/234p 293p |
|
Carnival (CCL) Tourism and leisure |
Money Observer | Profits at the giant cruise line operator may fall to £923m from £1,216m last year. That might not seem good, but it’s a lot better than investors feared when the Costa Concordia sank. | 2,480p/1,841p 2,367p |
|
Caretech Health (CTH) Healthcare equipment |
Money Observer | Shares in the care-home operator slumped when its rival, Southern Cross, went bust last year. But since then the firm’s profits have doubled and shares now look very cheap on a p/e of 6.4 | 181.5p/75p 167p |
|
Cranswick (CWK) Food producers |
Shares | The sausage and bacon maker’s shares dropped as it struggled with high pig prices. But sales have grown 5% this year and prospects look good for the future. A forward p/e of ten is fair. | 858p/678p 753p |
|
Games Workshop (GAW) Leisure goods |
Shares | The fantasy toys maker has a strong physical presence and is now growing its internet business, which still only accounts for 10% of sales. The 6.7% yield is also attractive. | 720.5p/405p 672.5p |
|
GKN (GKN) Automobiles and parts |
Investors Chronicle | The car and civil aviation component maker’s shares have fallen 10% on weak European demand. But with orders elsewhere strong, pre-tax profits should still hit £470m this year. | 237p/166p 205p |
|
Go-Ahead Group (GOG) Travel and leisure |
The Daily Telegraph | The bus operator’s rail plans are now on hold and it has unveiled plans to grow profits organically by 40% to £100m by 2016. The shares yield 5.94%, making them a buy for income. | 7,745p/1,086p 1,412p |
|
Innovation Group (TIG) Software |
Money Observer | The specialist software provider has managed to double revenues over the last six years. Now, thanks to international expansion, profits could reach £22m this year. Buy for growth. | 23p/16.75p 21.5p |
|
Ithaca Energy (IAE) Oil and gas producers |
Investors Chronicle | The North Sea focused oil and gas producer is set to boost output and cash flow as oil starts flowing from new fields coming online, but this isn’t reflected in its cheap 2013 p/e of three. | 202.50p/92.25p 120p |
|
Optos (OPTS) Healthcare equipment |
Shares | The retinal diagnostics specialist has boosted sales by 32% this year. Now, with the US market accounting for 80% of sales of its new Daytona scanning machine, expect more growth. | 279.25p/160.5p 209.5p |
|
Randgold Resources (RRS) Mining |
The Daily Telegraph | The Africa-focused gold miner expects to produce 845,000 ounces of gold this year, up from 700,000 last year. The rise in earnings should bring the p/e down to 17 in 2013. Buy now. | 7,775p/4,596p 7,745p |
|
Rank Group (RNK) Travel and leisure |
The Times | Rank’s sales rose 5% in the first quarter. It’s wisely investing in its online bookmaker, Blue Square, which enjoyed an 18% sales spike, while its London casinos also look good. | 153p/111p 151p |
|
SABMiller (SAB) Beverages |
The Times | SABMiller’s soft trading update sent the share price tumbling. But investors shouldn’t lose faith. The rumour in the market is that it could be the takeover target of a bigger rival. | 2,629p/868.5p 1,078.5p |
|
Volkswagen AG (VOW) Automobiles and parts |
Investors Chronicle | The world’s most profitable car maker has launched a new cost-saving plan. Another boost for the company should also come from China, where Volkswagen made €2.6bn last year. | 1,556c/1,072c 1,461c |
|
Weir Group (WEIR) Industrial engineering |
Money Observer | Weir Group should benefit from increased natural gas use as it sells equipment for ‘fracking’. Takeover rumours should also provide a further boost to the share price. Buy. | 2,236p/1,397p 1,796p |
|
William Hill (WMH) Travel and leisure |
The Times | The betting firm is looking to snap up one of its rivals and wrest control of a joint venture from its partner. It’s a big gamble but, if successful, the moves could boost profits by 50%. Buy. | 357.5p/183.25p 355.5p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Britvic (BVIC) Beverages |
The Daily Telegraph | Packaging mistakes forced the soft drink maker into a costly £25m product recall. Meanwhile, a slowdown in Europe or China could also hit sales at the company. It’s time to sell. | 196p/135p 147p |
|
Dechra (DPH) Pharmaceuticals |
The Daily Telegraph | The veterinary medicines group is a quality firm in an excellent position. But the good news is priced in, with shares trading at a 40% premium to its peers. Investors should take profits. | 621p/418p 620p |
|
Sunrise Resources (SRES) Mining |
Investors Chronicle | Shares in the diamond explorer have doubled since July, but a discovery seems unlikely. With just £922,000 of working capital left, it’s trading at too big a premium to the value of its assets. | 255p/58p 145p |
|
William Sinclair (SNCL) Household goods |
Investors Chronicle | The compost supplier is having a terrible year. Rain kept customers from their gardens, while flooding has hit peat supplies and pushed up costs. It’s too expensive on a p/e of 17. | 196p/135p 147p |
| * 52-week high/low | |||