| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Avacta (AVCT) Aim |
Investors Chronicle | The pharmaceutical research firm has managed to survive falling research budgets across the sector. Improved sales of its Optim research machine boosted product sales by 59%. | 0.75p 1p/0.5p* |
|
Booker (BOK)
Food & drug retailers |
Investors Chronicle | Cash and carry operator Booker should benefit from the acquisition of its rival, Makro. More growth will come from the online business where sales are up 10.7% this year to £332m. | 96.5p 98.5p/69.5p |
|
BP (BP)
Oil & gas producers |
Shares | BP has finally managed to get rid of its troublesome Russian joint venture. Its deal with oil giant Rosneft gives it a huge wedge of new reserves and $12.3bn of cash. “Buy”. | 441p 504.5p/392p |
|
BP Marsh (BPM) General financial |
Investors Chronicle | The insurer will soon benefit from some shrewd past investments. It owns 13% of Hyperion, a UK insurer that could float on the stockmarket this year. If it gets away, BP Marsh will cash in. | 87p 98.5p/86p |
|
Chesnara (CSN)
General financial |
The Mail on Sunday | Life insurer Chesnara’s name is an anagram of ‘earn cash’ and the company, which recently bought two firms, has lived up to this in its generous dividend payments. Buy for the yield. | 191p 210p/155p |
|
Development Securities (DSC) Real estate |
Investors Chronicle | Development profits at the real estate group are gathering pace and many of its projects are beginning to come to fruition. What’s more, the shares trade on a 34% discount to book value. | 165p 199p/115p |
|
Devro (DVO) Food producers |
Shares | Glasgow-based sausage-skin maker Devro is expected to grow sales by 7% to £243.6m in 2012. Longer term it should benefit from its new premium product made from sheep gut. | 322p 341.35p/246p |
|
Energy Assets (EAS) Aim |
Shares | The gas meter installer recently bought the UK metering business of Gazprom, a Russian energy giant. This move gives the £50m firm access to 60,000 new customers. | 185p 205p/163.5p |
|
E-Therapeutics (ETX) Aim |
Investors Chronicle | E-Therapeutics is currently trialling a brain cancer drug and depression remedy in the huge US market. Last year it raised £21m, which should give it enough cash to last until mid 2014. | 37.5p 46.5p/25p |
|
Experian (EXPN)
Support services |
The Times | The credit-checking agency has taken a $1.5bn stake in a Brazilian rival. Combined with its $400m Colombian operation, it can now reach 60% of the Latin American population. | 1,073p 1,087p/774p |
|
Hargreaves Services (HSP)
Support services |
Investors Chronicle | Shares in Hargreaves fell when it reported problems at its only coal mine. It now trades on a price/earnings (p/e) ratio of five – a great price, given most of its profits come from trading coal. | 723p 1,278p/530p |
|
Ideagen (IDEA)
Aim |
Shares | The £15m compliance software supplier is benefiting as more businesses seek to automate audit trails in their organisations. On a p/e of 12, it’s a cheap bet on rising red tape. | 19p 20.25p/14.5p |
|
Inchcape (INCH) General retail |
The Daily Telegraph | The international luxury car dealer managed to boost sales by 4% in the third quarter to £1.5bn. It’s is also in good financial shape, with £190m in cash available for acquisitions. | 393.5p 418.25p/284p |
|
Laird (LRD) Electronic equipment |
The Times | Around 16% of the electronic components maker’s revenues are from Apple, which means it’s gained from the recent release of the iPhone 5. On a p/e of under 12, the shares are good value. | 216.5p 244p/128.5p |
|
Petrofac (PFC) Oil equipment |
Shares | The oil services firm has set itself the ambitious target of doubling 2010 net income by 2015. With a current order backlog standing at $9.4bn, it looks well on the way to achieving that. | 1,579p 1,772p/1,273p |
|
Rolls-Royce (RR) Aerospace & defence |
The Times | Rolls-Royce continues to push out a stream of high-quality contract wins. The latest deal to supply engines for 73 US Navy hovercrafts is one reason why the shares are up 14% this year. | 861.5p 890p/657p |
|
Speedy Hire (SDY) Support services |
Shares | Speedy Hire is benefiting from a pick-up in activity in the Middle East. A recent £50m Abu Dhabi contract was just the start and pre-tax profits should double between 2012 and 2015. | 31.75p 33p/18.5p |
|
Tarsus Group (TRS) Media |
The Mail on Sunday | Exhibitions provider Tarsus runs 80 business exhibitions a year worldwide. Shares in the firm should move higher as exposure to emerging markets boosts profits. Buy for the 4% yield. | 187p 195p/126p |
|
Unilever (ULVR) Food producers |
The Daily Telegraph | Unilever’s concerted push towards emerging markets is paying off. Emerging-market sales were up 12% in the third quarter, while overall group sales rose 5.9%. | 2332.5p 2,346p/1,977p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
African Barrick Gold (ABG)
Mining |
The Daily Telegraph | The African gold miner has missed production deadlines yet again, with third-quarter profits down by more than 70%. Disappointing investors is becoming something of a habit. “Sell.” | 465p 569p/309.75p |
|
Electrocomponents (ECM)
Support services |
Shares | Electrocomponents is due to announce its half-year results. But weak economic data and poor results from some of its peers suggest that the company’s figures will disappoint. | 210.25p 263p/187.5p |
|
Hays (HAS)
Support services |
Investors Chronicle | With unemployment hovering at around 8%, it’s little surprise the recruiter is struggling. UK fees fell 9% in the first quarter. Things aren’t much better in Asia either, with fees down 8%. | 81p 93.5p/59p |
|
Home Retail Group (HOME) General retailers |
The Daily Telegraph | The Argos owner has unveiled a new plan to return the chain to profit. It’s pleased investors and pushed shares up 60%, leaving the shares looking very expensive on a 2013 p/e of 18. | 111.5p 123p/69.25p |
|
Mulberry (MUL)
General retailers |
The Daily Telegraph | The handbag maker is discovering first-hand what a fickle business fashion can be. Shares have dropped around 30% so far this year, but the firm still looks too pricey on a 2013 p/e of 22. | 970.5p 2,472p/969p |
|
Premier Foods (PFD) Food producers |
The Times | The food producer has cut costs by £40m and identified £20m of more cuts to come. That’s impressive, but it remains in a tough market with more than £1bn of debt on its books. | 107p 180p/33p |
| * 52-week high/low | |||