| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Avon Rubber (AVON)
Engineering |
Shares | The rubber products manufacturer boasts a strong order book from the defence industry, a fistful of long-term contracts and is growing its dairy business. Results should be strong. | 316.5p 330p/257.75p* |
|
BG Group (BG) Oil and gas |
The Daily Telegraph | Negative news on 2013 production hit the shares recently, but it looks overdone. The share-price fall could re-ignite bid interest, while projects in Brazil and Australia could boost profits. | 1,147.5p 1,554p/1,050p |
|
BT Group (BT/A)
Telecoms |
The Daily Telegraph | BT’s recent results were better than expected and the shares have rallied. Revenues will pick up in the second half, BT Vision subscribers are up and the dividend has been hiked by 10%. | 227p 239.75p/174.5p |
|
Cambria Automobiles (CAMB) Aim |
Shares | Improving conditions in the car market should boost Cambria’s results. With its strong balance sheet, it could also make acquisitions. Buy on a price/earnings (p/e) ratio of just 6.8. | 17.5p 30p/13p |
|
Croda (CRDA) Chemicals |
The Times | Face cream maker Croda has seen its shares slide since reporting weaker-than-expected third-quarter results. But sales are improving, debt is low and cash generation remains strong. | 2,147p 2,503p/1,618p |
|
Debenhams (DEB)
General retailers |
Investors Chronicle | Debenhams is weathering the retail storm well, with like-for-like pre-tax profits up 4.2% for the full year. Higher sales from refurbished stores contributed and cash generation is strong. | 115p 118p/56p |
|
EKF Diagnostics (EKF)
Aim |
Shares | The former East German company based in Cardiff, which makes blood analysis machines, is due to unveil its maiden profits. Product innovation is expected to boost growth. Buy. | 31.5p 35.75p/21.25p |
|
Faroe Petroleum (FPM) Aim |
Shares | The oil explorer has picked up seven new drilling licences in the North Sea. Results are also due to be announced from the North Uist well being drilled with BP. Buy ahead of this. | 151p 179p/132.25p |
|
F&C Asset Mgm’t (FCAM) General financial |
The Times | The turnaround at F&C has been slow and £3.7bn of mandates were lost in the third quarter. But £401m worth were won, cost cuts are complete and the dividend could be hiked next year. | 100p 103p/59.5p |
|
Imperial Tobacco (IMT)
Aim |
The Daily Telegraph | The global tobacco giant was hit by a £1.2bn writedown in its Spanish business and sales volumes are falling, so it is concentrating on its core premium brands. Buy for income. | 2,370p 2,629p/2,207p |
|
Ithaca Energy (IAE)
Aim |
The Times | The North Sea is enjoying an oil revival and Ithaca, which won exploration licences last week and is the “pick of the North Sea oil plays”, should benefit. It is also a possible bid target. | 125p 212p/90.5p |
|
Maple Energy (MPLE) Aim |
Investors Chronicle | Strong demand for ethanol should benefit the Peru-based producer, which has commissioned one of the world’s lowest-cost plants. Debt levels are high, but its oil operation is profitable. | 67p 88p/60p |
|
Mytrah Energy (MYT)
Aim |
The Mail on Sunday | The second-biggest independent wind-farm operator in India has contracts to sell electricity for the next 20 years. Mytrah is well funded and profits are expected to soar. Buy. | 74.5p 126p/45p |
|
Perform (PER) Media |
Shares | Use a lull in activity for this online sports content provider to buy the shares. Third-quarter advertising figures fell, but this is a seasonable blip due to the timing of sports tournaments. | 419p 451.5p/188.75p |
|
Paragon Group (PAG)
General financial |
Investors Chronicle | The buy-to-let lender is expected to report record full-year profits in November and recently completed a £200m securitisation programme, yet the shares trade on a p/e of just ten. Buy. | 242p 256.8p/150.5p |
|
Royal Dutch Shell (RDSB)
Oil and gas |
The Daily Telegraph | Shell has ambitious plans to grow production, which will increase capital expenditure, but its shares remain a buy due to its strong cash flow and dividend prospects. Buy for income. | 2,241.5p 2,499p/2,020p |
|
Scapa (SCPA)
Aim |
Shares | The acquisition last year of Webtec has boosted margins at the adhesive specialist, as well as its position in the medical sector. Upcoming results later this month should be impressive. | 65.5p 71p/46p |
|
Stobart (STOB)
Industrial transportation |
Investors Chronicle | The trucking group’s results were hit by legislative delays and costs, but trading is solid. It runs Southend Airport, which is booming, and major contracts will boost business. | 114p 140p/104p |
|
Sutton Harbour (SUH)
Aim |
Investors Chronicle | Shares in the owner of Plymouth’s Sutton Harbour trade far below their book value of 43p a share. Its fish market is performing well and the Millbay Marina has development potential. | 28p 30p/18p |
|
UBS (VX: USBN)
Banks |
Investors Chronicle | The Swiss bank made a loss in the third quarter, but this was due to a goodwill impairment charge. Its investment banking activities are to be scaled back and it looks well placed. Buy. | SFr12.60 SFr14.70/SFr9.68 |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Amlin (AML)
Non-life assurers |
Shares | Along with Beazley and Lancashire, Amlin is among the insurers most exposed to catastrophe insurance and hence the fall out from Hurricane Sandy. Sell ahead of the third-quarter results. | 408p 477p/282p |
|
Arm Holdings (ARM)
Technology |
The Independent | Shares in the chipmaker, which supplies Apple’s iPhones, have had a great run, but trade on a 2012 rating of almost 47 times. The future looks choppier, so take some profits. | 665.5p 702p/463.5p |
|
Capita (CPI)
Support services |
Investors Chronicle | The premium rating that the outsourcing specialist’s shares have enjoyed is under pressure from falling profit margins. Outsourcing is also under the microscope. Sell. | 726p 788p/600p |
|
HaloSource (HALO)
Aim |
The Mail on Sunday | The US-based firm has come up with a new way to purify water using bromine and recently signed a deal with Tupperware. The shares have had a good run – time to bank some profits. | 34.25p 60p/19.5p |
|
Lonmin (LMI)
Mining |
The Daily Telegraph | The conglomerate has been forced to raise £497m in a fully underwritten rights issue following wild-cat strikes at its South African platinum mine. Problems there continue. Avoid. | 513p 1,142p/472.25p |
| * 52-week high/low | |||