| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Amec (AMEC)
Industrial engineering |
The Daily Telegraph | The engineer’s order book just got a lot healthier after winning a $528m contract in Kuwait. A focus on high-margin infrastructure is sound. On a forward p/e of 11.6 and yield of 3.6%, buy. | 1,057p 1,189p/858.5p* |
|
Assura (AGR)
Healthcare equipment & services |
The Daily Telegraph | The latest half-year results show that the health property group managed to turn a £26.5m loss into a £6.5m profit. Longe -term it should benefit from the government’s health reforms. | 34.5p 35p/27.5p |
|
Aviva (AV)
Life insurance |
Investors Chronicle | The insurer’s shareholders have had a miserable few years, but things are looking up. The new CEO is cutting non-core businesses, while cost cutting is expected to save £250m in 2012. | 345p 385p/251p |
|
Betfair (BET) Travel & leisure |
Investors Chronicle | A disastrous foray into forex trading cost the online gambler £35m for no tangible return. Growth has stalled and the share price has suffered. Buy ahead of the turnaround. | 752p 905p/688p |
|
BHP (BLT) Mining |
The Daily Telegraph | Sentiment around commodities is far too gloomy and this miner’s diversity will be the key to its future success. A forward p/e of 10.2, a yield of 4% and lots of free cash flow make it a buy. |
1,951p 2,237p/1,650p |
|
Gemfields (GEM)
Mining |
Shares | The miner is benefiting from it’s alliance with jeweller Fabergé. Thanks to this partnership its stones sold for 30% more this year than in 2011. It now plans to buy Fabergé outright. Buy. | 32p 43.5p/20.25p |
|
Imagination Technologies (IMG) Technology hardware & equipment |
Shares | The computer chip-maker has launched a £60m bid for rival MIPS Technologies. If successful the bid would help Imagination in its battle against larger competitors, such as Intel and ARM. | 427p 717p/406p |
|
Ithaca (IAE)
Oil & gas producers |
Shares | The Aberdeen-based explorer plans quadruple daily production to 16,000 barrels per day by 2014 and already has the cash needed to do so. Despite this it’s undervalued by the market. | 127p 202.5p/92.25p |
|
Invensys (ISYS) Software & computer services |
The Times | The rail technology firm has bounced since the £1.7bn sale of its communications division. That has turned it into a solid software and controls provider with plenty of cash in the bank. | 305p 318.25p/181.5p |
|
Kenmare Resources (KMR)
ISEQ |
The Daily Telegraph | Shares in the titanium producer fell when it was announced that output would drop 10% this year. But the setback is temporary. Expansion plans will boost output by 50% in 2013. | 31p 73p/38p |
|
Maple Energy (MPLE)
Oil & gas producers |
Investors Chronicle | 2012 output at the Peru-based ethanol producer will be 300,000 tonnes less than the 900,000 originally forecast. But with maintenance problems now solved, expect big profits in 2013. | 72p 86.5p/63.5p |
|
New Britain Palm Oil (NBPO) Food processors & producers |
Shares | The Papua New Guinea-based palm oil producer is one of the world’s largest. The shares have been dragged down by a falling palm oil price, but now the company looks due a rebound. | 495p 900p/482.5p |
|
Omega Diagnostics (ODX)
Health care equipment & services |
Shares | The medical device manufacturer’s recent results were terrible. Profits fell 12% while sales remained flat. However, the launch of its new HIV-testing machine could turn things around. | 14p 18p/9.75p |
|
Real Estate Credit Investments (RECI)
Financial services |
Investors Chronicle | So far this listed portfolio of mortgage-backed securities has delivered 41% of total returns. But on a discount to net asset value of 24% and yielding 7.7% it’s still not too late to buy in. | 104p 113.5p/79.5p |
|
Rio Tinto (RIO)
Mining |
The Daily Telegraph | The giant miner will cut £3.1bn of costs by 2014, yet it already has low production costs. A recent sell-off looks overdone and it now trades 23% below analysts’ consensus price target. | 3,223p
4,029p/2,649p |
|
Sirius Minerals (SXX)
Mining |
The Times | The potash mine developer has just cut £1bn off the expected costs for it’s new facility. The £300m cap still needs a strategic investor to start production by 2016, but worth a punt. | 21.75p 29.25p/13p |
|
SSE (SSE) Electricity |
The Sunday Times | Britain’s second-biggest energy supplier has shied away from big bets on generation, instead spending £325m on transmission. It’s a shrewd move given the uncertainty over energy reforms. | 1,425p 1,467p/1,200p |
|
Standard Chartered (STAN)
Banks |
The Sunday Times | The bank is battling US regulators over alleged money laundering in Iran. It paid a $340m fine and another penalty is likely. But the 7% share price drop is a temporary buying opportunity. | 1,455p 1,664p/1,092p |
|
Tangiers Petroleum (TPET)
Aim |
Investors Chronicle | The explorer looks set to benefit from its exposure to offshore Morocco, “oil’s next big frontier play”. The firm’s concessions may have 758m barrels of oil. Buy now before drilling starts. | 30p 46p/19p |
|
Ted Baker (TED)
General retailer |
Shares | The fashion brand had a great third quarter with sales up 21% against last year. Internet sales stole the show, up 80%. On a p/e of 18 the £419m cap isn’t cheap but there’s more to come. | 1,001p 1,017p/633p |
|
Zambeef Products (ZAM)
Food producers |
Investors Chronicle | Operating profits at the African farm group are up 46% over the last year. Further improvement is likely as an expensive investment programme is largely completed. Buy. | 44p 55p/27.5p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
McBride (MCB)
Household goods & home construction |
Shares | The home goods-maker is suffering from higher oil prices and volatility in the Middle East. It’s contract work for branded names is also drying up and February’s numbers won’t be pretty. | 137.5p 140p/105p |
|
MDM Engineering (MDM) Industrial engineering |
Investors Chronicle | The Africa-focused mining engineer has been targeted by Australian rival Sedgman. A share price of 181p is a 23% premium to its one-month trading average. Take this “easy exit”. | 181p 181p/93.5p |
|
Pennon (PNN)
Gas, water & multiutilities |
Investors Chronicle | The water and waste utilty is suffering from falling prices for recycled materials. Profits in the water business were up 10% to £142m in 2012, but regulators’ attitudes could harden. Sell. | 620p 796p/598p |
|
Victrex (VCT) Chemicals |
Shares | The plastics specialist is curently a market darling at the moment, with a 2012 p/e of 18.5, but the optimism won’t last. Next week’s results will reveal it’s suffering from weak European demand. | 1,539p 1,545p/1,070p |
| * 52-week high/low | |||