| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Amino Tech (AMO) Technology hardware |
Investors Chronicle | Amino Technologies is hiking its dividend by 50% to 3p and expects to raise it by another 15% over the next two years. Trading is strong and, boasting a yield of 5%, the shares are a buy. | 64p 68.5p/38.75p* |
|
Akzo Nobel (AKZO/Euronext) Chemicals |
Investors Chronicle | New chief executive Ton Büchner’s return following an illness has boosted the shares and a turnaround is underway that should deliver €500m of cost savings in the US paints division. | €44.70 €49.07/€33.38 |
|
Anite (AIE) Software |
The Times | Half-year figures from the telecoms testing specialist were encouraging, with margins up at all three divisions and operating profits up 21%. Analysts’ forecasts have also been raised. Buy. | 143p 151p/87.5p |
|
Beacon Hill Resources (BHR) Aim |
Shares | The Mozambique-based coal miner has been a serial disappointer. However, the shares are a speculative buy as a recovery play on new management and ahead of a possible rail contract. | 3p 12p/3p |
|
Betfair (BET) Leisure |
Shares | Regulatory setbacks have hit shares in the online betting firm, but a restructuring is likely to be announced. Management will focus on disposing of underperforming assets. | 735p 905p/688p |
|
Bovis Homes (BVS) Construction |
Investors Chronicle | Bovis’s shares underperformed its peers in 2012, yet trading has been good, average selling prices are up and operating margins are set to hit 13%. The discount looks unjustified. | 554p 555p/392p |
|
Innovation Group (TIG) Outsourcing |
The Times | The insurance industry outsourcer should benefit from the abolition in April of claims referral fees, as well as extreme weather, which boosts claims. It’s an interesting long-term bet. | 22.75p 23.5p/18p |
|
ITE Group (ITE) Exhibitions |
The Times | Exhibition organiser ITE’s purchase of a stake in ABEC gives it a footprint in India. It’s a good long-term bet on a 2012 p/e ratio of 12. | 230p 246.5p/173p |
|
Jupiter Energy (JPRL) Aim |
Shares | Snap up shares in the Kazakhstan-based oil explorer ahead of flow test results from two of its discoveries, an expected increase in production and publication of a new audit of its assets. | 37.5p 50p/25p |
|
May Gurney (MAYG) Support services |
The Daily Telegraph | Shares in May Gurney are recovering nicely following the September profits warning. While profits are down, the order book is healthy at £1.5bn and a 2012 p/e of just 7.3 is too low. Buy. | 177p 301.25p/98p |
|
Micro Focus (MCRO) Software |
The Times | Boring but stable Microfocus has been courted by private-equity suitors and may be again. Its special dividends also look safe, given the ability of the firm to throw off plenty of cash. | 549.5p 598p/365p |
|
Petrofac (PFC) Oil services |
The Daily Telegraph | Petrofac has already unveiled two contract wins worth $1.4bn, but is also bidding on deals worth up to $60bn, due to be announced by the end of next year. Buy on a 2013 p/e of 12.8. | 1,669p 1,784p/1,324p |
|
Purecircle (PURE) Aim |
Shares | Despite regulatory delays, demand for Purecircle’s Stevia sweetener products is growing. New products are due to launch next year and a deal has been signed with Coca-Cola. | 255p 282.5p/70.5p |
|
Reed Elsevier (REL) Media |
Shares | Investors looking to switch out of Pearson should consider Reed. The firms are valued equally by the market, but Reed is twice as profitable. A sale of LexisNexis could also spark a rerating. | 644p 662.5p/466p |
|
RPL Group (RPC) General industrials |
Investors Chronicle | The recent profit warning has hit shares in the plastic packaging specialist, but this is a buying opportunity. Underlying profit margins are improving and a forward p/e of nine is too cheap. | 388p 450p/319p |
|
St Modwen (SMP) Real estate |
Investors Chronicle | As a developer, St Modwen’s shares are fully valued but, as a housebuilder, the shares are worth buying. Its landbank is vast and major London regeneration schemes are forthcoming. | 222p 235p/108.75p |
|
Sirius Minerals (SXX) Mining |
The Times | A United Nations study suggests food production will have to rise by 70% by 2050. Yorkshire potash miner Sirius Minerals could benefit as potash is a common fertiliser. | 22.25p 29.75p/12.75p |
|
Standard Chartered (STAN) Banks |
The Daily Telegraph | The Asian-focused bank’s troubles with the US authorities will soon be settled and, while emerging markets have slowed, Standard is set to unveil its tenth consecutive year of growth. | 1,500.5p 1,664.5p/1,092p |
|
Tangiers Petroleum (TPET) Aim |
Shares | The 24% plunge in the oil explorer’s shares following the farming out of its Moroccan licences looks overblown. Plenty of news flow is due in the next year, making this a buying opportunity. | 24p 46p/18.75p |
|
Tesco (TSCO) General retailers |
The Daily Telegraph | Follow Warren Buffett’s example and “get rich slowly” by buying into Tesco. A recovery will take time, but it is taking decisive action by leaving the US and the yield is an attractive 4.3%. | 337.5p 412p/294.5p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Direct Line (DLG) Non-life insurance |
Investors Chronicle | While the flotation of Direct Line has been a success, its weak trading prospects could wipe out share price gains. The Office of Fair Trading probe is a concern. | 198p 206p/175p |
|
Falklands Oil & Gas (FOGL) Oil and gas explorer |
The Daily Telegraph | Shares in the oil explorer are at rock bottom, but still best avoided. Recent drilling results were disappointing and the company could easily burn through its remaining cash balances. | 30.25p 102.75p/29.25p |
|
Mothercare (MTC) General retailers |
Shares | The mother-and-baby-care retailer is in the early stages of a turnaround, but poor Christmas sales this year could lead to earnings downgrades. Sell ahead of the third-quarter results. | 310.25p 328p/151p |
|
Sage (SGE) Software |
Investors Chronicle | Growth has stalled for the accountancy software firm and, while it still generates plenty of cash, its near-term prospects look lacklustre. A p/e of 15 also looks too pricey. Sell. | 305p 326p/245p |
|
United Utilities (UU/) Utilities |
The Independent | It’s time to take profits in United Utilities and switch into National Grid. United will face pricing pressure from the regulators, while its rival trades on a lower rating and offers a better yield. | 687p 816p/583.5p |
| * 52-week high/low | |||