MoneyWeek’s comprehensive roundup of this week’s share tips from the rest of the UK press.
Three to buy
BHP Billiton
Shares
BHP has been the worst performer amongst the FTSE 100’s diversified miners so far this year. But the business is back in analysts’ good books after management announced the sale of its underperforming US shale business and lower than expected net debt. It now looks to be in a strong position going forward, while its shareholders should enjoy a “rising stream of dividends” over the coming years. 1,478p
QinetiQ
The Sunday Telegraph
Shares in the defence contractor have fallen by nearly a third since May after a trading update showed clients were delaying orders. There is mounting uncertainty about the outlook for government spending, but the firm is seeking more international business and has a strong balance sheet. The shares now trade at a discount to defence peers in Europe. 225.75p
Randgold Resources
The Mail on Sunday
Geopolitical tensions have sent the gold price soaring and Randgold, the largest UK-listed goldminer, is trading at an “eye-watering” price. Yet the firm is still the best choice for investors looking for a solid gold stock, boasting an “enviable reputation”. 8,125p
Three to sell
Ashmore
The Times
The emerging-markets investment manager has been doing better of late, though it could “hardly be otherwise” after the sector hit its nadir at the turn of 2016. Most investors are underweight in emerging markets and in the long-term they look like a good bet. However, the near future looks volatile and Ashmore’s shares do not offer an obvious bargain, with a forward dividend yield below 5%. 340.5p
Atalaya Mining
Investors Chronicle
The price of copper is up once again, and with it the value of this Spanish miner. Management is keeping a tight lid on spending and margins are increasing. If you think we are only at the beginning of a multi-year bull market for copper then these shares are for keeps, but Investors Chronicle tips taking profits on the 79% gain realised on the shares since they tipped them last May. 175p
Pets at Home
The Sunday Times
Pets at Home has been on a bold expansion spree since it was floated by private equity in 2014, and now has almost 450 “superstores” across the UK with plans to hit 500. Yet the business is operating in a cut-throat retail space against the likes of Amazon, forcing management to engage in some heavy discounting. It is unclear how long it can keep sacrificing profits in this way. 189p
And the rest
The Daily Telegraph
Loo-roll maker Accrol is dull, but it yields 5.8% (130p). Property fund Alpha Real Trust is an unsung gem (123.5p).
Investors Chronicle
Aim minnow Europa Oil & Gas has vast but speculative prospects in the Irish Atlantic (5.75p). Take a punt on digital growth at gambling firm Ladbrokes Coral (116p). Marketing services firm Communisis looks cheap and offers a 5.2% yield (56p). Retail is having a tough time, but Card Factory offers dependable growth and income (337p). Buy into the inflation-linked income on offer from HICL Infrastructure (163p).
Shares
Teleradiology firm Medica should benefit from a shortage of radiologists (219.25p). Automotive leasing and retail group Marshall Motor looks compelling value (162p). Buy into Finsbury Food’s tasty growth story (109p). Infrastructure engineer Hill & Smith offers excellent dividend growth (1,288p). Trading is strong at jewellery retailer-to-pawnbroker Ramsdens – it’s “a great stock” (168.5p).
The Times
Infrastructure fund International Public Partnerships is a solid income play (163.75p). Software group Micro Focus looks like a bargain (2,336p). Insurance technology provider Charles Taylor has good growth prospects (240p). Buy industrial software firm Aveva following the tie-up with Schneider Electric (2,414p). Sell corporate administration firm Sanne – it’s growing fast but is dear (771p). Take profits in IT security firm Sophos for the same reason (521.5p).
IPO watch
Rovio Entertainment, the company behind the Angry Birds video-game franchise, is planning an initial public offering (IPO) in Helsinki after its move into films and merchandise delivered a significant boost to revenues. The Finnish mobile games and entertainment group could go public as soon as next month at a valuation of around $2bn. Rovio would raise around €30m from the sale of new shares, while existing shareholders, including majority backer Kaj Hed, who owns about 70% of the business and is the father of co-founder and former chief executive Mikael Hed, would also sell part of their stakes. Last month, the firm reported second-quarter revenue growth of 94% to €86.2m, with the games business increasing sales 65% to €61.3m.
A French view
Prodways – a specialist in professional 3D printing technology – showed solid progress in its first set of results since its IPO, says Investir. Sales were up by 18.2% year-on-year to €14.6m, while the net loss was cut by almost €2m to €2.9m. Over the last few months, Prodways has made two acquisitions that should add €14m to full-year sales, while new product launches in the medical and aeronautical sectors will also boost organic growth. Operating profit should reach break-even levels in the fourth quarter of this year. The firm, which is a spin-off from Groupe Gorgé, a family-run industrial firm, raised fresh capital to fund its growth at the time of the IPO in May. It now has net cash of €49.3m on hand. The shares, now at €5.50, are a speculative buy, says Investir, with a target of €7.