| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
BowLeven (BLVN)
Oil and gas producers |
Shares | The oil and gas explorer trades on a 60% discount to the value of its discovered reserves in Cameroon. The firm is now looking for partners to help it develop its offshore fields. Buy. | 136p/53.5p* 75.75p |
|
Carnival (CCL)
Travel and leisure |
The Times | The cruise operator has been hit by the slowdown in consumer spending. Yet it’s managed to grow sales by lowering prices and investors will be looking for this to continue. | 2,369p/1,841p 2,284p |
|
Centaur Media (CAU)
Media |
Investors Chronicle | The business publisher has struggled recently as advertising demand fell. But a focus on digital media is now boosting sales. It looks cheap on a 2013 price/earnings (p/e) ratio of seven. | 47p/27p 40.5p |
|
Drax Group (DRX) Electricity |
The Times | The coal-fired power plant operator has reinvented itself by burning cleaner biomass. With a free-standing station that produces 7% of Britain’s power, it is a likely takeover target. | 581.5p/442p 504p |
|
Entertainment One (ETO)
Media |
Investors Chronicle | The film and TV distributor recently bought a Canadian rival and signed a flagship deal with US film studio Dreamworks. The shares are up 347% since November 2009, but are still a buy. | 208.5p/130p 172p |
|
Falkland Oil & Gas (FOGL)
Oil and gas producers |
Investors Chronicle | Shares in the oil and gas explorer took a battering last week following disappointing drilling results. But the “speculative case for the shares remains intact”. | 102.75p/41.75p 74p |
|
Galliford Try (GFRD) Construction |
Daily Mail | The housing market may be subdued, but this builder has had an excellent year. Profits rose 80% to £63m and, thanks to its big development land bank, should hit £72m next year. | 714p/410p 700p |
|
G4S (GFS)
Support services |
The Daily Telegraph | The security firm’s shares have suffered following its Olympics failure, but a new public sector contract has eased fears of a government blacklisting. It’s good value on a p/e of 11.7. | 292p/220p 267p |
|
GKN (GKN)
Automobiles and parts |
Investors Chronicle | In recent years the car parts maker has increased its exposure to aerospace, which now brings in 40% of its profits. The purchase of Volvo’s aerospace division is a game-changer. | 242p/153p 228p |
|
Imperial Tobacco (IMT)
Tobacco |
The Times | Due to tough anti-smoking laws being implemented around the globe, it’s been a difficult time for the tobacco and cigarette vendor. But its sales are solid and its 5% yield looks safe. | 2,595p/2,086p 2,336p |
|
Kier (KIE)
Construction |
Investors Chronicle | The property developer and builder has a healthy £750m pipeline of new projects. A p/e of ten is not too demanding, while the 4.9% yield provides a useful income stream. Buy. | 1,489p/1,089p 1,356p |
|
Lookers (Look) General retailers |
The Daily Telegraph | Shares in the UK-focused car dealership dipped slightly last week as a major shareholder sold a large stake. However, with new car sales up 11%, other investors should pile in. Buy. | 73.5p/48p 99.75p |
|
Mondi (MNDI)
Paper and packaging |
Shares | Higher containerboard prices (up by e50 per tonne in September alone) could mean earnings upgrades for this packaging manufacturer. Revenues could be lifted by 10% in 2013. Buy. | 653.5p/407.25p 616p |
|
NetPlay TV (NPT)
Media |
Shares | The online and TV gambling channel is reaping the rewards of a big marketing push. New customer numbers are up 74%, while revenue rose by a third. The 3% yield is another plus. | 12.375p/8.5p 12p |
|
Ricardo (RCDO) Support services |
The Times | The engineer is benefiting from flagship contracts working on the McLaren F1 car and troop carriers for the US military. A 2013 p/e of 12 is “very reasonable for such a quality stock”. | 391p/304.5p 360p |
|
Software Radio Technology (SRT)
Technology |
Daily Mail | So far the firm’s proprietary ship communication systems have struggled to sell, but new regulations should help boost annual sales to £10m from £6.2m. It’s a share for the brave. | 35p/19.25p 20.5p |
|
Supergroup (SGP)
Personal goods |
Shares | The fashion retailer shrugged off growing pains to post a 20% rise in sales in the first quarter of the year. With European expansion starting to pay off, investors can expect more growth. | 1,072p/264.5p 632p |
|
United Utilities Group (UU)
Utilities |
The Times | The water firm reassured investors with a steady earnings report and its performance in customer service surveys has improved. The dividend, pledged at inflation plus 2%, is a plus. | 730p/589p 730p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Dunelm (DNLM)
General retailers |
Investors Chronicle | These are tough times for a retailer and shares in this homeware vendor look pricey, trading on a p/e of 16.5. That’s a big premium to the sector. Sell. | 685p/391p 644p |
|
Redhall (RHL)
Support services |
Investors Chronicle | The engineer is struggling to win new business and even legacy contracts could come under pressure. Provisions for an ongoing legal dispute are also adding £2m to costs. Sell. | 112.5p/55p 64p |
|
Pace (PIC) Technology |
Shares | Pressure is building for the set-top box maker after it revealed that it failed to fulfill a contract with BT, while supply disruptions cost it £76.9m in the first half of 2012. Sell. | 180p/44p 159.5p |
|
Advanced Computer Software (ASW)
Software |
Shares | The business software provider has performed strongly over the year. However, with the shares now trading on a p/e of 15.3, it now looks too pricey and it’s time to take profits. | 63.75p/38.25p 62.75p |
|
Apple (US: AAPL) IT hardware |
The Daily Telegraph | Apple is a great firm with a popular new product. But for British investors, it’s also a currency risk. The Federal Reserve seems determined to weaken the dollar, so avoid the shares for now. | $702/$363 $700 |
| * 52-week high/low | |||