| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Advanced Computer Software (ASW)
Software/computer services |
Shares | Unlike cash-strapped smaller rivals, this business software provider has invested heavily recently. As a result it looks “strongly placed” to capitalise on improving conditions. | 63.75p/38.25p* 62.75p |
|
Advanced Medical Solutions (AMS)
Healthcare equipment and services |
Investors Chronicle | The woundcare specialist scared investors with a profit warning in June. Yet its LiquiBand medical sealant is selling well in America and could treble the division’s revenues. Buy. | 96p/63p 73p |
|
Associated British Foods (ABF)
Food producers & processors |
The Daily Telegraph | The food producer and owner of Primark has one of Britain’s “most potent” retail formats. The mix offers “growth and stability” and justifies its price-to-earnings (p/e) ratio of 15. | 1,336p/1,059p 1,282p |
|
Cable & Wireless (CWC)
Telecommunications |
Shares | Problems at the telecoms infrastructure firm’s Caribbean operations seem finally to be bottoming out. Another boost will come if it confirms that the dividend won’t be cut. | 45.25p/27.25p 34p |
|
Castings (CGS)
Industrial engineering |
Money Observer | The car components manufacturer has proved that it can perform well in even the most difficult markets. It exports 80% of production. | 346.5p/252.5p 340p |
|
CUPID (CUP)
Travel & leisure |
Investors Chronicle | The online dating service is set to enjoy a 69% increase in marketing spend and international expansion. With exposure to the American market it looks cheap on a forward p/e of ten. | 252p/168p 205p |
|
Debenhams (DEB) General retailers |
The Times | The UK department store offers some light in the retail gloom. Refurbishments are delivering an uplift of 6% to sales. The positive effect should continue and see the shares upgraded. | 100.5p/52.25p 99p |
|
Dixons Retail (DXNS) General retailers |
The Times | The firm behind the PC World and Currys brands should be one of the survivors of British retailing. It’s sold a warehouse to pay off debt and sales in central and northern Europe are up. | 20.25p/9.25p 20p |
|
Imperial Innovations (IVO)
Financial services |
Money Observer | This healthcare technology provider has spent millons on a host of start-ups. Thanks to founders Imperial College it has plenty of research nous and an untapped £100m in the bank. | 375p/262.75p 317p |
|
James Halstead (JHD)
Construction/materials |
Money Observer | Shares in the commercial flooring manufacturer are up almost 50% due to increased demand in France and Scandanavia. The party isn’t over yet, with sales likely to rise further. | 648.5p/410.25p 605p |
|
Kentz (KENZ) Oil equipment, services & distribution |
Shares | The oil services firm is chasing up to $4.4bn worth of contracts. Given that it trades on an undemanding forward p/e of 9.6, the potential upside isn’t reflected in the price. Buy. | 508p/325p 392.25p |
|
Lupus Capital (LUP)
Construction/materials |
Investors Chronicle | The door and window parts supplier is feeling the benefits of the recovery in the US housing market. Selling a loss-making division has also helped and pre-tax profits should hit £19m. | 137.5p/87p 137p |
|
Monitise (MONI) Software/computer services |
Investors Chronicle | The mobile payments systems-maker has never made a profit, but its growth is “impressive”. Turnover has doubled for the third year in a row with the order book now at £110m. | 41p/24p 33p |
|
Northern Petroleum (NOP) Oil & gas producers |
The Times | There have been lots of takeover bids for North Sea oil and gas players, but Northern has been overlooked. With gross profits doubling in the first half of 2012, there’s hope yet. | 97.5p/61.25p 67.75p |
|
Petra Diamonds (PDL) Mining |
The Times | The miner’s share price has halved since the spring due to a 30% fall in diamond prices. But now it’s selling less productive mines and improving the remaining ones. Buy in now. | 188.25p/96.25p 98p |
|
Quindell Portfolio (QPP)
Software/computer services |
Investors Chronicle | Though still a newcomer, the insurance and telecoms outsourcer is undervalued. Full-year adjusted pre-tax profit should surprise on the upside and the forward p/e is under nine. | 8.9p/1.9p 8.7p |
|
Tangiers Petroleum (TPET)
Oil & gas producers |
Shares | The oil explorer is about to release an update on its plans to farm out its Moroccan operations. The deal could be worth £57.7m. “Buy.” | 43.5p/19p 20p |
|
VP (VP) Support services |
The Mail on Sunday | Equipment rental specialist VP is doing well despite tough business conditions. The oil services division is growing strongly. 2012 sales beat 2011 and there’s more to come. | 330p/191p 304p |
|
Wolseley (WOS)
Support services |
Shares | Most analysts are pretty gloomy about the heating and plumbing materials giant, which trades on a p/e of 15.5. But nay-sayers have missed the US housing market recovery. Buy. | 2,739p/1,425p 2,526p |
| Buy | |||
| Company | Publication | Reason | Price tipped |
|
A&J Mucklow (MKLW) Real estate |
Investors Chronicle | Shares in the Midlands-based industrial landlord have done well in the last eight months, despite falling property values. But a 20% premium to net asset value “looks unsustainable”. | 403p/280p 361p |
|
BP (BP) Oil & gas producers |
The Sunday Telegraph | The oil firm may seem cheap on a p/e of 7.5, but its problems are all too obvious. Court cases from 2010’s oil spill continue. Hold. | 504.5p/372p 437p |
|
Fyffes (FFY)
Food producers & processors |
The Sunday Telegraph | The fruit brand has bought 3,800 hectares of farmland in Latin America in the last six years. It’s a good strategy, but the firm looks too expensive. Avoid. | 42p/30p 40.5p |
|
Mitchells & Butlers (MAB) Travel & leisure |
The Daily Telegraph | The pub and restaurants group has been under a cloud following a low-ball hostile bid in 2011. Add in corporate governance concerns and investors should be wary. Hold. | 288.75p/215.75p 286.25p |
|
Shaft Sinkers (SHFT)
Mining |
Investors Chronicle | The mining services specialist has been hit by an unholy trinity of “logistical problems, fatalities and delayed work”. Throw in the commodities downturn and it’s a clear sell. | 148p/38p 63p |
| * 52-week high/low | |||