| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Anite (AIE) Computers |
Shares | The mobile network testing specialist should benefit from the roll out of 4G services in Britain. Demand for its services should accelerate and the shares could hit 150p. | 134p/58p* 127p |
|
Balfour Beatty (BBY) Construction |
Investors Chronicle | Edinburgh University has awarded the construction firm preferred bidder status on a £110m contract to build and run student accommodation. The contract will last 50 years. Buy now. | 312p/215p 281p |
|
Berendsen (BRSN) Textile services |
The Daily Telegraph | Half-year results at the laundry rental provider were better than expected, with steady growth despite currency headwinds. Buy for the progressive dividend policy and yield of 4.7%. | 552p/403p 526p |
|
Consort Medical (CSRT) Medical devices |
The Times | The metered dose inhaler provider’s recent trading statement was confident and its new smokeless cigarette is intriguing. It looks attractive for the long term. Buy on weakness. | 745p/495p 733p |
|
Costain (COST) Construction |
Investors Chronicle | Despite the tough environment, Costain’s order book hit £2.4bn at the year end. Over £850m in revenue is in the bag for 2012, and it’s sitting on a healthy cash pile. | 248p/180p 228p |
|
GETECH (GTC) Aim |
Shares | GETECH is likely to see earnings upgrades following results due in November and the likely reintroduction of the dividend. A forward price-to-earnings (p/e) ratio of 9.6 is too low. | 30p/19p 30p |
|
Halfords (HFD) Retail |
Shares | The car parts and bicycle retailer disappointed with consecutive quarters of sales drops. But the ‘Bradley Wiggins effect’ is expected to turn this around and bid whispers continue. Buy. | 351p/187p 234p |
|
Hansteen Holdings (HSTN) Industrial property |
The Times | Industrial property is unfashionable but Britain and Germany, where Hansteen holds 60% of its assets, still need more. Income rose by 21% in the first half. Buy for the 6% forward yield. | 82p/67p 75.75p |
|
John Laing (JLIF) Infrastructure Fund |
The Daily Telegraph | This spin-off from the construction group invests in long-term operational projects and saw its portfolio valuation grow by 4.5% in the last six months. A solid income buy, yielding 5.5%. | 111p/104p 110p |
|
Kea Petroleum (KEA) Aim |
Shares | If they are positive, flow test results due in October from its Puka-1 oil discovery could make the Kiwi oil-explorer a commercial oil producer by the end of the year. Buy ahead of results. | 11p/4p 9p |
|
Kenmare Resources (KMR) Mining |
The Daily Telegraph | The titanium miner’s plans for expansion at its Moma mine in Mozambique are back on track. It is also getting better prices for its minerals and should move into profit this year. | 63p/30p 38p |
|
Melrose (MRO) Manufacturing |
The Daily Telegraph | Profits at the turn-around specialist should be boosted by the purchase of German smart-meter maker Elster. Given Melrose’s proven business model, the shares remain a buy. | 254p/151p 237p |
|
Polymetal Intnl (POLY) Gold mining |
The Times | The former Soviet Union miner faces corporate governance issues. But it’s reaching the end of a heavy investment programme, which isn’t reflected in the shares. It’s a speculative buy. | 1,195p/748p 973p |
|
Primary Health Properties (PHP) REITS |
The Daily Telegraph | Shares in the property trust, which builds GP surgeries, are trading near their highs but the dividend is still rising – the forward yield is 5.5%. NHS revenues look secure. Buy for income. | 350p/301p 339p |
|
Produce Investments (PIL) Aim |
Shares | The potato supplier has been overlooked and the shares are worth buying ahead of 28 September finals. Good news on its Greenvale Farm Fresh Tesco brand could boost the shares. | 160p/153p 154p |
|
Quadrise Fuels (QFI) Aim |
Investors Chronicle | A deal with oil giant Saudi Aramco could transform the company, which makes a water-suspended fuel emulsion. Trials with Maersk could also provide a re-rating of the shares. | 13p/4p 10.75p |
|
Raven Russia (RUS) Real estate |
Investors Chronicle | The industrial landlord is exceptionally profitable. Annualised net operating income is $167m, up from $129m last year. Trading at 22% below net asset value, the shares are a bargain. | 68p/49p 56p |
|
Unite (UTG) Property services |
The Times | The university accommodation provider has a robust business model and should benefit from the continued demand for university places, despite the fee hike. It’s good for the long term. | 251p/150p 246p |
|
United Drug (UDG) Pharmaceuticals |
Investors Chronicle | The Irish drugs wholesaler has just diversified and bolstered its pharmaceutical services division with $100m of acquisitions, so expect growth rates to improve soon. Buy. | 217p/155p 207p |
|
Vertu (VTU) Aim |
Shares | This automotive retailer trades on a p/e of just 9.5, yet it is performing well – sales rose 11.6% in the four months to July and it has the balance sheet strength to lead consolidation. Buy. | 34p/23p 32p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Bunzl (BNZL) Support services |
Investors Chronicle | The food packaging group’s rating now looks steep at 16 times earnings. Falling cash flow and rising debt will constrain opportunities to grow by acquisition. It’s time to take profits. | 1,168p/715p 1,099p |
|
Goldenport (GPRT) Shipping |
Shares | Excess capacity and difficult macro-economic conditions are putting pressure on the Athens-based company. Opting for shorter contracts has reduced Goldport’s earnings visibility. Sell. | 91p/47p 56p |
|
Lonmin (LMI) Mining |
The Daily Telegraph | Violence at Lonmin’s Marikana mine left 44 dead, while its CEO is seriously ill and banking covenants may be breached. A $1bn rights issue may also be required. Avoid for now. | 1,270p/571p 640p |
|
Perform (PER) Multi-media content |
The Daily Telegraph | Shares in the multi-media sports content provider have had a great run this year, but trade on a hefty p/e of 34 for 2012 and the directors just sold 1.85 million shares. Time to take profits. | 447p/165p 374p |
|
Smith & Nephew (SN) Healthcare equipment |
Investors Chronicle | The hip-replacement specialist’s markets remain weak and it will take time to build a presence in emerging markets. A p/e of 15 looks too high. Sell on the recent share-price spike. | 687p/515p 666p |
| * 52-week high/low | |||